Tracker mortgage
A tracker mortgage has an interest rate that follows another rate, usually the Bank of England base rate, plus a set margin.
Also known as: tracker rate, tracker mortgages, tracker
If the base rate rises, your rate rises by the same amount, and if it falls, your rate falls. This can save money when rates are dropping, but payments can also climb quickly.
Some trackers have no early repayment charges, which gives flexibility. Others have a minimum rate (a collar), so check the terms.
An authorised mortgage adviser can explain how this applies to your circumstances, and MoneyHelper offers free guidance. Your home may be repossessed if you do not keep up repayments on your mortgage.
Related terms
This page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.