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NatWest Tracker Mortgage Overview

NatWest, a leading banking institution, offers a varied range of mortgage products to meet the diverse needs of its customers. The Tracker Rate Mortgage is one of these offerings, known for its flexibility and dynamic nature.
In this guide
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    Introduction to NatWest Tracker Mortgages

    Tracker rate mortgages are variable-rate mortgages that follow the Bank of England base rate, meaning the interest rate you pay can increase or decrease.

    NatWest tracker mortgages are crafted for a wide array of customers, including homebuyers, first-time buyers, and those looking to remortgage, demonstrating NatWest’s commitment to providing versatile mortgage solutions.

    The interest for NatWest’s tracker mortgage is variable, meaning it will rise and fall in line with another interest rate, which is typically the Bank of England’s base rate. However, it should be noted that NatWest tracker deals specifically track the National Westminster Bank Plc’s base rate.

    How Tracker Mortgages Differ from Other Mortgage Types

    Unlike fixed-rate mortgages, a tracker mortgage at NatWest offers a variable interest rate, which can result in savings when the base rate is low but also poses a risk if the base rate rises.

    About NatWest’s Tracker Mortgages

    NatWest’s suite of tracker mortgages is diverse, accommodating a broad spectrum of financial scenarios:

    • Variety in Terms: Offering different terms for tracker mortgages, NatWest caters to both short-term and long-term financial planning, allowing customers to choose a mortgage that aligns with their future goals.
    • Tailored for Various Borrowers: These mortgages are designed not just for first-time buyers who are stepping into the property market, but also for existing homeowners looking to remortgage. This flexibility ensures that a wider range of customers can find a suitable mortgage product.
    • Responsive to Market Trends: NatWest tracker mortgages are closely tied to market rates, making them a dynamic and responsive financial product. This is particularly beneficial for those who wish to take advantage of changes in the economic landscape.

    Why Choose a NatWest Tracker Rate Mortgage?

    Opting for a NatWest Tracker Rate Mortgage is a strategic choice for several specific reasons:

    • Ideal for Market-Savvy Borrowers: These mortgages are particularly suited for those who closely follow market trends and are comfortable with interest rates that respond to economic conditions. They offer an opportunity to benefit from lower mortgage rates in a declining market.
    • Adaptability to Changing Life Circumstances: NatWest’s tracker products are excellent for borrowers who anticipate changes in their financial situation or the broader economy. They offer the ability to capitalise on favourable market conditions while providing options to adjust terms as needed.
    • A Blend of Competitive Rates and Personalised Service: While offering competitive interest rates, NatWest also places a strong emphasis on personalised service, ensuring that each mortgage is structured to suit the individual needs of the borrower. This combination makes their tracker mortgage a compelling choice for those seeking both value and tailored financial products.

    These aspects highlight NatWest’s dedication to offering mortgage solutions that are not only market-responsive and competitively priced but also tailored to the evolving needs of borrowers. They demonstrate a commitment to aligning financial products with individual customer scenarios and market conditions, ensuring that each borrower finds a mortgage that resonates with their unique financial journey.

    Advantages of Opting for a Tracker Rate Mortgage with NatWest

    Opting for a NatWest Tracker Rate Mortgage offers the flexibility to benefit from lower interest rates and the best deal in favourable market conditions, coupled with the transparency of a rate directly linked to the base rate. This choice is ideal for those seeking a mortgage that adapts to market dynamics while aligning with their financial strategy.


    The rate you pay is directly linked to the Bank of England base rate, ensuring no surprises. This linkage means your mortgage rate adjusts transparently with national economic shifts. It allows for better financial planning, as you can anticipate changes in your payments based on the economic climate, providing a clear and predictable mortgage rate structure.


    The flexibility of a tracker mortgage lies in its ability to adapt to decreasing mortgage rates. When the base rate falls, so do your repayments, potentially saving you money. This feature is particularly beneficial in declining rates of interest environment, offering the chance to reduce monthly costs in real time.

    Overpayment Options

    Regarding overpayments on NatWest Tracker interest rates, it is specified that borrowers can overpay up to 20% of the outstanding balance each year without incurring an Early Repayment Charge (ERC). This feature allows for greater flexibility in managing the mortgage, as it enables customers to reduce their mortgage balance faster and potentially save on interest costs over the life of the loan.

    Mortgage Porting

    NatWest’s mortgages are generally portable, meaning you can transfer your existing mortgage tracker deal to a new property when you move home. This allows you to retain your existing mortgage balance at your current rate without incurring an early repayment charge. However, your new mortgage application must be completed prior to redeeming your current mortgage, and while you can adjust the size of your mortgage to meet your needs, additional charges and checks may apply.

    Introducing NatWest Track and Switch

    Track and Switch is an innovative option offered by NatWest, designed to provide flexibility in mortgage planning. It allows borrowers to start with a Tracker mortgage and later switch to a Fixed Rate mortgage, offering a blend of adaptability and stability.

    How It Works

    Once your mortgage has been drawn down, you can instantly switch from your Tracker mortgage to any available NatWest Fixed Rate mortgage product. This transition does not require a new credit check or scoring.

    Key Features

    • Flexibility to Switch: All Tracker products can be converted to any available NatWest fixed-rate product. this means borrowers who take out a Natwest tracker rate will be able to instantly switch to a fixed-rate mortgage if interest rates fall.

    • Avoiding Early Repayment Charges: Switching does not incur the Early Repayment Charge associated with your Tracker mortgage.

    • Applicable Fees: Any fees associated with the new Fixed Rate product will apply upon switching. Additionally, the new Fixed Rate product may include its own Early Repayment Charge.

    Who is Track and Switch for?

    Track and Switch is particularly suited for customers who initially want the flexibility of a Tracker mortgage but may consider fixing their rate later. It’s ideal for those uncertain about fixing their rate right away and comfortable with a variable rate that can result in monthly mortgage payments changing over time. This option provides a strategic approach which means you can instantly switch to a new fixed rate which enables customers to manage mortgage payments in response to personal financial circumstances and market conditions.

    Updated NatWest Tracker & Switch Offer

    NatWest has updated its Track and Switch policy to offer greater flexibility. Previously, customers had to wait 90 days before switching from a Tracker to a Fixed Rate mortgage without incurring charges. Now, from September 14th, 2023, borrowers can switch to a fixed rate at any time after their Tracker mortgage starts, providing immediate adaptability if fixed rates fall. This change enhances the attractiveness of NatWest’s Tracker mortgages, despite them being priced higher than some competitors.

    NatWest Tracker Mortgage Rates

    NatWest offers a range of tracker mortgage options designed to provide flexibility and adaptability to market changes. These mortgages are particularly advantageous during periods of low interest rates, offering potential savings to borrowers.

    • Range of Options: NatWest tracker mortgages come in various forms, catering to different needs and financial scenarios. From mortgages ideal for first-time buyers to those suitable for remortgaging, there is a solution for almost every borrower.
    • Adaptable to Market Conditions: The rates on these mortgages adjust in accordance with market trends, particularly tracking the National Westminster Bank Plc’s base rate, which often aligns with the Bank of England’s base rate. This means when rates are low, you potentially pay less in interest.

    Get a Personalised Mortgage Interest Rate

    Understanding that financial circumstances vary greatly from person to person, NatWest offers personalised mortgage rates. This approach ensures that each borrower receives a mortgage plan that is best suited to their unique financial situation.

    • Tailored to Your Financial Profile: When you apply for a tracker mortgage with NatWest, they take into account your individual financial history, current status, and future goals. This personalised assessment helps in determining the most suitable mortgage rate for you.
    • Guidance and Support: For those who may find the array of options overwhelming, the YesCanDo Money team of experts is available to guide you through the process, ensuring that you understand each aspect of your mortgage choice.
    • Dynamic Rate Adjustments: With a focus on aligning the mortgage rate with current market conditions, NatWest ensures that your mortgage remains competitive and fair throughout the mortgage term.

    These features underscore NatWest’s commitment to providing mortgage solutions that are not only competitive but also tailored to the individual needs of each customer, offering a balance between market responsiveness and personal financial requirements.

    Detailed Analysis of NatWest Tracker Rate Mortgages

    NatWest offers a range of tracker rate mortgage durations, from shorter periods for those with evolving financial landscapes to extended terms for customers desiring stability.

    Considerations of Introductory Rate and Lifetime Rate Considerations

    when selecting between an introductory rate and a lifetime tracker loan, borrowers are balancing immediate relief against long-term consistency. Introductory offers can temporarily ease budget concerns while their eventual conversion to standard rates requires careful thought; on the other hand, lifetime trackers promise rates that adapt to market fluctuations, potentially benefitting those who take a more measured approach financially.

    Mortgage Collar and Its Effects

    A ‘collar’ is a feature of some tracker rate mortgages that prevents interest rates from dropping below a set point, thus limiting their benefits as base rates fall and stabilising minimum payments, offering predictability in one’s financial planning efforts. Understanding a collar’s role is critical to managing an accommodating yet predictable mortgage that meets your expectations.

    What Happens When My Tracker Rate Mortgage Ends with NatWest?

    Once the initial tracker deal period ends, your mortgage interest rate changes to the NatWest Standard Variable Rate (SVR), meaning it could either rise or fall depending on changes to the rate of interest charged.

    The SVR is usually a much higher rate and it often does not make sense to be on. At this point, if the SVR no longer suits your mortgage needs, you have the ability to switch and move on to another rate.

    Don’t fret: we will contact you before your tracker rate ends so that we can arrange to renew it and/or make other arrangements for its renewal.

    For more information, read our SVR mortgage guide.

    Pros and Cons of a Tracker Rate Mortgage

    Tracker mortgages offer benefits like potential cost savings and flexibility but also come with the risk of interest rate variability. NatWest tracker mortgages often have lower initial rates than fixed-rate mortgages, offering savings in a low-interest rate environment. However, they can be more expensive in a rising interest rate environment and do not provide the stability of fixed monthly payments.

    Pros of a NatWest Tracker Rate Mortgage

    1. Potential Cost Savings: In a low-interest rate environment, tracker mortgages often have lower initial rates compared to fixed-rate mortgages, potentially leading to significant savings.
    2. Flexibility: The variable interest rate of a tracker mortgage can decrease if the base rate drops, potentially lowering your monthly payments. This can be particularly beneficial if market rates remain low over a period.
    3. Overpayment Opportunities: With the ability to overpay up to 20% of the outstanding balance each year without incurring an Early Repayment Charge, there’s an opportunity for quicker mortgage repayment and overall interest savings.
    4. Transparency in Rate Adjustments: The rates of interest on a tracker mortgage is directly linked to the National Westminster Bank Plc’s base rate, offering transparency in how changes to your interest rate are determined.

    Cons of a NatWest Tracker Rate Mortgage

    1. Interest Rate Uncertainty: The variable nature of the rates of interest means it can increase if the base rate goes up, leading to higher monthly payments.
    2. Potential for Higher Costs in a Rising Rate Environment: In a scenario where interest rates are increasing, a tracker rate mortgage can end up being more costly compared to mortgages with fixed rates.
    3. Lack of Fixed Payment Stability: Unlike fixed-rate mortgages, tracker mortgages do not provide the certainty of fixed monthly payments, making budgeting more challenging in a volatile interest rate environment.
    4. Market Dependence: Since the rates of interest are tied to the base rate, your mortgage is subject to external economic factors that influence this rate, over which you have no control.

    If you’re finding it challenging to decide on a NatWest Tracker Rate Mortgage or if the details seem overwhelming, don’t hesitate to get in touch with our fee-free mortgage advisors. They are here to clarify any confusion and provide tailored assistance, ensuring you make a choice that best suits your financial needs.

    Calculating Your Tracker Rate Monthly Mortgage Payments

    When calculating monthly payments for a NatWest tracker rate mortgage, remember that, unlike mortgages with fixed rates, the interest rate can change, following shifts in an external rate. Here’s a guide to help you estimate these payments:

    Step-by-Step Calculation:

    1. Determine the Tracker Rate:
      • The tracker rate is a combination of the National Westminster Bank Plc’s base rate and an additional margin specified by NatWest.
      • Example Calculation: If the current base rate is 5.25% and NatWest’s margin is, say, 1.5%, your tracker rate would total 6.75% (5.25% + 1.5%).
    2. Use a Mortgage Repayment Calculator:
      • NatWest provides a mortgage repayment calculator on their website.
      • Enter the tracker rate and other relevant details to see how variations in the rate might influence your monthly payments.

    This approach will give you a better understanding of how fluctuations in the base rate impact your mortgage costs, aiding in financial planning and budgeting for future rate changes.

    How YesCanDo Money Can Assist with Your NatWest Tracker Mortgage

    YesCanDo Money offers comprehensive support and independent advice for those considering or currently holding a NatWest Tracker Mortgage. Our services are designed to streamline the mortgage process, providing personalised assistance every step of the way.

    • Personalised Service and Expertise: YesCanDo Money’s experienced brokers specialise in understanding your unique financial needs and circumstances, helping you find the most suitable NatWest mortgage option.
    • Access to a Wide Range of Deals: With connections to NatWest and over 90 other lenders, we provide access to a vast array of mortgage deals and will find you the very lowest tracker deal, ensuring you get the best terms available.
    • Fee-Free Guidance: Our service is completely fee-free, ensuring you receive unbiased and customer-focused advice without any hidden costs.
    Grant Mortgage Adviser

    Case Study: Navigating Variable Income for a First-Time Buyer

    Grant (YesCanDo Mortgage & Protection Advisor

    Frequently Asked Questions

    Yes, NatWest offers tracker mortgages that adjust the interest rate you pay in line with the Bank of England base rate, providing flexible mortgage solutions for their customers. These mortgages are designed to be adaptable, reflecting changes in the market interest rates.

    Whether a tracker mortgage is worth it depends on your financial situation and the market conditions. If you anticipate the base rate to stay low, a tracker mortgage can offer savings. However, it's important to consider the potential for rate increases, which could raise your monthly payments.

    The current tracker mortgage rate at NatWest varies based on market conditions and individual borrower circumstances. It's advised to consult with one of our fee-free mortgage advisors for the most up-to-date and personalised rate information.

    NatWest's 6-month rule typically refers to the period before you can remortgage or apply for additional borrowing against your property. This rule is in place to manage risk and ensure property valuation accuracy, but specifics can vary, so it's best to confirm directly with NatWest.

    Whether a tracker mortgage is better than a fixed-rate mortgage depends on your risk tolerance and financial planning. A tracker rate mortgage can be beneficial in a falling interest rate environment, offering potential savings. However, they are riskier as payments increase when rates rise, unlike fixed-rate mortgages that offer stability in monthly repayments.

    The Bank of England base rate is set by the UK's central bank and influences lending rates nationwide. While changes in this rate often lead to adjustments in the National Westminster Bank Plc base rate, they are not the sole factor. NatWest maintains independent control over its base rate, which means it can fluctuate independently of the Bank of England's rate, responding to a variety of economic factors and internal policies.

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    FREE dedicated support throughout, we have full-market access to the best mortgage rates & deals. We do everything for you, for free! Call us, WhatsApp us, or fill in our contact form and let us know what the best time is for us to call you. We will get one of our mortgage advisors will be in touch to talk through your situation and available options.
    Grant Humphries (CeMAP)
    Grant Humphries (CeMAP)

    Grant Humphries (CeMAP) is a proficient Mortgage & Protection Adviser at YesCanDo Money. With a career spanning since 2001, Grant has honed his expertise in understanding mortgage lenders' criteria, complex financial situations, and the nuances of the mortgage market. His deep knowledge enables him to provide tailored solutions, especially for professionals and those with unique financial profiles. At YesCanDo, Grant's commitment to excellence is evident. He takes pride in guiding clients through their mortgage journey, ensuring they feel confident and informed at every step. From first-time buyers to seasoned investors, Grant's analytical approach and dedication make him a trusted adviser in the financial landscape

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