How Base Rate Tracker Mortgages Work
A base rate tracker mortgage directly follows the Bank of England base rate. Your mortgage rate consists of two parts:
Example:
- Bank of England base rate:4.50%
- Your tracker margin:+ 0.74%
- Your mortgage rate:5.24%
When the Bank of England changes the base rate, your mortgage rate changes by exactly the same amount. If they cut by 0.25%, your rate drops by 0.25%. If they raise by 0.50%, your rate increases by 0.50%.
Bank of England MPC Meetings in 2026
The Monetary Policy Committee meets 8 times per year to set the base rate. Decisions are announced at 12:00 noon on Thursdays:
| 2026 Meeting Date | Current Expectation |
|---|---|
| 7 May 2026 | Possible 0.25% cut |
| 19 June 2026 | Hold or cut |
| 1 August 2026 | Data dependent |
| 19 September 2026 | TBC |
| 7 November 2026 | TBC |
| 19 December 2026 | TBC |
*Dates approximate and subject to change. Market expectations are not guarantees.
How Payment Changes Work
Example: £250,000 mortgage at Base + 0.74%
Calculate Your Payment Changes
Use our tracker mortgage calculator to see exactly how base rate changes would affect your specific mortgage.
Launch Calculator →Base Rate Tracker vs Standard Variable Rate (SVR)
Both are variable rates, but they work differently:
Base Rate Tracker
- ✓ Only changes when BoE changes base rate
- ✓ Changes by exact same amount as base rate
- ✓ Transparent - you know the formula
- ✓ Usually lower rate than SVR
- ✓ Often has end date (e.g., 2 years)
Standard Variable Rate
- ⚠️ Lender can change anytime
- ⚠️ Doesn't have to follow base rate
- ⚠️ Less transparent pricing
- ⚠️ Usually higher than tracker rates
- ⚠️ No end date - continues indefinitely
Key Point: Base rate trackers give you certainty about when and how your rate changes. SVRs can change at the lender's discretion, making them less predictable and typically more expensive.
Frequently Asked Questions
What is a base rate tracker mortgage?
A base rate tracker mortgage directly follows the Bank of England base rate plus a fixed margin. When the BoE changes the base rate at their Monetary Policy Committee meetings, your mortgage rate changes by exactly the same amount, usually within one month.
How often does the Bank of England change the base rate?
The Bank of England's Monetary Policy Committee (MPC) meets 8 times per year to decide on the base rate. Meetings are roughly every 6-7 weeks, with decisions announced at 12:00 noon on Thursdays.
What's the difference between a base rate tracker and SVR?
A base rate tracker only changes when the Bank of England changes the official base rate. A Standard Variable Rate (SVR) can be changed by your lender at any time, regardless of the base rate. Trackers offer more transparency and predictability.
How quickly do tracker mortgage payments change after a base rate decision?
Most lenders apply base rate changes to tracker mortgages within one month of the BoE decision. Some apply it from the first of the following month, others from your next payment date. Check your mortgage terms for exact timing.