A tracker rate mortgage, unlike a fixed rate mortgage, means your interest will rise and fall in line with another interest rate – typically the Bank of England’s base rate – for a certain period of time. This is usually two or five years. Please note that NatWest tracker mortgages will track the National Westminster Bank Plc's base rate.
If the rate drops, your monthly mortgage payments will also drop. You could take advantage of these lower rates by overpaying on your mortgage. This can make it quicker to pay off your mortgage and reduce the amount of interest you pay.
If you are on a fixed or tracker rate, you can pay up to 20% of your outstanding balance each year without incurring an Early Repayment Charge.
However, if the tracker rate goes up and you continue to repay the same amount as before, it could take longer to pay off your mortgage.
