Compare 3-Year Tracker Mortgages

A 3-year tracker mortgage isn’t the most common type of home loan. Still, it can be a flexible option if you want to benefit from potential interest rate reductions without necessarily being locked in. Here, we’ll explain exactly how 3-year trackers work, how to compare the best 3-year tracker mortgage rates, and what else to consider.

What is a 3-year tracker mortgage?

A 3-year tracker mortgage is a type of variable-rate mortgage in which the interest rate moves in line with the Bank of England base rate for a fixed introductory period of 3 years. These loans usually follow a set margin above the Bank of England (BoE) base rate.

How is the rate set?

Lenders set your rate based on the BoE base rate plus a set margin (e.g., BoE base rate + 1%). If the base rate changes, your payments will automatically adjust.

After the three-year introductory period ends, your mortgage typically reverts to the lender’s Standard Variable Rate (SVR), unless you switch or remortgage.

This type of deal sits between shorter trackers (2-year) and longer ones (5-year), offering a mid-range option for borrowers who want flexibility without locking in for too long.

Compare the best 3-year tracker mortgage rates

Tracker rates change frequently, sometimes weekly or monthly, depending on market conditions and lender pricing strategies. To find the best 3-year tracker mortgage rates available today, you can use our free comparison tool below.

The tool is pre-set to show 3-year tracker mortgage products, making it easy to compare margins, fees, and introductory incentives in real time. Simply enter your prospective mortgage details to find out how much your repayments could be.

Advantages and disadvantages

Like all variable-rate products, 3-year trackers come with pros and cons. Here’s how they compare to other introductory periods and mortgage product types:

Advantages of 3-year trackers

• You can benefit if rates fall: Your payments should automatically reduce if the Bank of England base rate drops (providing there’s no ‘collar rate’).

• More flexibility than a 5-year tracker: A 3-year period gives you a shorter commitment, which works well if you expect to move or remortgage sooner.

• Lower early repayment charges (ERCs): Many tracker mortgages have lower ERCs than fixed-rate deals, and some have none at all.

• Potentially lower rates: Tracker margins can be cheaper than equivalent 3-year fixed rate mortgages, depending on market sentiment.

• Potential to switch: 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.

Disadvantages of 3-year trackers

• Risk of rising payments: The base rate can move in both directions, and if rates rise, so will your monthly repayments.

• Less stability than a fix: Borrowers who value repayment predictability for budgeting may prefer a 3-year fixed-rate mortgage. Trackers leave you more exposed to the underlying BoE base rate.

• Not as cheap as 2-year trackers: 3-year deals sometimes have slightly higher margins than 2-year tracker mortgages.

• Reversion to SVR: If you don’t remortgage in time, moving onto your lender’s SVR can mean significantly higher rates.

• Difficult to find deals: 3-year tracker mortgages tend to be less common than 2 or 5-year trackers (partially due to behind-the-scenes ‘swap rates’), and you’ll often need an experienced broker to show you all the options.

How to get a 3-year tracker mortgage

Here are some simple steps to follow to help you get the best 3-year tracker mortgage available right now:

1. Compare today’s 3-year tracker rates: Use our free comparison tool to review real-time tracker rates from high-street and specialist lenders.

2. Speak to a specialist broker: Trackers vary widely between lenders, especially regarding margins, fees, and ERCs. A broker can help you find the best option, click ‘Enquire Now’ when you see a deal you like to access support.

3. Submit your application: Your broker will prepare the paperwork and present your case to the lender that best fits your income and property profile.

4. Complete and secure your rate: Once approved, you can lock in the introductory margin for the full three years.

Compare 3-year tracker mortgage rates

Get Started Compare Rates

Do all lenders offer 3-year trackers?

Not all banks offer tracker mortgages for specific time periods. For example, Nationwide currently has no 3-year tracker mortgage. Some lenders may only provide 2-year or 5-year tracker options, depending on their product strategy.

However, certain lenders occasionally choose to innovate and expand their loan offering, and several major lenders are known to occasionally offer 3-year tracker mortgage products. Sometimes these mortgages aren't advertised widely, so finding them is best done through a broker.

Tips for finding 3-year tracker mortgages

You may find that, although mainstream lenders like Halifax and Lloyds Bank are open to 3-year tracker mortgages, because the market shifts regularly, they'll keep these products reserved for intermediaries (brokers) rather than pulling and reintroducing them.

Because availability changes frequently, the easiest way to find up-to-date lenders offering 3-year tracker mortgages is to use our free mortgage rate comparison tool, which automatically filters results for you.

It’s also worth noting that even if no 3-year trackers are currently available, most trackers have no early repayment charges, so you could theoretically take out this type of mortgage with a 5-year or longer introductory rates period and exit the agreement after three years to get the same experience.

Why choose Money Helpdesk for your tracker mortgage?

We work with brokers who specialise in tracker mortgages and variable-rate products across all timeframes, helping you find the best arrangement for your situation.

Here’s why people choose Money Helpdesk to help arrange the best 3-year tracker mortgage:

• Access to exclusive 3-year tracker mortgage deals

• Free initial chat with no obligation to proceed further

• Our advisors are 5-star rated on leading review platforms

• Whole-of-market rate comparisons to find today’s best rates

If you’d like to compare rates for free or have a brief discussion with a broker to explore the latest 3-year tracker mortgage deals, you can get started here.