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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: 3rd September 2020*

With the Bank of England’s (BoE) base rate sitting at an all-time low of under 2% since 2008, it stands to reason that tracker mortgages have soared in popularity.

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.

In this article, we’ll be looking at:

For the best advice on how to get a fee-free tracker mortgage, call us on 0808 189 2301 or make an enquiry. We’ll then put you in touch with one of the brokers we work with who will be able to provide advice tailored to your personal circumstances.

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Can I get a tracker mortgage with no fees?

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

Tracker mortgages come with an element of risk, and in the event of a sudden soar in the 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 mortgages. 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 it’s possible to get a tracker mortgage with no early repayment charge (ERC), the answer all comes down to the lender’s terms, and at what point you are within your repayments.

Although many tracker deals will allow you to make overpayments without incurring any charges, there tends to be a limit to how much you can overpay without getting charged, with 10% of the mortgage balance per year on average.

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

However, if you’re past the introductory period, or you’ve moved to the lender’s standard variable rate (SVR), there aren’t normally any early repayment charges for overpayments, remortgaging or paying the loan off early, 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, you can 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 out could save you time and money in the long run.

Can I get a tracker mortgage with no exit fee?

Regardless of what type of mortgage you have, many lenders will charge an exit fee for closing your account, even if you’re not repaying 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 the account closure.

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

If you’re keen to avoid these fees altogether, bear in mind that some providers don’t charge anything at all for closing 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 as a result of 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 0808 189 2301, 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 5 star, accredited brokers with a track record in providing excellent service to our customers. We don’t charge a fee, and there is absolutely no obligation on your part.

Updated: 3rd September 2020
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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.