The Best Tracker Mortgage Rates Available Now In The UK

If you’ve discounted the idea of a fixed rate mortgage and are ready to pursue an application for an interest rate tracker mortgage, it can be hard to know where to start.

You want to find the best deal currently available, but what’s considered a good deal right now? Which lenders are offering the most favourable rates? And how can you sift through and find the best one in a saturated market?

Find out by reading the extensive guide below.

What are the typical interest rates on tracker mortgages right now?

As a rule, tracker mortgage rates tend to be a few percentage points higher than the base rate, set by the Bank of England, meaning you could expect a tracker mortgage to be around 0.5%-1% above this level.

The cheapest tracker mortgages are only slightly higher than the BoE base rate, but to qualify for a rate that low, you’d likely have to have a large deposit or commit to a 5 or even 10 years tracker rate period rather than the more typical 2, 3 or 5 years. Lifetime trackers are also an option should you wish to lock in a fluctuating tracker rate for the duration of your mortgage.

To learn more about how tracker mortgages work and the deal you could expect in your circumstances, reach out to one of our expert brokers.

Best tracker rate mortgage deals

To get a clearer idea of the best tracker mortgage rates you might find at the moment take a look at our rates table below.

The rates quoted above were correct at the time of writing and are subject to change at any time at the lender’s discretion. Speaking to a mortgage broker is the best way to keep track of the rates available at any given time.

How to compare rates and deals

With so many lenders offering tracker deals, different time periods to choose from and rates to work off, it can be time consuming to search to do a manual Internet search for the one that’s best for you. Instead, to save time and potentially money, you should:

Additional fees to factor in

As with any mortgage, there are other costs that you’ll incur when securing a tracker mortgage deal, which could involve an administration, product or booking fee.

Some lenders charge this as a set price, such as Royal Bank of Scotland which charges £995 and Leeds Building Society which charges £999, but others such as CHL Mortgages charge it as a percentage of the loan which can be added onto your tracker rate. For example, a 3% fee leaves the 3 year fixed tracker rate at 5.53% but dropping the fee to 2% increases the rate to 5.94%.

Other fees that might arise include early repayment charges or exit fees should you wish to overpay on your mortgage or end the deal earlier than planned. Each lender will have a cap on how much they’ll allow you to overpay by – typically 10% in a year – and what the fee would be for exceeding that. An exit fee could be anywhere from £50 to £300.

There are, however, a small number of mortgage providers who offer tracker mortgages with no fees, but whether you can access one of these will depend on your circumstances and loan-to-value/deposit. A broker will be able to share which lenders offer the best no fee tracker mortgages for you to consider.

Are the rates any different for remortgages?

Most lenders offer similar rates to those remortgaging onto a tracker mortgage as opposed to those taking a mortgage out for the first time. After all, tracker deals tend to come with such short periods that many opt to remortgage, either to another tracker rate or a fixed rate, to avoid slipping onto their lender’s standard variable rate, which is usually higher.

Speak to a broker who specialises in tracker mortgages

What introductory period to opt for? Which lender to choose? And is this the best approach right now in the current market? These are all questions you have to ask as you embark on a tracker variable rate mortgage search.

Ensuring you don’t make a misstep or miss out on the cheapest base rate tracker mortgage available, expert help is almost a necessity. The brokers we work with source such mortgages for applicants on a daily basis and therefore already have ample knowledge of the current tracker mortgage market and which lender is likely to get you the lowest rate.

To take a free consultation with a broker specifically matched to your situation, call 0800 189 2301 or fill out our enquiry form.