Tracker Mortgages

One can often choose from an average of 4 different products, which either have a discount for the first 2 years or a low tracking rate for the life of the mortgage, the products available will be dependent on the mortgage lender you consult.

Typical Tracker Mortgage Products:-

  • 2 Year Discount Tracker mortgages:
    Often available for first-time buyers, relocating to a new home or looking to move your mortgage to a new mortgage lender

  • 2 Year Discount Tracker mortgages:
    Often offered if you're looking to move your mortgage to a new mortgage lender

  • Lifetime Tracker mortgages:
    Often available for first-time buyers, relocating to a new home or looking to move your mortgage to a new mortgage lender

  • Lifetime Tracker mortgages:
    Often offered if you're looking to move your mortgage to a new mortgage lender

A Tracker mortgage typically has an interest rate set slightly above the Base Rate, but usually just below the mortgage lender’s standard variable rate.

As the Base Rate is increased or decreased, the tracker rate moves accordingly and the monthly payments also go up and down, even if the mortgage lender does not change their SVR.

Advantages of a Tracker Rate mortgage

The advantages of a Tracker Rate mortgage, is that it is usually little cheaper than a Standard Variable Rate mortgage and one will benefit from a downward movement of the Base Rate, (even if the lender does not decrease their own standard variable rate), But be aware that there’s no protection against an increase in the Base Rate and no ‘cap’ on how much one could be charged.

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