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Product focus: Tracker mortgages

Product focus: Tracker mortgages

Category: Mortgages

Updated: 07/11/2011
First Published: 07/11/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Variable tracker rate mortgages are a popular choice among borrowers at the moment, due to bank base rate remaining at an all time low of 0.50% for the past 31 months. Here is a selection of some of the current best short-term tracker rate mortgages.

Chelsea Building Society

  • This variable tracker product offers a rate of 1.99% to 31 December 2013 (Bank base rate plus 1.49% for 25 months).
  • The maximum loan-to-value is 70% and purchase and remortgage customers can borrow between £25,001 and £1 million.
  • A fee of £1,495 is payable.
  • This deal allows borrowers to make overpayments of up to 10% of the mortgage advance.

first direct

  • This deal offers a variable tracker rate of 2.08% (Bank base rate plus 1.58%) for two years.
  • The maximum loan-to-value is 65% and customers can borrow between £30,000 and £1 million.
  • An arrangement fee of £1,499 is payable.
  • The product is available to purchase and remortgage customers, although free legal fees are only offered to those remortgaging.
  • Flexible features such as overpayments and payment holidays are also offered to all borrowers.

NatWest Mortgage Services

  • This product offers a variable rate of 2.19% to 31 March 2014 (NatWest bank base rate plus 1.69%).
  • The maximum loan-to-value is 50% and the minimum advance for purchase and remortgage borrowers is £25,000.
  • An arrangement fee of £999 is payable.
  • Remortgage borrowers can enjoy free legal fees and a free valuation.
  • There is also the opportunity to make overpayments of up to 10% of the outstanding balance.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.