Tracker Mortgages

What are tracker Mortgages?

Tracker Mortgages are a type of variable rate mortgage where your interest pay rate tracks at a set margin above an index rate. The index rate that most tracker mortgages follow is the Bank of England Base Rate of interest, otherwise known simply as the “Base Rate”. However, not all tracker mortgages track the Bank of England Base Rate. Some track other index rates – such as the LIBOR rate (London and Interbank Offer Rate).

Please note : Other index rates may be more volatile than the Bank of England Base Rate – so it is important to be aware of and understand the index rate which your tracker mortgage is linked to.

Please also not : The Bank of England Base Rate is reviewed on a monthly basis by the Bank of England monetary policy committee, who will either keep the base rate the same, or decide to increase or decrease it.

Example of a Tracker Mortgage deal :

An example of a Tracker Mortgage is Bank Base Rate (BBR) +2.5% for 2 years, then reverting to Standard Variable Rate (SVR) thereafter.

This can simply be written / advertised as : Tracker Mortgage at BBR +2.50% for 2 years.

What is a Term Tracker Mortgage?

A 'term tracker' is a type of tracker mortgage where the tracker rate applies for the full term of your mortgage. i.e. if you have taken your mortgage over a 20 year term, the tracker rate will apply for 20 years.

eg. BBR+2.75% Term Tracker In this example your mortgage interest pay rate would stay at 2.50% above Bank Base Rate for the full term of your mortgage.

Do Tracker Mortgages fluctuate (go up and down)?

Yes. A tracker mortgage is a type of Variable Rate mortgage – and therefore can go up or down. If the interest rate your tracker mortgage follows increases eg. The Bank of England Base Rate goes up – then your interest pay rate and therefore your monthly mortgage payments will increase.

Is a Tracker Mortgage right for me?

There is a no single mortgage product or type of mortgage that is right for everyone – and your EFS mortgage adviser would need to discuss your specific needs, circumstances and attitude to risk (i.e. attitude to potential risk in terms of interest rate increases vrs decreases). For instance, if you were concerned about potential increases in interest rates – a tracker mortgage would NOT be the most suitable type of mortgage for you; a fixed rate mortgage or capped rate mortgage would.

For more information regarding tracker mortgages, please fill out the form below and one of our mortgage advisers will be happy to contact you.


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Commercial Mortgages and Buy to let mortgages are not typically regulated by the FSA


We do not charge a fee for mortgage advice. A fee based option is available of typically 2% of the mortgage amount.
For example on a loan of £25,000 the fee would be £500

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