Quick links to latest articles:

Could a lifetime tracker mortgage save you money?

By Joel Stanier

17 February2021

House for sale via Halifax When it comes to choosing a new mortgage deal, the choice between a tracker or a fixed-rate mortgage can be a difficult one. On the one hand, tracker mortgages tend to be the cheapest option at any given time, but the mortgage payments can increase; fixed-rate mortgage payments can't change, but they tend to be a bit more expensive to begin with. So which do you choose?

Then you have to think about how long you want your deal to last for - two years, five years, or even longer?

Many mortgage providers even offer lifetime tracker deals - with interest rates that 'track' above the Bank of England's base rate for as long as the mortgage takes to repay. But is it a good idea to commit yourself to one deal for so long?

As with all things financial, it really depends on your circumstances, says a mortgage expert at Think Money.

"When you choose any mortgage deal, you're effectively hoping that it will work out better for you than other mortgage deals available at the time. Choosing a 2-year tracker deal might work out better for you if there are better deals available after those two years - but then again, there might not be.

"Lifetime tracker deals may be a good idea for people who don't plan on moving and don't want to have to worry about renewing their deal every few years. In fact, some people may be happy to pay slightly more for that convenience.

"But anyone concerned about their interest rates increasing in the future might want to consider a fixed-rate deal, which protects against this. The rates are usually higher than tracker mortgage deals to begin with, but the homeowner will at least know exactly how much they're paying each month."

Image iStockPhotos / EdStock

Fill in our form to find your mortgage solution

About your mortgage
Amount required:
Your information
Title: First name: Surname:
Telephone 1: Telephone 2: Email:
By continuing, I agree to the privacy policy

Tags: mortgage, tracker, tracker mortgage, lifetime tracker, life time tracker, tracker rate mortgage, fixed rate, mortgages, mortgage rates

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.

All About Money Limited © 2013. All rights reserved. 42 Boston Rd, Sleaford, Lincolnshire NG34 7ER.