Fixed rate and tracker rate mortgages
The right mortgage for you
We offer fixed rate and tracker rate mortgages.The table below provides a comparison of the features and benefits of both types of mortgage.
Fixed and tracker mortgages: features and benefits
|
Fixed rate mortgages |
Tracker rate mortgages |
| At a glance |
No surprises
Fixed interest rate, fixed payments – you always know exactly where you are. |
Benefit from low Bank of England base rate
Payments will go up and down in line with the Bank of England base rate. |
| Description |
Your interest remains the same for an agreed period, and you pay exactly the same per month until the end of your fixed period. If the Bank of England base rate increases, you will still pay the same fixed rate for the deal period. Similarly if the Bank of England base rate falls you won't see the benefit. If you're prepared to take the chance of rates falling, you might want to consider a tracker rate deal. |
With a tracker rate mortgage, your interest rate is a fixed percentage above the Bank of England base rate. This means your payments will go up and down in line with the rate changes.
If the Bank of England base rate is 0.00% or less during the tracker period, the rate you pay will be 0.00% plus the agreed set percentage above the base rate. This is known as the tracker floor. |
| Overpayments |
Yes, up to £500 per month with no penalty. More about overpayments. |
Yes, up to £500 per month on some, unlimited on others. More about overpayments. |
| Mid deal |
Changing your mortgage before the end of your fixed term will incur an early repayment charge. |
Switch and fix to one of our fixed rates at any point during your deal with no early repayment charge. |
| At deal end |
Reverts to Base Mortgage Rate or Standard Mortgage Rate depending on when the deal was secured. |
Reverts to Base Mortgage Rate or Standard Mortgage Rate depending on when the deal was secured. |