Best Tracker Mortgage Interest Rates

Mortgage rates are currently at their highest level since 2008 and tracker mortgages are no exception. At the moment tracker rates start slightly higher than most fixed-rate mortgages but with the potential to go lower as and when the Bank Of England’s (BofE) base rate falls.

Regardless of the type of mortgage you’re looking for, it’s never been more important to shop around for the best available rate. The table below gives you an immediate illustration of the best rates currently available today if you’re considering a tracker mortgage.

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.

Typical rates for tracker mortgages

At the time of writing (August 2023), the Bank of England base rate is 5.25%. So, you can expect tracker mortgage rates of around 5.25% to 6%. Some of the very cheapest mortgage tracker rates (for ideal candidates) may be slightly lower.

Tracker mortgages are so-called because they track the Bank of England base rate of interest (or, in a minority of cases, a different interest rate). Typical rates for tracker mortgages are 0.5%-1% higher than the Bank of England base rate.

Remember: if the base rate rises, tracker mortgage rates will also rise. If it falls, they will fall. So, the rate you sign up for is not necessarily the rate you’ll be paying throughout the time you have the mortgage.

How to get the best tracker mortgage deal

Rates tables are certainly a good starting point when you’re looking for a mortgage. But, the smartest way to find the best rates and offers available is to seek the help of an experienced mortgage broker.

They can help with:

• Finding the best lenders offering the most competitive deals across the market
• Comparing each tracker rate deal including all the associated costs and fees
• Advising you on how your repayments could change throughout the term of a tracker rate deal

If you’d like us to connect you with a broker we work with who specialises in tracker mortgages, get in touch.

Additional costs and fees

Many people are looking for the best tracker mortgage with no fee, but it’s worth noting that this could work out more expensive than a mortgage that does have fees.

You’ll want to compare the total cost, including the following possible fees:

• Arrangement fee: Also sometimes called a product fee, this is typically anywhere between £0 and £2,000.
• Valuation fee: Many lenders will conduct the mortgage valuation survey for free, but you should always check to see if there’s an additional fee.
• Penalty fees: Find out how much the lender will charge if you miss a payment or if you overpay by more than the allowed amount.
• Early repayment charge: If you want to repay your mortgage before the end of the tracker period, you might pay a charge. This is less common with tracker mortgages than other types.
• Exit fee: Sometimes a lender charges a fee at the end of the mortgage for closing the account.

Why use Online Money Advisor?

Speaking to a broker can help you decide whether a tracker mortgage is right for you, or whether a discounted-rate or fixed-rate mortgage might be more appropriate – this is where we can help!

Using our unique broker-matching service, we can connect you with one of the numerous mortgage experts we work with who has the right level of knowledge to assist with your requirements. To arrange a free, no-obligation chat, just call 0808 189 0463 or fill out this form.