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Santander Tracker Mortgage Overview

Santander, a renowned banking institution, offers a diverse array of mortgage products to cater to the varied needs of its customers. The Tracker Rate Mortgage is one such product, characterized by its flexibility and dynamic nature.
In this guide
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    Introduction to Santander Tracker Mortgages

    Santander’s tracker mortgages are designed for a wide range of customers, including homebuyers, first-time buyers, and those looking to remortgage. This demonstrates Santander’s commitment to providing versatile mortgage solutions.

    Overview of Tracker Rate Mortgages and Their Benefits

    Tracker rate mortgages are variable-rate mortgages that track the Bank of England base rate, meaning the interest rate you pay can go up or down.

    How Tracker Mortgages Differ from Other Mortgage Types

    Unlike fixed-rate mortgages, tracker mortgages offer a variable interest rate, which can provide savings when the base rate is low but also pose a risk if the base rate goes up.

    About Santander’s Tracker Mortgages

    Santander offers a selection of tracker mortgages to suit different financial situations, whether you’re a first-time buyer or looking to remortgage.

    Why Choose a Santander Tracker Rate Mortgage?

    Santander’s tracker rate mortgages are competitive, with transparent rates and flexible terms.

    Advantages of opting for a tracker rate mortgage with Santander

    • Transparency: The rate you pay is directly linked to the Bank of England base rate, so there are no surprises.

    • Flexibility: Potential for lower repayments if the base rate decreases.

    • Overpayment Options: A Santander mortgage allows you to make overpayments without incurring extra charges, helping you pay off your mortgage sooner.

    • Interest type: The interest type for Santander’s tracker mortgage is Variable.

    • Interest Calculation: The interest on Santander’s tracker mortgage is calculated daily.

    • Overpayments: With Santander tracker mortgages, you can make unlimited overpayments without incurring Early Repayment Charges (ERC). This allows you to pay off your mortgage early without any penalties.

    • Exit Fee: There is no exit fee with Santander tracker mortgages. This means you don’t have to pay an additional fee when you fully repay your mortgage.

    • Porting: If you move home, you have the option to ‘port’ your loan. This means you can transfer your current Santander mortgage rate from one property to another. However, this is subject to Santander’s standard lending criteria and terms and conditions.

    Santander Tracker Mortgage Rates

    Santander provides various tracker mortgage options, offering flexibility and potential savings during periods of low-interest rates.

    Get a Personalised Mortgage Interest Rate

    Santander understands that everyone’s financial situation is unique and offers personaliSed mortgage rates accordingly.

    Santander Mortgage Deals: Understanding Different Tracker Rate Terms

    Santander’s tracker rate mortgages are crafted with diverse financial plans in mind. Whether you’re aiming for a flexible budget or a long-term strategy, each term is designed to cater to individual financial goals. It’s a testament to Santander’s commitment to offer personalised mortgage solutions that resonate with the unique circumstances of every borrower.

    Detailed Analysis of Various Tracker Rate Mortgage Durations Offered by Santander

    Santander provides a plethora of tracker rate mortgage durations, from shorter spans for those with evolving financial landscapes to extended terms for customers desiring stability. The choice is strategic; short-term options can be perfect for individuals anticipating financial flux, while long-term deals offer a constant rate that aids in precise financial forecasting.

    Introductory Rate vs. Lifetime Rate Considerations

    When deliberating between an introductory rate and a lifetime tracker, borrowers are weighing immediate financial relief against long-term consistency. Introductory offers might initially ease the budget, but the eventual transition to a standard rate warrants consideration for its potential impact. Lifetime trackers, conversely, promise a rate that adjusts with the market, possibly favouring the financial patient.

    The Concept of a Mortgage ‘Collar’ and Its Implications

    The ‘collar’ is a feature of some tracker rate mortgages, preventing the interest rate from dropping below a certain point. While this can limit the benefits of a falling base rate for the borrower, it also stabilises the minimum payment, offering a predictable bottom line for one’s financial planning efforts. Understanding a ‘collar’ is critical to managing a mortgage that is adaptable yet within expected boundaries.

    What Happens When My Tracker Rate Mortgage Ends with Santander?

    It’s important to consider your options and plan for when your tracker rate mortgage term ends.

    Transitioning to Santander’s Follow-on Rate

    After your tracker rate term, you might move to Santander’s standard variable rate, or you could explore other remortgaging options with Santander.

    Pros and Cons of a Tracker Rate Mortgage

    Tracker mortgages have benefits such as potential cost savings and flexibility but also come with the risk of interest rate variability.


    1. Lower Initial Rates: Tracker mortgages often come with lower initial rates compared to fixed rate mortgages. This can be advantageous, especially in a low-interest rate environment.

    2. Benefit from Rate Decreases: If the tracked rate falls, so does the interest rate on your mortgage. This could lead to lower monthly payments.

    3. Transparent Pricing: The rate you pay is clearly linked to an external, publicly available rate, which can make the mortgage terms easy to understand.

    4. No Early Repayment Charges: Some tracker mortgages come with the advantage of no early repayment charges, providing flexibility to pay off the mortgage sooner if desired.

    5. Potential for Savings: If interest rates remain low or fall further, you could end up paying less over time compared to a fixed rate mortgage.


    1. Uncertainty: The interest rate and thus your monthly mortgage repayments can go up if the tracked rate increases. This uncertainty can make budgeting more difficult.

    2. Potential for Higher Costs: In a rising interest rate environment, a tracker mortgage can end up being more expensive than a fixed rate mortgage.

    3. Less Stability: Unlike fixed rate mortgages, tracker mortgages don’t offer the stability of knowing exactly what your mortgage repayment will be each month.

    4. Limited Availability: Tracker mortgages may be less commonly available than fixed rate mortgages, and terms and conditions can vary widely between lenders.

    5. Base Rate Influence: Your mortgage rate is at the mercy of external economic factors that influence the base rate, which you have no control over.

    Tracker rate mortgages can be a good option for some individuals, especially those who can afford to take on a bit of risk and believe that interest rates will remain low or decrease further. However, they may not be suitable for everyone, particularly those who prefer the certainty of fixed monthly payments. It’s important to carefully consider your own financial situation and possibly consult a mortgage advisor to determine if a tracker mortgage is the right choice for you.

    Calculating Your Monthly Payments with Santander’s Tracker Mortgage

    Calculating monthly payments on a tracker rate mortgage can be done using a formula similar to that used for other types of mortgages, with the key difference being that the interest rate on a tracker mortgage may change over time as it tracks an external rate. Here’s a step-by-step breakdown of how to calculate the monthly payments on a tracker mortgage:

    1. Find the Tracker Rate:

      • Sum of a base rate (like the Bank of England base rate) plus a margin.

      • Example: Base rate 5.25% + margin 2% = Tracker rate 7.25%.

    2. Use the mortgage repayment calculator below and play around with the interest rate for different scenarios.

    Mortgage Payment Calculator

    How YesCanDo Money Can Assist with Your Santander Tracker Mortgage

    YesCanDo Money provides independent advice and support for Santander tracker mortgages, ensuring a smooth process.

    Personalised Service and Expertise

    • YesCanDo Money offers personalised service to help you find the best Santander mortgage option for your financial situation.
    • Experienced brokers provide guidance at every stage.
    • Access Santander deals and offers as well as 90+ other lenders
    • No fees or hidden costs with YesCanDo Money, we’re fee free.
    • Personalised service tailored to meet your specific requirements
    • Support beyond your mortgage
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    FAQs – Santander Tracker Rate Mortgages

    Navigating the buy-to-let mortgage world can be confusing and we are here to help you make informed decisions. Below are some frequently asked questions (FAQs) about Santander’s buy-to-let mortgages that will assist in helping you make informed choices.

    Yes, Santander offers tracker mortgages that adjust the interest rate you pay in line with the Bank of England base rate, providing a flexible rate mortgage solution for customers.

    Whether a tracker mortgage is worth it depends on your financial situation and market conditions. If you anticipate the base rate to stay low, a tracker mortgage can offer savings, but rates can increase.

    Santander's current tracker mortgage rate varies based on market conditions and your personal circumstances. It's advisable to contact one of our fee-free mortgage advisors for live rates.

    Santander's 6 month rule typically refers to a waiting period before you can remortgage or apply for additional borrowing against your property, intended to manage risk and property valuation accuracy.

    A tracker mortgage can be better than a fixed-rate if interest rates fall, but it's riskier as payments increase when rates rise. Fixed-rate mortgages offer payment stability. Your choice should align with your risk tolerance and financial plan.

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    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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