If you’re exploring mortgage options for the first time, you’ve likely come across the term tracker mortgage. This type of mortgage works differently from fixed-rate products and can be a good fit in certain situations – but it’s not right for everyone.

Here’s what you need to know about tracker mortgages in Manchester and how they work.

How does a tracker mortgage work?

A tracker mortgage follows, or “tracks”, the Bank of England base rate. Your lender charges interest based on that rate, plus a set percentage.

For example, if the base rate is 1% and your lender charges 1% above that, your total interest rate would be 2%. If the base rate goes up or down, your monthly payments will go up or down with it.

Unlike fixed-rate mortgages, where your payments stay the same each month, tracker rates can change over time, sometimes in your favour, and sometimes not.

Is a tracker mortgage right for me?

That depends on your outlook and how comfortable you are with changing payments. When the Bank of England rate is low, tracker mortgages can be a cost-effective option. You could benefit from lower monthly payments compared to a fixed deal.

However, if the base rate rises, your repayments will increase too. That means it’s important to plan ahead and make sure you could still afford your mortgage if interest rates were to climb.

Some tracker mortgages come with a cap or limit on how high the rate can go, but others don’t, so make sure you understand the terms before choosing this type of product.

Why do people choose tracker mortgages?

  • You could pay less than on a fixed-rate deal when interest rates are low
  • There’s often no early repayment charge after the initial period ends
  • You benefit from falling interest rates, which isn’t the case with a fixed mortgage

That said, a tracker mortgage in Manchester isn’t always the most stable option. If you’re on a tight budget or prefer knowing exactly what your payments will be, a fixed rate may feel more secure.

Choosing the Right Mortgage in Manchester

There are many different types of mortgages available, and what works well for one person might not suit another. Tracker mortgages are just one of the many options you can consider as a first time buyer or home mover in Manchester.

As a mortgage broker in Manchester, we’ll talk you through what each type of mortgage means for your monthly payments, long-term flexibility and overall affordability. We’ll also look at how each product matches up with your income, deposit and financial plans.

Whether you’re buying a property as a first time buyer in Manchester, moving to a new one or thinking about a remortgage, we’re here to help you weigh up the options and choose what’s right for you.

Date Last Edited: June 18, 2025