Cashback Remortgages · Mortgage rates
Tracker Mortgages Explained
A tracker mortgage follows a stated reference rate — usually the Bank Rate — plus a fixed margin. When the reference rate moves, your payment moves with it.
How trackers work
Your rate is the reference rate plus the lender's margin, so a 0.75% margin over a 5% Bank Rate gives 5.75%. Some trackers have a floor below which they will not fall, set in the contract, and may or may not have early repayment charges.
Check the terms carefully.
When a tracker suits
A tracker can appeal if you want flexibility or expect rates to fall, but your payment can rise if the reference rate increases. Compare it against a fix over a sensible period.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.