No Fee Tracker Mortgages Explained

There can be hidden costs associated with all mortgage types, and this is also true of tracker mortgages. This article is going to explain what tracker mortgage fees to look out for, and how they can be avoided.

Can I get a tracker mortgage with no fees?

When you commit to a mortgage, the last thing you want to be faced with is unexpected charges.

Tracker mortgages come with an element of risk, and in the event of a sudden soar in the Bank of England’s base rate, you may decide that the best course of action is to repay early or switch your deal, and this is when you’re most likely to incur extra charges.

People often ask us if they are able to secure a no-fee or low-fee tracker mortgage. The simple answer is yes, it’s possible, but it all depends on your specific circumstances and which mortgage provider you opt for.

Do tracker mortgages have early repayment charges?

If you’re wondering whether getting a tracker mortgage with no early repayment charge (ERC) is possible, the answer all comes down to the lender’s terms and at what point you are within your monthly repayments.

Although many tracker deals allow overpayments without charges, there tends to be a limit to how much you can overpay, with an average of 10% of the mortgage balance per year.

The exception to this is if you’re still within the introductory period. Most tracker deals will likely impose an ERC if you remortgage or repay the mortgage during this time.

However, suppose you’re past the introductory period or moved to the lender’s standard variable rate (SVR). In that case, there aren’t usually any early repayment charges for overpayments, remortgaging, or early loan payment, although this will vary by lender.

If you have a lifetime tracker mortgage, you may be required to pay an ERC within a set period after the deal is taken out.

To find out different lenders’ stances on ERCs, contact us to speak with a tracker mortgage specialist who can delve into the fine print and let you know exactly what fees you can expect with particular providers, if any. Talking to a broker before you start could save you time and money in the long run.

Can I get a tracker mortgage with no exit fee?

Regardless of your mortgage type, many lenders charge an exit fee for closing your account, even if you do not repay it early.

Exit fees tend to range between £50 and £300, and your original mortgage contract should detail the cost of any exit fee you will be required to pay when you finish repaying your loan.

In some cases, exit fees will already be covered in your mortgage account fee, as this will usually include set-up and maintenance costs as well as account closure.

If you’re charged an exit fee greater than the fee stated in a lender’s original contract, the FSA ruling now permits mortgage customers to ask their lender to refund a portion of their mortgage exit fees.

If you want to avoid these fees, remember that some providers don’t charge anything to close your account.

How do I get the best fee-free tracker mortgage?

Finding the best fee-free mortgage to match your specific personal requirements can be a tricky task. This is where we can help!

The advisors we work with already have a deep understanding of the various types of tracker mortgages available across the market.

Speak to an expert to secure the best no-fee tracker mortgage

If you’re considering a tracker mortgage and want to avoid any extra charges due to a change in circumstances, get in touch, and we’ll forward your enquiry to one of the specialists we work with.

You can call us on 0330 818 7026 or submit an online enquiry. Our whole-of-market brokers will identify providers most suited to your circumstances and find you the best tracker mortgage rates with no or low fees.

We only work with accredited brokers with a track record in providing excellent service to our customers. We don’t charge a fee, and there is no obligation on your part.