Head of Content
Mortgage Advisor & Director
What is a three-year tracker mortgage?
Tracker mortgages are a type of variable rate mortgage. They typically follow a percentage above the Bank of England base rate, which is currently set at 0.1%.
A three-year tracker mortgage is a type of tracker deal that lasts for three years before reverting to the lender's Standard Variable Rate (SVR) or another rate.
Short term tracker mortgages generally offer a lower margin above the base rate, with higher margins above the base rate for longer-term tracker mortgages.
Our team of experienced advisors have helped many people like you to get the best deal possible on their three-year tracker mortgage. Let our team find your perfect mortgage today. Complete our simple online form now, and we promise to make your mortgage journey as stress-free as possible!
How do three-year tracker mortgages work?
As a type of variable mortgage, tracker mortgages are subject to rate fluctuations which means you will pay more or less on your monthly repayments should the rate that is being tracked change. If you are more comfortable with paying the same each month, a fixed-rate mortgage may be better suited to you.
What the advantages of a three-year tracker mortgage?
As the rate is variable, you will benefit from any reductions to the rate being tracked, meaning that your monthly payments may reduce. Introductory variable rates can be some of the lowest rates available on the market.
Many tracker mortgages will permit you to make overpayments of up to 10% of the outstanding mortgage balance annually without charging an early repayment charge.
Tracker mortgage arrangement fees can be lower than for other mortgage types.
Some lenders offer a 'fix and switch' option, which means if the rate increases, you can switch to one of their fixed rates without being penalised.
What are the downsides of a three-year tracker mortgage
Most introductory tracker rates will have an early repayment charge if you remortgage or repay the mortgage in its entirety during the initial period.
With a tracker mortgage, you are not protected from interest rate increases in the BoE base rate.
What is a tracker mortgage collar rate?
Many tracker mortgages include a collar rate, which is a minimum rate that can be charged, meaning that the rate will not reduce further than the collar rate. If the base rate falls, if you've already hit the collar rate on your tracker mortgage, then your payments will not reduce any further.
How can I get a three-year tracker mortgage?
At Teito, we are a whole-of-market mortgage broker meaning that we have access to more than 20,000 mortgage deals, including the best tracker mortgage options. We work with over 100 lenders to help you find the perfect mortgage. Get started on your mortgage journey today by completing our straightforward online form.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
