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Tracker mortgage

Take advantage of lower interest rates

A room being repainted

Our 2 year tracker rate mortgage follows the Bank of England base rate. So the interest rate you pay can go up or down.

  • Your payments will be lower when the Bank of England base rate is low but higher if the interest rate rises
  • Our tracker rate mortgages let you switch to one of our fixed rate mortgages if you need to during the initial rate period, without paying early repayment charges (other fees may apply)
  • We could help you make the move with our 90% loan to value (LTV) mortgages, meaning you only need a 10% deposit. There may be a non-refundable booking fee and a product fee, details of any fees payable will be found on your Mortgage Illustration
  • You could pay off your mortgage sooner. During the initial rate period, you can overpay by up to 20% of the outstanding balance each year with no early repayment charge
  • Get a great deal more. Earn Clubcard points on your monthly repayments and any regular or lump sum overpayments
  • Choose between a mortgage with a product fee or one without a product fee

Features of a tracker mortgage


Tracker rate mortgages explained

A tracker mortgage is a variable rate mortgage that tracks the Bank of England base rate. On the upside, when the rate’s low, you benefit from lower mortgage repayments. But on the other hand your monthly payments will increase if the rate goes up.

Once your tracker rate period has ended, we will move you to our standard variable rate (SVR). If you’re an existing customer, before your initial offer period ends, we’ll get in touch with details about our current mortgage deals.

Our tracker rate mortgage range

Use our quick mortgage calculator to see what mortgage rates we could offer you.

Not sure if a Tesco Bank Tracker Rate Mortgage is right for you? Take a look at our full range of mortgage options.

All of our mortgages are repayment, rather than interest-only. This means that you pay back the value of the loan (sometimes called capital), plus interest.


Our tracker rate mortgages offer great flexibility, so if your life changes your mortgage could too.

Have the flexibility to keep your options open

If the interest rates rise and our tracker rate mortgage no longer works for you, you can switch to a fixed rate mortgage at any time during your term, without paying an early repayment charge. If you apply to move to one of our fixed rate mortgages you may have to pay a product fee.

Make overpayments to pay off your mortgage faster

During the initial period (2 years) you can overpay by up to 20% of the outstanding balance each year with no early repayment charge.

When moving home, your mortgage can go with you

Just give us a call about moving your mortgage and we’ll walk you through what you need to know. Just a reminder, you may need to pay a property valuation fee, as well as other fees and charges.

Take a break with a payment holiday

If you’ve made 6 monthly payments in a row, you can apply to take a payment holiday for 1 month. You can take 2 payment holidays every 12 months, up to a total of 6 payment holidays over the lifetime of your mortgage. But remember, you'll still be charged interest during a payment holiday, so your monthly payments may go up.

You could borrow more

If you've made 6 monthly payments, one after the other, you can apply to borrow more. The minimum amount you can borrow is £5,000 and the rate of interest you’ll pay is our standard variable rate (SVR).

Please remember that if you borrow more, you'll have to pay back more, and fees and charges may also apply.

Clubcard rewards

You don’t need to lift a finger to get Clubcard points. We’ll automatically give you 1 point for every £4 you pay on your monthly mortgage payments – including overpayments. It’s easy to keep track of your points too as they’ll show up on your Clubcard account within 6 weeks of each payment you make.

You won't collect points on any fees or charges paid separately from your monthly payment or on any overpayment you make to pay off your mortgage in full.


We know that getting your mortgage sorted is important. That’s why we have a dedicated mortgage team. They provide an excellent service and are here to help you through the home buying process, whether you’re just starting out or are looking to move to a new home.

Our UK-based Mortgage Team is available from 8am to 9pm on weekdays, and 9am to 4pm on Saturdays. Call: 0345 217 2050.

We provide a full advice service by phone, or you can apply online.


Secure a better remortgage rate

Everyone has their own reasons for wanting to remortgage. Your current deal could be about to end, you might be looking for a better rate or be worried that interest rates might go up. Maybe your situation has changed and you want a different type of mortgage or perhaps you want to increase your mortgage to make home improvements.

We offer competitive rates on remortgage deals, so there’s nothing to stop you getting a quote and seeing how much you can borrow. If you’re coming to the end of your deal we can arrange for your home to be revalued and pay for your first standard valuation fee.

You could save by switching

When you remortgage with us, we’ll pay your first standard valuation fee and we'll also cover your standard legal fees

You’ll still have to budget for any additional surveys, legal work and other non-standard costs.


Renew your existing mortgage

If you’re an existing customer, before your initial offer period ends, we’ll get in touch with details about our current mortgage deals. We’ll work it out based on how much you still owe on your mortgage, our current valuation of your home, and the number of years left on your existing mortgage. And because you’re already a customer, we’ve done all the checks we need to, meaning switching to a new deal should be quick and easy.

Our awards and What Mortgage awards

What Mortgage readers have voted us Best Direct Lender 2016, the third year in a row. We've got another triple, Moneynet's Best Direct Mortgage Provider 2014, 2015 and 2016. And most recently we've been awarded Moneyfacts Best First Time Buyer Mortgage Provider 2016.

Our awards highlight our online product offering – including our 2 year tracker rate mortgages - and the ability to apply online.

Your home may be repossessed, as a last resort, if you do not keep up repayments on your mortgage.

Contact us - we're here to help

Need a few questions answered? Want to chat rather than scroll? Our UK-based teams are here to talk to you six days a week. Lines are open Monday to Friday 8am-9pm and Saturday 9am-4pm.

Call 0345 217 2050* to chat about new policies.

* These numbers may be included as part of any inclusive call minutes provided by your phone operator.