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Tracker Mortgage Rates in the UK

How to get the best UK tracker mortgage rates in 2020
It's time to find a better deal
With interest rates at historic lows, now is the time to speak to an expert mortgage broker to find out how much you could save

No impact on credit score

Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 27, 2021

We receive daily enquiries on tracker mortgages. This is a type of variable mortgage product that follows an external base interest rate – usually the Bank of England’s – to set the rates on its mortgage deals.

If you’re looking for information about tracker mortgage rates, you’ve come to the right place.

We work with a team of whole-of-market brokers who have arranged cheap tracker mortgages for hundreds of happy customers. Get in touch to speak to an expert for a real-time tracker mortgage comparison tailored to you.

What are the current tracker mortgage rates in the UK?

At the time of writing, the Bank of England’s (BoE) base rate is 0.75%. How much interest you are charged on top of that for your tracker mortgage will very much depend on what lender you approach and your individual circumstances.

So for example, assuming a lender follows the BoE’s base rate, they may offer you a loan at a rate of 0.75% plus 1% (meaning you’d pay 1.75% interest) which will either stay the same or fluctuate in line with the base rate, throughout the term.

However, it’s important to note that many tracker mortgages have a “cap” and/or a “collar” to ensure rates do not exceed or fall below a certain level.

The thing to keep in mind is that rates are forever in flux and can change at any time. So, the best way to get an accurate idea of where they’re currently at is to talk to a whole-of-market broker with specialist knowledge of these products.

Tracker mortgage rates history

The BoE base rate, and correspondingly tracker mortgage rates, have seen a significant dip since 2007, when it peaked at 5.75% – the highest it had been in almost a decade.

Rates plummeted to 0.5% in 2009, and it has stayed below 2% since this time. It reached an all-time low of 0.25% in 2016, before rising to 0.5% in 2017, up to 0.75% the following year.

For the time being, the BoE’s monetary policy committee has voted to keep the base rate at 0.75%, but during a time of economic uncertainty it is difficult to predict whether tracker mortgage rates will rise or fall in the future.

How to get the cheapest tracker mortgage rates in the UK

Due to the level of risk, you take on with a tracker mortgage, these products usually offer more competitive rates than you’d expect from a fixed-rate deal, which offers you the security of knowing that your monthly repayments will stay the same.

The cheapest tracker mortgages tend to be reserved for shorter-term deals rather than “lifetime” products (typically between two to five years), after which time you’ll be moved to the lender’s standard variable rate (SVR), which is often higher.

How do my personal circumstances impact tracker mortgage rates?

As well as the base rate and term length, there are a number of personal factors that impact how competitive the tracker mortgage rates you receive are.

For example, the property’s loan to value (LTV), your credit historyaffordability and age.

Every lender works to different eligibility criteria which impacts what deal you’re offered. To get the best rate for a tracker mortgage, contact a whole-of-market broker who will scour the landscape to identify all the willing providers available for your mortgage application.

From there, they will compare the most competitive deals and match you with a lender who is best suited to you and your individual circumstances. You can speak to a tracker mortgage specialist by making an online enquiry today.

How to get the best first-time buyer tracker mortgages

Buying a property is not something you want to rush into, and for first-time buyers, taking on a mortgage which comes with an additional element of risk may not be the most viable option.

However, if you can prove your affordability in the event of an increase to your monthly repayments, and meet the lender’s other criteria, there’s no reason that you shouldn’t receive competitive rates on a tracker mortgage as a first-time buyer.

Can a broker help me find the lowest tracker mortgage rates?

Well, the rates you end up with on a tracker deal will usually be dictated by the Bank of England’s base rate, but a broker can certainly help you find the best deals.

Before you commit to anything, speak to a tracker mortgage expert who can discuss your circumstances, and advise you on the most suitable mortgage product for your situation.

Get in touch for advice from an expert in the field; they will discuss your options with you, and find you the best tracker mortgage rates if you choose to proceed.

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Which lenders offer tracker mortgages?

People often ask us how they’d go about finding the best tracker mortgage lenders.

Many high street banks and building societies, including Barclays and HSBC and First Direct offer tracker mortgages, so there are plenty of options available. The key to finding the best deal for you is to do your homework.

While it may be tempting to take it upon yourself to contact lenders for a quote, this can be a very arduous task. And more importantly, making too many applications in a short space of time can be damaging to your credit score.

In contacting a whole-of-market broker, you will only have to relay your details once, meaning you can sit back and relax while we work to match you with the most suitable provider for your situation.

Not only can the brokers we work with compare all available products efficiently they can also access exclusive deals that aren’t available to the general public directly.

Are interest only tracker mortgage rates any different?

No. Although you only have to pay off the interest each month, the rate you will pay is usually still tied to the Bank of England’s base rate.

One thing to keep in mind, though: if you were to be switched to the lender’s standard variable rate, this can be higher for interest-only mortgages compared to capital and repayment deals.

Speak to an expert to compare tracker mortgage rates

To secure the cheapest base rate tracker mortgage on the market, contact Online Mortgage Advisor.

You can give us a call on 0808 189 2301, or submit an online enquiry and we’ll get to work matching you with the most suitable broker for your circumstances.

The tracker mortgage experts we work with will compare deals across the whole of the market and find the one which is right for you.

We only work with 5 star accredited brokers, we don’t charge a fee, and there is absolutely no obligation on your part.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the 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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