What is a tracker mortgage?
A tracker mortgage is a type of variable rate mortgage. Instead of giving you a fixed rate for a set period, the lender’s rate usually moves in line with an external rate, often the Bank of England base rate, plus a set percentage.
This means your monthly payments can rise, fall or stay the same depending on how that tracked rate changes.
Tracker mortgages can appeal to borrowers who want a lower starting rate or more flexibility, but they are not right for everyone. Because the rate can change, it is important to understand the possible impact on your monthly budget.
By speaking to us you will: have
- Clear advice on how tracker mortgages work
- Help comparing tracker and fixed remortgage options
- Guidance on rates, fees and early repayment charges
- Support understanding whether a tracker mortgage may suit you
- Appointments by phone, video call
How does a tracker mortgage work when you remortgage?
When you remortgage onto a tracker mortgage, you are replacing your current deal with a new mortgage that tracks an external rate.
For example, the mortgage may be set at a fixed margin above the Bank of England base rate. If the base rate rises, your mortgage rate is likely to rise too. If the base rate falls, your mortgage rate may also fall.
This can make tracker remortgages attractive in some market conditions, especially if borrowers think rates may reduce over time. However, it also means there is less certainty over future monthly payments than with a fixed rate mortgage.
When reviewing a tracker remortgage, it is important to look not only at the starting rate, but also at fees, early repayment charges and whether your budget could cope if rates were to rise.
Tracker vs fixed remortgage
When remortgaging, it’s worth comparing the initial cost of a tracker mortgage against the certainty of a fixed rate deal. Some trackers offer greater flexibility, including the ability to switch mortgages without early repayment charges.
At Your Mortgage Expert, we’ll compare lenders, rates and fees to help you find a suitable mortgage based on your budget and future plans.
For a more detailed comparison, read our guide to fixed rate vs tracker mortgages.
Would a tracker remortgage suit me?
A tracker remortgage may be worth considering for borrowers who:
- Are comfortable with rates and payments changing
- Want more flexibility than some fixed rate deals offer
- Believe rates may fall in the future
- May want to switch again or move home without heavy penalties
- Have room in their budget if payments were to increase
Tracker remortgages are not always the cheapest or best option in the long run, but they can work well in the right circumstances.
What are the risks of a tracker mortgage?
The main risk with a tracker mortgage is that your monthly payments can go up.
If the tracked rate rises, your mortgage payments are likely to rise too. That can make budgeting harder than with a fixed rate mortgage, especially if your household finances are already tight.
Other things to think about include whether:
- Your budget could cope with payment increases
- The deal has any fees
- Early repayment charges (ERCs) apply
- A low starting rate could become less attractive if rates rise
A tracker mortgage can be a sensible option for some borrowers, but it only works when the risks are clearly understood from the start.
Tracker mortgage rates and fees
Tracker mortgage rates are usually set as a margin above an external rate, often the Bank of England base rate.
For example, the lender may offer a deal that tracks at a certain percentage above base rate for a set period. The total rate you pay will therefore depend on both the lender’s margin and the tracked rate itself.
As well as the headline rate, it is important to look at:
- Arrangement fees
- Valuation or legal costs
- Whether early repayment charges apply
- The overall cost over the period you expect to keep the mortgage
The cheapest starting rate is not always the most suitable option if the fees are high or the product does not fit your plans.
Why speak to Your Mortgage Expert about tracker remortgages?
At Your Mortgage Expert, we research and compare tracker mortgages from a wide range of lenders, including specialist providers you can’t approach directly. We’ll consider the interest rate, fees, early repayment charges and flexibility to find a mortgage that suits your circumstances.
Your dedicated mortgage adviser will review your existing deal, recommend a suitable mortgage and manage your remortgage application through to completion. We help clients throughout the UK by telephone and video call, with face to face appointments available locally.
This page was last updated in November 2026
Frequently Asked Questions
What is a tracker mortgage?
What is a tracker remortgage?
How does a tracker mortgage work?
Is a tracker mortgage a good idea?
Is a tracker remortgage better than a fixed rate?
Do tracker mortgages always follow the Bank of England base rate?
Who might a tracker remortgage suit?
Should I choose a tracker or fixed remortgage?
Should I use a mortgage broker for my tracker remortgage?
How can Your Mortgage Expert help with my tracker remortgage?
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Buy to Let mortgages and Commercial Lending are not usually regulated by the Financial Conduct Authority.