If you’re considering a tracker mortgage you may be wondering which length of term is best. In this article we compare 2-year tracker deals with longer term trackers, as well as non-tracker mortgage products to help you decide which is the right mortgage type for you.
What is a 2-year tracker mortgage?
A 2-year tracker mortgage is a tracker deal with an introductory rates period of two years. Tracker mortgages are typically linked to the Bank of England base rate, meaning your interest rate will mirror changes in the base rate if it shifts at any time during the deal's 2 year initial rates period.
While, unlike a fixed-rate, your interest rate can fluctuate up or down during the initial term, you won’t always be bound to a 2-year tracker for the full length of the agreement. However, some tracker mortgages do charge a fee if you remortgage before the end of the 2-years, so be sure to check the terms carefully.
Compare 2-year tracker mortgage rates
To find the best 2-year tracker mortgage rates you can compare deals with our free mortgage sourcing tool in real time below. If you see the tracker deal you’re looking for simply click on the ‘enquire now’ button to speak to one of our experienced brokers about the suitability of this deal for your needs.
You can also speak to one of our experienced whole-of-market brokers to discuss whether a tracker deal is the most suited to review personal circumstances. This will ensure you don’t overlook any other mortgage types that may be more beneficial to you.
This tool has been set to display 2-year tracker deals by default but can be manually changed to show other mortgage types if you wish to compare products.
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Advantages and disadvantages
If you have a bit of flexibility in your budget, a tracker deal can be the best way to take advantage of lower interest rates, especially in a climate where you expect the Bank of England base rate to fall. Tracker rates are also typically cheaper than their equivalent 2-year fixed-rate counterparts, as you’re not paying extra for the certainty of a fixed rate.
While tracker rate mortgages can rise during the deal term, 2-years is at the shorter end of the deal spectrum. This means that even those with Early Repayment Charges (ERCs) can often switch deals with less penalties than some mortgage types if rates rise during the locked-in period.
Tracker mortgages are also available with longer terms of between 3 and 5 years, although it’s also possible to get a lifetime tracker. If you’re a little bit more confident about the stability of the mortgage market, it’s possible to get a lower interest rate on a longer tracker deal, although this is not always the case.
How to get a 2-year tracker mortgage
The length of a deal term won’t usually impact the mortgage criteria you’ll need to meet in order to secure one, unless you opt for a lifetime term. While you’ll need to meet the usual affordability and creditworthiness criteria of any mortgage, there are 2-year tracker products available from a broad array of lenders. It may, therefore, still be possible to secure this type of deal with bad credit.
Make an enquiry below to speak to a broker about your 2-year tracker options:
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Do all lenders offer 2-year trackers?
The vast majority of lenders offer 2-year tracker mortgages, yes. This is a very common deal type and term length, so you’re likely to find them with major high street lenders, such as Nationwide, Santander, Natwest and HSBC.
If you’re looking for a more specialist or subprime lender, however, you should find that they also have 2-year tracker deals available. As with any subprime options, 2-year tracker mortgage rates can be a little higher, but they are certainly available.
To find the best 2-year tracker rate mortgages available for your circumstances it’s important to compare deals from lenders across the whole market. You can use the rates tool on this page to get started.
Why choose Money Helpdesk for your tracker mortgage?
At Money Helpdesk our experienced team of advisors have access to 2-year tracker deals from the entire mortgage market, including those not necessarily available directly to the general public. They can also look at your wider circumstances to ensure that a 2-year tracker mortgage is right for you, or whether you’d be better suited to a longer term, or even a different product.
We’ve helped thousands of customers to find their perfect mortgage. Complete our simple online form today to get started!
FAQs
Some 2 year tracker products are available without ERCs, yes, meaning you can leave them at any time without paying a fee. However, many lenders do charge ERCs on 2-year tracker mortgages. However, keep in mind that fees tend to reduce the less time is left in the deal term. So, for example, ERCs would typically be lower on a deal with only 6 months left, rather than one that had just started.