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Tracker mortgage | Tracker mortgage rates | variable rate mortgage information
Mortgages

Tracker mortgages

Find out all about tracker mortgages and how they could benefit you

Sorry but we don't currently have any tracker mortgages available. View other mortgages in our range.

Applying for a tracker mortgage

1

Check how much you could potentially borrow.

Before beginning an application, it’s important to check how much you could borrow for a mortgage and what the cost could be. We have a borrowing calculator  and a repayment calculator  to help you decide.

Takes approximately 2 minutes to complete

 

2

Obtain a lending decision (or ‘Approval in Principle’).

Our online Approval in Principle application  takes just 10 minutes to complete, after which we’ll be able to tell you whether or not we would be able to lend to you and how much we would be able to lend.

Takes approximately 10 minutes to complete

 

3

Complete a full mortgage application.

If you’ve acquired a successful lending decision and found a new property then you’re ready for the full mortgage application.  You can complete a mortgage application online   or if you’d like some advice, you can speak to a mortgage advisor in branch or talk to us by phone .

Takes approximately 15 minutes to complete


 

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What are tracker mortgages?

A tracker mortgage is a type of variable rate mortgage where the interest rate tracks (or follows) the Bank of England Base Rate. This means that the interest you are charged on your mortgage (and therefore the amount of your monthly mortgage repayments) depends on how the Base Rate changes:

When the Base Rate falls, your interest rate will also fall.

When the Base Rate rises, your interest rate will also rise.

For some people the flexibility of tracker mortgage rates is an advantage whilst others will prefer the security of knowing what their interest rate will be for a set period of time (as per fixed rate mortgages). With a tracker mortgage (sometimes referred to as a variable rate mortgage) you need to prepare for your interest rate and mortgage payments to go up if the Base Rate rises.


 

Is a tracker mortgage right for me?

See how a tracker mortgage could be the right choice for you and what you need to be aware of:

  • Tracker mortgage rates track the Bank of England Base Rate (a variable rate of interest) over a specified period of time.
  • This means that the interest rate you are charged will rise when the Base Rate increases and fall if it decreases, affecting your mortgage payments in the same way.
  • A minimum  rate of interest is applied to Tracker products (‘the collar’) which means that when the Base Rate falls, the interest rate you pay also falls but won’t go below this minimum rate of interest.
  • A maximum rate of interest applied to a Tracker product is called a “cap”. This means that if the Base Rate increases, the interest rate you pay will not go above this maximum/cap.
  • If you’re interested in Tracker mortgages, you need to make sure you are happy to accept the risk that your mortgage payments would increase in the future if the Base Rate rises.
  • You have the right to repay the loan either partially or in full during the term of the loan.
  • Early Repayment Charges and other fees and charges apply.

Alternatives to tracker mortgages

Fixed

Fix your mortgage interest rate, so it won’t change over a set period of time, regardless of what is happening to interest rates elsewhere.

 

Offset

Use your savings to offset against the balance of your mortgage and reduce the interest you pay.

 

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Need some help?

Visit us

You can visit us in branch to speak to a mortgage adviser.

Call us

Speak to one of our friendly mortgage advisers about your options

0345 166 9510*

  • 8.00am - 8.00pm, Mon-Fri
  • 9.00am - 1.00pm, Sat