Tracker Mortgage Calculator
Calculate your variable rate mortgage payments that track the base rate plus a fixed margin.
Tracker Mortgage Payment Calculator
See how your payments change as the base rate moves up or down
Your Current Rate
5.50%
Base Rate 4.50% + Margin 1.00%
How Tracker Mortgages Work: Your interest rate = Base Rate + Your Tracker Margin. When the central bank changes the base rate, your mortgage rate and payments change by the same amount.
Understanding Tracker Mortgages
How Tracker Mortgages Work
A tracker mortgage follows a base rate (like the Bank of England base rate or Federal Reserve rate) plus a fixed margin. When the base rate changes, your interest rate and monthly payment change by the same amount, either up or down.
Pros of Tracker Mortgages
- Benefit from rate cuts immediately
- Often lower initial rates than fixed
- Transparent - tied to public base rate
- No penalty for overpayments (usually)
- Good when rates are expected to fall
Cons of Tracker Mortgages
- Payments can increase if rates rise
- Budgeting uncertainty
- May have early repayment charges
- Risk of payment shock in rising rate environment
- No protection from rate increases
Rate Caps Explained
- Capped trackers: Maximum rate limit
- Collared trackers: Minimum and maximum limits
- Caps provide payment protection
- Usually come with higher margin
- Consider stress testing at higher rates