Tracker rate flexibility

The rate your client pays is directly linked to movements in the Bank of England Base Rate (BBR). Each time the BBR changes, your client’s rate will change in time for their next payment (within one month).

All our tracker rate mortgages are true term products.

  • This means that if your client’s completion date is delayed, their mortgage will still run the full two year deal period
  • So, if your client completes on 7 August 2014 they will make 24 monthly payments and revert to our Standard Mortgage Rate on 1 September 2016

From 2 May 2014 there are no ERCs on our tracker mortgages meaning your client has even greater flexibility.

Tracker floor

If the BBR rate is 0.00% or less during the tracker period, the rate your client will pay will be 0.00% plus the agreed set percentage above the BBR.

  • This means the rate your client pays will never go below 0.00% plus the additional rate of their tracker mortgage
  • This is known as the tracker floor

NB: At the end of the tracker rate period your client will automatically move to our Standard Mortgage Rate (SMR). The SMR is currently 3.74% and has no upper limit or cap.

Switch and Fix

For information about the Switch and Fix option on our tracker mortgages, please click here.