The best tracker mortgage rates available right now
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 |
0.98% (tracks Base Rate plus 0.73%) | 60% | £1,495 | |
1.15% (tracks Base Rate plus 0.9%) | 65% | £995 | |
1.09% (tracks Base Rate plus 0.84%) | 70% | £999 | |
1.09% (tracks Base Rate plus 0.84%) | 75% | £999 | |
1.14% (tracks Base Rate plus 0.89%) | 80% | £999 | |
1.24% (tracks Base Rate plus 0.99%) | 85% | £999 | |
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 |
1.17% (tracks Base Rate plus 0.92%) | 60% | £495 | |
1.99% (tracks Base Rate plus 1.74%) | 65% | £0 | |
1.69% (tracks Base Rate (capped at 0.5%) plus 1.19%) | 70% | £0 | |
1.40% (tracks Base Rate plus 1.15%) | 75% | £495 | |
1.51% (tracks Base Rate plus 1.26%) | 80% | £495 | |
1.71% (tracks Base Rate plus 1.46%) | 85% | £495 | |
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 |
2.39% (tracks Base Rate plus 2.14%) | 60% | £0 | |
1.49% (tracks Base Rate plus 1.24%) | 65% | £999 | |
1.55% (tracks Base Rate plus 1.3%) | 75% | £999 | |
2.14% (tracks Base Rate plus 1.89%) | 80% | £1450 | |
1.75% (tracks Base Rate plus 1.5%) | 85% | £999 | |
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 |
2.39% (tracks Base Rate plus 2.14%) | 60% | £0 | |
1.89% (tracks Base Rate plus 1.64%) | 65% | £499 | |
1.95% (tracks Base Rate plus 1.7%) | 75% | £499 | |
2.74% (tracks Base Rate plus 2.49%) | 80% | £0 | |
2.15% (tracks Base Rate plus 1.9%) | 85% | £499 | |
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.
