Definition
Many UK trackers follow Bank Rate plus a fixed margin, although the product terms define the actual reference and any floor or ceiling. Payments can rise or fall when the tracked rate changes. ERCs and overpayment rules vary.
Practical example
A tracker priced at Bank Rate plus a margin changes after movements in the tracked rate according to the lender's terms.
Why it matters
Check whether the household budget can absorb payment increases and whether switching flexibility is important.
UK mortgage rates explainedSource and review
Reviewed 16 July 2026. Product criteria and rules can change.
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