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Tracker mortgage
A tracker mortgage follows the Bank of England Base Rate. This means your monthly repayments could go up or down during your mortgage deal.
Find out if a tracker mortgage could be the right option for you.
What is a tracker mortgage?
A tracker mortgage is a type of mortgage with a variable interest rate. This means your interest rate and monthly repayments can change during the term of your deal.
Usually, tracker mortgages follow the Bank of England’s Base Rate, otherwise known as the Bank Rate. This is used to help control inflation and stop prices rising too quickly.
Unlike a fixed rate mortgage, if the base rate goes up during your term, so will your mortgage interest rate. If the rate drops, your mortgage repayments will too, as it won’t include as much interest.
How a tracker mortgage works
Is a tracker mortgage right for me?
You could lose your home if you don’t keep up your mortgage repayments
What happens if your rate changes?
Whether it goes up or down, we’ll review our rates once the Bank of England announce any Base Rate changes. You’ll usually see this change from the start of the new month following the announcement. We’ll write to you to let you know about any changes before they happen.
Want to see what a potential Bank of England Base Rate change could do to your monthly repayments? Use our Rate change calculator to work out what you’d need to pay.
Not sure if a tracker mortgage is right for you?
A tracker mortgage isn’t your only option for buying a house. If you’re looking for a bit more stability with your mortgage rate, you might want to consider a fixed rate mortgage. Unlike a tracker mortgage, your interest rate will stay the same for a set period of years.
Frequently asked questions
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Yes, you can switch to a tracker mortgage once your current Halifax mortgage deal has ended. You might be able to switch before your current deal is up - but you could have to pay an Early Repayment Charge.
With a different lender? You can still make the switch to a Halifax tracker mortgage by remortgaging to us.
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Some lenders have tracker mortgages that come with a cap or ‘collar’. This stops your repayments going too low if the Bank of England base rate drops under a certain point. Halifax do not currently have caps on our tracker mortgages.
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Leaving a tracker mortgage works much the same as other mortgage types. This means that you might have to pay an Early Repayment Charge to leave your deal early. Some lenders will let you move onto a fixed rate deal without any repayment charges – always read the details of your deal before applying.
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