Tracker mortgage

What is a tracker mortgage?

Unlike a fixed rate mortgage, a tracker rate mortgage has a variable interest rate that tracks the Bank of England (BoE) Base Rate – also known as the Bank Rate. This means the interest on your repayments can go up or down in line with any Base Rate changes.

For example, if the base rate drops by 0.5%, your interest rate will also drop by 0.5%. Similarly, if interest rates rise, your repayments will also go up.

Most tracker mortgages come with an introductory rate that lasts between one and five years. Though some lenders may offer a longer term rate that lasts the full length of your mortgage term. You can weigh up your options when you apply.

Why apply for a tracker mortgage

Sometimes offers lower introductory rates

Introductory rates on tracker mortgages may be lower than some fixed rate mortgage deals.

Pay less if the base rate goes down

If the Bank of England Base Rate drops, your interest and monthly repayments will also fall.

Make overpayments

Some trackers allow overpayments without early repayment charges. This could be handy if you have some extra cash and want to pay more off your mortgage.

Is a tracker mortgage right for me?

While there are benefits to a tracker mortgage rate, there are also potential drawbacks to bear in mind:

  • Monthly payments can go up as well as down
    If the base rate increases, your monthly payments will rise too. So, you should factor this in to how much you can afford to borrow.
  • Risk of uncertainty
    We will always get in touch before we make an increase to your mortgage payments. However, we won’t know if there will be an increase or decrease until the Bank of England announces it.
  • May be unable to take advantage of low rates
    Some lenders may include a cap that stops the rate dropping too low if the base rate drops below a certain point. At Lloyds Bank, we do not put caps on any of our tracker mortgages.

Ready to apply

See how much you could borrow

Use our mortgage calculators to work out how much you could borrow. Explore what your monthly repayments on a tracker mortgage rate may look like.

Use our mortgage calculator
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Get an Agreement in Principle

Confirm how much you could be eligible to borrow before you apply for a tracker mortgage with an Agreement in Principle.

Get an Agreement in Principle

Club Lloyds tracker rate mortgage offers

Club Lloyds account holders can enjoy an exclusive 0.20% discount on their initial mortgage rate.

Explore Club Lloyds offers

Want to move from a fixed to a tracker rate?

Switch to a tracker mortgage

Already have a fixed rate deal with us? No problem. You can apply to switch from a fixed rate to a tracker rate up to four months before your current deal ends.

Switch to a new deal

Remortgage to Lloyds Bank

Looking to remortgage from a different lender? No problem. We can help you take the necessary steps to remortgage to a Lloyds Bank tracker mortgage.

Learn more about remortgaging

You could lose your home if you don’t keep up your mortgage repayments

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