Tracker mortgages: What are they and how do they work?

In the United Kingdom, tracker mortgages are usually based on the Bank of England (BoE) base rate, although some might be based on the LIBOR rate.

Rather than a percentage, the interest rate will be displayed as the following: BoE base rate + X%. For example, if the Bank of England base rate is 0.75%, and your tracker mortgage rate is BoE + 2%, you’ll pay an interest rate of 2.75%.

These deals can be particularly appealing when the BoE rate is low, but there is a danger that your payments could become unaffordable if it increases.

Although some tracker mortgages are capped, many place no limit on how high your interest rate could skyrocket.

Sort by:

Name	Product	Initial rate	Revert rate (SVR)	Maximum LTV	Borrower type	Overall cost for comparison	Cashback	Apply link
HSBC 2 Years Variable - Standard 60% HSBC 2 Years Variable - Standard 60% Remortgaging		5.39% variable (Base Rate plus 0.14% for up to 40 Years)	N/A	60%	Remortgaging	5.6% APRC		Check eligibility View details		loading Fetching your data...
CASHBACK Nationwide Building Society 2 Years Variable Nationwide Building Society 2 Years Variable Remortgaging	CASHBACK	5.39% variable (Base Rate plus 0.14% for up to 40 Years)	N/A	60%	Remortgaging	5.6% APRC	Eligible customers can receive up to £500 cashback on completion. T&Cs apply.	Check eligibility View details		loading Fetching your data...
HSBC 2 Years Variable - Standard 60% HSBC 2 Years Variable - Standard 60% Remortgaging		5.39% variable (Base Rate plus 0.14% for up to 25 Years)	N/A	60%	Remortgaging	5.6% APRC		Check eligibility View details		loading Fetching your data...
Nationwide Building Society 2 Years Variable Nationwide Building Society 2 Years Variable Home mover		5.39% variable (Base Rate plus 0.14% for up to 40 Years)	N/A	60%	Moving home	5.6% APRC		Check eligibility View details		loading Fetching your data...
Royal Bank of Scotland 31/01/2026 Variable Royal Bank of Scotland 31/01/2026 Variable First-time buyerHome mover		5.39% variable (Base Rate plus 0.14% for up to 35 Years)	N/A	60%	First-time buyer, Moving home	5.6% APRC		Check eligibility View details		loading Fetching your data...
CASHBACK Barclays Mortgage 2 Years Variable Barclays Mortgage 2 Years Variable First-time buyerHome moverRemortgaging	CASHBACK	5.39% variable (Base Rate plus 0.14% for up to 40 Years)	N/A	60%	First-time buyer, Moving home, Remortgaging	5.6% APRC	Eligible customers can receive up to £250 cashback on completion. T&Cs apply.	Check eligibility View details		loading Fetching your data...
NatWest Int Sols 31/01/2026 Variable NatWest Int Sols 31/01/2026 Variable First-time buyerHome mover		5.39% variable (Base Rate plus 0.14% for up to 35 Years)	N/A	60%	First-time buyer, Moving home	5.6% APRC		Check eligibility View details		loading Fetching your data...
NatWest 31/01/2026 Variable NatWest 31/01/2026 Variable First-time buyerHome mover		5.39% variable (Base Rate plus 0.14% for up to 35 Years)	N/A	60%	First-time buyer, Moving home	5.6% APRC		Check eligibility View details		loading Fetching your data...
CASHBACK Barclays Mortgage 2 Years Variable Barclays Mortgage 2 Years Variable First-time buyerHome moverRemortgaging	CASHBACK	5.4% variable (Base Rate plus 0.15% for up to 40 Years)	N/A	60%	First-time buyer, Moving home, Remortgaging	5.6% APRC	Eligible customers can receive up to £250 cashback on completion. T&Cs apply.	Check eligibility View details		loading Fetching your data...
Nationwide Building Society 2 Years Variable Nationwide Building Society 2 Years Variable Home mover		5.44% variable (Base Rate plus 0.19% for up to 40 Years)	N/A	75%	Moving home	7.8% APRC		Check eligibility View details		loading Fetching your data...

loading

Prev

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99

Next

CompareClear

What is the Bank of England base rate?

The BoE base rate is the interest rate that commercial banks pay when they borrow money from the Bank of England. The rate is based on economic conditions within the UK and is decided every 6 weeks by the BoE’s Monetary Policy Committee. The committee’s goal is to stimulate the economy to keep the country’s inflation rate as close to 2% as possible.

Banks tend to charge the BoE base rate when lending to each other. If the rate goes up, these extra costs are passed on to customers via rate rises across all products.

The interest rate on tracker products will rise automatically, but the banks tend to manually increase the rates on all other types of loans too.

The silver lining is that savings rates also tend to increase if the Bank of England base rate rises, helping those with plenty of money in the bank to cope with their additional mortgage interest.

How often will the tracker rate change?

The mortgage tracker rate will change when the Bank of England decides to change its base rate.

The BoE’s Monetary Policy Committee meets 8 times a year to debate this issue. The Bank of England base rate is currently 5.25%.

Types of tracker mortgage

There are other types of variable-rate mortgages, but only tracker mortgages are based on economic conditions.

Some mortgages adopt a tracker rate for a fixed introductory period, before reverting to the lender’s standard variable rate. Others will let you keep the same tracker rate for the entirety of the mortgage term. These are called lifetime tracker mortgages. The longer your tracker rate is fixed for, the higher it tends to be.

What is the difference between a tracker, variable and fixed mortgage?

Both tracker and variable mortgage rates are subject to change during your mortgage term. However, tracker rates are tied to the BoE’s base rate, while variable mortgage rates are set by the mortgage lender and can change at any time. This means that tracker mortgages can often work out to be cheaper than variable mortgages.

With a fixed term mortgage the interest rate stays the same for an agreed period of time. The fixed period is typically between 2 and 5 years, although some lenders may go up to 10 or 15 years.

Why would you choose a tracker mortgage?

When the BoE base rate is low, as it has been in recent times, your monthly mortgage repayments will be more affordable. If you believe it’s likely to drop in the near future, you could benefit from an extremely cheap mortgage.

Many of these mortgages allow you to overpay without a penalty charge. Doing so will allow you to clear your mortgage debt quicker, and this should be easier when your interest rate is low.

If you’re an individual whose income tends to be highly affected by interest rates, and you have the earning power to cope with potential interest rate rises, a deal like this could appeal.

Why would you avoid a tracker mortgage?

If you don’t have a lot of disposable income, and would struggle to cope financially if your mortgage payments went up, it’s best to avoid a tracker mortgage.

Indeed, many people prefer the certainty provided by a fixed rate mortgage, as this makes it easier to stick to their household budget without falling into debt.

Pros and cons of tracker mortgages