Tracker Mortgages Explained

Latest Tracker Deals

2 Year TRACKER deal »NatWest Mortgages

Call NatWest FREE on 0800 158 2934

1.84%Reverts to 3.99% after 2 years


Overall Cost for Comparison 3.80% APRC. This is the cost of the mortgage over the full term. Early redemption charges may apply.

Compare latest tracker mortgages - use our mortgage tables below to see a selection of market leading mortgage deals - alternatively if you need advice - call our independent mortgage team on 0117 332 6063.

Provider

Type

Initial Interest Rate

Initial Term

Max LTV*Product Fee 
Tracker

1.84%

Reverts to 3.99%

2

Years

60%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.80% APRC. This is the cost of the mortgage over the full term.
Tracker

1.84%

Reverts to 3.99%

2

Years

60%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.80% APRC. This is the cost of the mortgage over the full term.
Tracker

2.04%

Reverts to 3.99%

2

Years

70%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.80% APRC. This is the cost of the mortgage over the full term.
Tracker

2.07%

Reverts to 3.99%

2

Years

75%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.80% APRC. This is the cost of the mortgage over the full term.
Tracker

2.24%

Reverts to 4.79%

2

Years

70%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.
Tracker

2.44%

Reverts to 4.79%

2

Years

80%

YesMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.
Lifetime Tracker

4.49%

Lifetime of the mortgage

90%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.60% APRC. This is the cost of the mortgage over the full term.

Representative Example:


A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.


The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).


In this example the overall cost for comparison is 3.7% APRC representative.


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Tracker Mortgages Explained

In essence a tracker is very similar to a standard variable rate mortgage, except for the fact that it has a variable rate of interest that directly tracks the Bank of England base rate. In reality this means that the rate you pay will tend to fluctuate over the mortgage’s lifetime. In order to explain Tracker mortgages, it is pertinent to account for the advantages and disadvantages:


Advantages

  • You may pay a low interest rate if the Bank of England base rate is on the decrease
  • The interest rate may begin at a low level for the initial few years before the lender switches the interest rate to the standard variable rate that they determine by comparing it against the base rate of the Bank of England


Disadvantages

  • Some Tracker mortgage deals may subject you to early redemption penalties
  • You may be expected to pay a higher rate of interest if the Bank of England base rate increases
  • You may not be able plan for your future finances because the interest rate varies considerably

 

The minimum term for a Tracker mortgage deal is usually 2 years and you may rely on a low base rate throughout this period and that your lender’s standard variable rate will remain low for the duration of the interest rate term. It may be necessary to seek financial advice from a professional mortgage advisor if you need Tracker mortgages explained in further detail. Once you have chosen the type of Tracker mortgage deal that is right for you, you may need to choose your preferred method of repayment:

 

  • Repayment – monthly interest payments on top of mortgage repayments guarantees that you are able to repay your whole loan within the interest rate term.
  • Interest Only – you may be required to make monthly payments that consist of the interest you owe over the course of a month and you may also need to make separate payments into an ISA to repay your mortgage loan to your lender upon maturity.

 

See the table above for a selected range of tracker mortgage deals from a number of different providers - alternatively call our independent mortgage team on 0117 332 6063 for advice on your options.

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Call 0117 332 6063

to speak to the Fair Mortgages team.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The above mortgage products highlighted on this website are available directly through lenders who will be able to provide further information about the product you are interested in. If you are unsure about what mortgage product is suitable for you, we suggest you speak to an independent mortgage broker