Best tracker mortgage rates popular since base rate hit 0.5 per cent

Deals offering the best tracker mortgage rates have proved very popular in the 3 years since the base rate hit 0.5 per cent and, borrowers on tracker mortgages have never had it so good.

A mortgage that 'tracks' the Bank of England base rate will only change when the bank base rate changes, unlike lenders' standard variable rates. With some market experts predicting the first interest rate hike will not occur until 2014, there is a strong argument for borrowers searching out the best tracker mortgage rates offered by lenders. Current thinking in the marketplace is that the base rate will not rise this year and probably not next year either, therefore borrowers adopting trackers can be reasonably confident they won't be caught out by a rate rise in the near future.

Trackers come in two main types, the first tracks at a specified percentage above the base rate for a specific period of time, before then reverting to the lender's SVR. The second is the lifetime tracker, which tracks at a percentage above the base rate for the entire lifetime of the mortgage.

The Yorkshire Building Society owned intermediary lender Accord, has one of the best tracker mortgage rates at the moment. Accord are offering a 2 year deal at 1.89% above base rate giving an initial rate of 2.39%. It's available up to 75% LTV and has a £1,900 fee. A reduced fee alternative is offered at 1.99% above base with an arrangement fee of £900.