Tracker rate mortgage

A tracker rate mortgage, unlike a fixed rate mortgage, means your interest will rise and fall in line with another interest rate – typically the Bank of England’s base rate – for a certain period of time. This is usually two or five years. 

If the rate drops, your monthly mortgage payments will also drop. You could take advantage of these lower rates by overpaying on your mortgage. This can make it quicker to pay off your mortgage and reduce the amount of interest you pay. 

If you are on a fixed or tracker rate, you can pay up to 20% of your outstanding balance each year without incurring an Early Repayment Charge.

However, if the tracker rate goes up and you continue to repay the same amount as before, it could take longer to pay off your mortgage.

After the initial deal period ends, your mortgage interest rate switches to the Standard Variable Rate (SVR), which means your rate could both rise or fall, depending on changes in the interest rate we charge.

At this point, if you don’t want to stay on a SVR mortgage then you may have the option to switch to a new deal or, if you're with another mortgage provider, you can remortgage to us.

Do not worry, we will contact you before your tracker rate ends so that you can make arrangements.

For more information on the SVR, take a look at our SVR mortgage guide.