The best tracker mortgage rates available right now

As low interest rates persevere, these are the best tracker mortgages to take advantage of the positive climate

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As the name suggests, a tracker mortgage follows movements on the Bank of England Base Rate.

Given that the Base Rate was recently slashed to a record low of 0.25%, these mortgages currently offer some of the lowest rates we've seen for some time.

However, don't be too swayed by the rate on offer now – you also need to work out if you would still be able to afford the mortgage if interest rates rose by a couple of percentage points (however unlikely that might seem right now).

Best two-year tracker mortgage rates

Let's start with short-term trackers. After the initial tracker period finishes, you'll move to the lender's Standard Variable Rate (SVR).

This is another variable rate, but lenders can increase it at any time, irrespective of what's happening with Base Rate, so it's not a particularly stable rate to sit on.

Let's start by looking at the deals with the very lowest interest rates. As you'll see, these tend to charge whopping product fees.

Lender

Interest rate

Maximum loan-to-value

Product fee

Tesco Bank

0.98% (tracks Base Rate plus 0.73%)

60%

£1,495

Chelsea Building Society

1.15% (tracks Base Rate plus 0.9%)

65%

£995

HSBC

1.09% (tracks Base Rate plus 0.84%)

70%

£999

HSBC

1.09% (tracks Base Rate plus 0.84%)

75%

£999

HSBC

1.14% (tracks Base Rate plus 0.89%)

80%

£999

HSBC

1.24% (tracks Base Rate plus 0.99%)

85%

£999

HSBC

1.84% (tracks Base Rate plus 1.59%)

90%

£999


If you don't want to stump up a significant product fee, these are the best deals with fees of under £500.

Lenders

Interest rate

Maximum loan-to-value

Product fee

Skipton Building Society*

1.17% (tracks Base Rate plus 0.92%)

60%

£495

Virgin Money

1.99% (tracks Base Rate plus 1.74%)

65%

£0

Platform Mortgages (for intermediaries)

1.69% (tracks Base Rate (capped at 0.5%) plus 1.19%)

70%

£0

Skipton Building Society**

1.40% (tracks Base Rate plus 1.15%)

75%

£495

Skipton Building Society***

1.51% (tracks Base Rate plus 1.26%)

80%

£495

Skipton Building Society****

1.71% (tracks Base Rate plus 1.46%)

85%

£495

Nationwide Building Society

2.59% (tracks Base Rate plus 2.34%)

90%

£0

*Rate will not go below a floor of 1.17%

**Rate will not go below a floor of 1.40%

*** Rate will not go below a floor of 1.51%

*** Rate will not go below a floor of 1.71%

Best lifetime tracker mortgage rates

Also known as term trackers, lifetime tracker mortgages are linked to the Bank Base Rate for the full lifetime of the mortgage (typically 25 years).

So, there's no potential bill shock as a result of moving to the lender's SVR. What's more they don't tend to charge Early Repayment Charges, so you can escape quickly should Base Rate start to rise.

Let's start with the lifetime tracker mortgages with the very lowest interest rates.

Lender

Interest rate

Maximum loan-to-value

Product fee

First Direct

2.39% (tracks Base Rate plus 2.14%)

60%

£0

Coventry Building Society

1.49% (tracks Base Rate plus 1.24%)

65%

£999

Coventry Building Society

1.55% (tracks Base Rate plus 1.3%)

75%

£999

First Direct

2.14% (tracks Base Rate plus 1.89%)

80%

£1450

Coventry Building Society

1.75% (tracks Base Rate plus 1.5%)

85%

£999

Coventry Building Society

2.2% (tracks Base Rate plus 1.59%)

90%

£999

Now let's take a look at the mortgages with product fees of less than £500.

Lender

Interest rate

Maximum loan-to-value

Product fee

First Direct

2.39% (tracks Base Rate plus 2.14%)

60%

£0

Coventry Building Society

1.89% (tracks Base Rate plus 1.64%)

65%

£499

Coventry Building Society

1.95% (tracks Base Rate plus 1.7%)

75%

£499

First Direct

2.74% (tracks Base Rate plus 2.49%)

80%

£0

Coventry Building Society

2.15% (tracks Base Rate plus 1.9%)

85%

£499

Coventry Building Society

2.85% (tracks Base Rate plus 2.6%)

90%

£499

As you can see, if you're looking for a lifetime tracker mortgage, the best buys are dominated by First Direct and Coventry Building Society.

UK property hotspots 2017 (according to Zoopla)

UK property hotspots 2017 (according to Zoopla)