Tracker Mortgage

Tracker Mortgages are one of the newest available and they are exactly what you would think.

They “track” the Base Rate set by the Bank of England at an agreed rate. The interest on the mortgage is charged as a set % (normally 1-2% above base rate) and remains constant for the fixed term period agreed between the lender and borrower.

Tracker mortgages can also track the base rate for the duration of the mortgage, and some lenders promise the margin between the base rate and the rate you wil pay will rise above a set level.

Latest News on self certification mortgages:

Last week The Co-operative Bank announced the launch of their new two year tracker mortgage, offering an initial APR of just 5.14%.

The mortgage, which costs £999 to set-up, tracks 0.61% below the Bank of England base rate for the first two years. Thereafter, the mortgage will follow The Co-Operative Banks standard variable rate (currently 7.5%). The cost of an early release from the mortgage is £140.

The Co-operative tracker mortgage is designed to give customers the benefit of having a variable mortgage rate below the Bank of England’s base rate for the initial two years, whilst also offering customers a competitive APR.

Abbey expanded its existing mortgage range, including their reduced broker-only deals. They have launched two new 2-year tracker mortgage deals:

•    The first mortgage is no fee on up to 90% LTV with a rate of 5.99%
•    The second  is a ‘loyal mover’ mortgage offers a rate of 5.84% for a £399 fee. However, this is only for current Abbey customers who are looking to remortgage.

In addition, three Abbey mortgages have also seen their seen rates come down due to the recent slump in bank swap rates:
•    The 2-year fixed mortgage with a £999 fee has seen its rates reduced to 5.84%
•    The 2-year fixed remortgage with the same fee is now at 6.04%.
•    The 2-year fixed mortgage with a £1499 fee is now at 5.74%.

All of these Abbey mortgages are only available through brokers.

In addition, the broker-only 2-year fixed tracker mortgage, with a rate of 5.49%, has seen a fee cut to £799 and the direct to consumer 2-year mortgage with a fixed rate of 5.84% is now available with a fee of £499.
Nici Audhlam-Gardiner, head of Abbey Mortgages, says: “Abbey is committed to remaining competitive and these new deals reflect that, given recent downward movements in swap rates”.

If you are looking for this type of mortgage, HSBC mortgages are specially interesting. The HSBC tracker interest rates are quite attractive!

For more advice on tracker mortgages, we suggest that you talk to a mortgage advisor.