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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 17th March 2021*

When it comes to shopping around for the best buy-to-let tracker mortgages, an understanding of the product and how outside factors can affect the rate you pay is important.

Getting a mortgage is a huge decision and with the average mortgage term expanding over 25 years, choosing the wrong deal can affect your finances for a significant period of time.

With so many rates, payment options and terms and conditions, navigating your way through can be difficult without expert advice.

That’s why we’ve created this helpful guide, with tips and information about buy-to-let tracker mortgages and where to turn for expert advice.

To speak to an expert about the best buy-to-let tracker mortgage rates, click here.

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What is a Buy-To-Let tracker mortgage?

A buy-to-let tracker mortgage is a secured loan that some borrowers take out when they want to buy a property, for the purpose of renting it out for a profit. The term ‘tracker’ refers to the way that the interest rate set on the mortgage follows, or tracks, an external interest rate known as the base rate. For borrowers, this means that the rate of interest they pay on their mortgage can fluctuate heavily, depending on the economy and the rate of inflation. As well as this, buy-to-let tracker mortgage providers can also add or deduct interest on top of this.

Buy-to-let tracker mortgage example

So for example, if the current base rate was 0.75%, a lender may also charge 2% on top of this for a £200,000 mortgage.

Therefore, with a combined interest rate of 2.75%, your monthly mortgage payments on a 25-year mortgage would be £921.

However, if the base rate were to increase from 0.75% to 1%, your monthly mortgage payment would increase to £946.

Buy-to-let tracker mortgage: advantages and disadvantages

It’s always advisable to weigh up the pros and cons of each mortgage type. That way, you can make an informed decision and see if a tracker mortgage is right for you.


Although buy-to-let tracker mortgages can be unpredictable, the change of interest rate can also be beneficial for some borrowers. This is because if the base rate decreased, the interest rate you pay on your mortgage would decrease too, reducing the cost of borrowing, and therefore saving you money.

This could provide an opportunity for tracker mortgage customers to potentially pay off more of their mortgage if you keep your monthly payments unchanged. As well as this, there are some tracker mortgages that don’t have an early repayment charge.


There are also negative points that you may wish to consider before getting a buy-to-let tracker mortgage. For example, if the base rate were to increase, the interest rate of your mortgage could significantly increase, increasing the cost of borrowing.

Many buy-to-let tracker mortgage customers are surprised to discover that the extra money paid on a mortgage after an increase of interest doesn’t pay off the capital, and therefore wouldn’t go towards paying more off your mortgage.

As well as this, depending on the rate of increase, your new level of debt could become unaffordable and so to avoid mis-payments, it can be a good idea to put away any savings.

Preparing for a change of buy-to-let tracker mortgage rates

A drastic or sudden change of base rate on a buy-to-let tracker mortgage can affect your ability to keep up with your payments.

To avoid a mortgage default, a good tip is to calculate how much your mortgage payments would be in the event of an increase of decrease.

Of course, you won’t be able to predict future interest rates but it can be helpful to estimate your mortgage payments for an increase and decrease of 3% each way.

You may decide that any potential increase would be too expensive and therefore unaffordable. However, you may be in a position to keep back savings which could cover the extra increase.

Without knowledge of the current mortgage rates, estimating your future mortgage payments can be difficult, however, the advisors we work with will be more than happy to do this for you.

Talk to an advisor for a quote or for more information about buy-to-let tracker mortgage rates.

Buy-to-let lifetime tracker mortgage comparison

A buy-to-let lifetime tracker mortgage is a product with tracker rate interest for the duration of the term, and the advisors we work with have plenty of experience arranging these.

It takes time to find the best buy-to-let tracker mortgage as not every deal is visible to the public and some online comparison tools don’t include deals from every mortgage provider on the market. A more efficient way to compare the numerous rates and deals that may be available is to seek the help of a buy to let mortgage broker.

For one, they will already be aware of the best lifetime tracker buy-to-let mortgages and after listening to your needs and understanding what it is you need from your mortgage, they can quickly highlight the most suitable deals for you.

Find the best buy-to-let lifetime tracker mortgages

Another benefit of working with a mortgage broker is that they can quickly find the best buy-to-let tracker mortgage deals which in turn helps you to save money on wasted application fees. Many borrowers make the mistake of applying to multiple lenders at once.

Not only can this be costly as you may be expected to pay application fees but it can also have a negative impact on your credit report.

Buy-to-let mortgages, in general, can be more difficult to get approval for as some lenders deem them as riskier.

Therefore, any reduction in your credit score needs to be avoided as this can reduce your chances of being accepted by a lender and can also limit the rates that you’ll have to choose from.

To find the best buy-to-let tracker mortgage, speak to a mortgage broker ahead of applying. Based on your circumstances, they can recommend which lenders are more likely to approve of you.

Speak to an expert about buy-to-let tracker mortgages

If you have any questions or would like to know more about buy-to-let tracker mortgages, call us today on 0808 189 2301 or make an enquiry here. The experts we work with have whole-of-market access, meaning that they can find the best deals to suit your circumstances.

Updated: 17th March 2021
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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