Best Buy Tracker Rate Mortgages

A tracker rate mortgage is a type of variable rate mortgage that follow the movements of another rate. The most common tracker rate mortgage follows the Bank of England Base Rate. Tracker mortgages don't exactly match the rates they track, but are at a usually offered at a set margin above that rate. For example if the base rate is 0.25% and your mortgage deal is offered at 1.5% over base your mortgage rate will be 1.75%. Tracker deals are usually available over a fixed period of time, for example 2- 5 years. After this time if you don't remortgage you'll be moved you're your lender's standard variable rate. However, you could opt for a lifetime tracker, which follows the base rate throughout the entire term of your mortgage.

Why speak to an adviser?

Before opting for a tracker rate mortgage it's important to speak with an independent mortgage expert. Our advisers at John Charcol will be able to assist you in understanding what would happen if rates did rise and assess whether you would be able to afford for your monthly mortgage repayments. If you couldn't then we'll help suggest a mortgage better suited to your needs.

 Current best tracker rate mortgage deals:

Initial Rate
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Total amount of credit
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Monthly repayments
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Scheme fees
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Total amount payable
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Overall rate
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Max Loan to value 60%: 2 Year 1.18% Tracker. Purchase Only. Available to loans between £500,000 - £2,000,000.
Initial Rate
1.18% - Bank Base Rate plus 0.93% for 2 years then 3.74% Variable for term
Total amount of credit
£1,020,000
Monthly repayments
£3,926
Scheme fees
£1,499
Total amount payable
£1,510,878
Overall rate
3.40% APRC

Fees and charges:

Booking Fee£0
Arrangement fee£1,499
Valuation fee£0
Other fees£0
Cashback£0

Flexibility:

Overpayments allowed?25% per annum
Early Repayment Charges£80, plus (1% in years 1-2) of balance repaid

Other info:

Exit fee£115
Basic legalsPayable
Special DealFree valuation
Call now for more information: 0344 346 3672
Representative example A mortgage of £1,020,000 payable over 25 years on a repayment basis, initially on a tracker rate for 2 years at 1.18% (0.93% above Barclays Bank Base Rate, currently 0.25%) and then on a variable rate of 3.74%(3.49% above Barclays Bank Base Rate, currently 0.25%, which will not go below a floor of 3.49%) for the remaining 23 years would require 24 payments of £3,926.18 and 276 payments of £5,126.94. The total amount payable would be £1,510,878 made up of the loan amount plus interest (£489,264) and fees (£1,614, which includes exit fees of £115). The overall cost for comparison is 3.40% APRC representative.
Max Loan to value 60%: 5 Year 1.89% Tracker
Initial Rate
1.89% - Bank of England Base Rate plus 1.64% for 5 years then 3.74% variable tracker for term
Total amount of credit
£270,000
Monthly repayments
£1,130
Scheme fees
£1,019
Total amount payable
£389,742
Overall rate
3.10% APRC

Fees and charges:

Booking Fee£0
Arrangement fee£999
Valuation fee£0
Other fees£20
Cashback£0

Flexibility:

Overpayments allowed?Unlimited
Early Repayment ChargesNo early repayment charge but a fee of £65 is payable when the mortgage is redeemed

Other info:

Exit fee£65
Basic legalsPayable
Special DealFree valuation. Free legal service for remortgages only.
Call now for more information: 0344 346 3672
Representative example A mortgage of £270,000 payable over 25 years on a repayment basis, on a tracker rate for 5 years at 1.89% (1.64% above Bank of England Base Rate, currently 0.25%) and then on a variable rate of 3.74% for the remaining 20 years would require 60 payments of £1,130 and 240 payments of £1,336.91. The total amount payable would be £389,742 made up of the loan amount plus interest (£118,658) and fees (£1,084 which includes the exit fee of £65). The overall cost for comparison is 3.10% APRC representative.

Legal

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.

John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.