Is it a good time to take a tracker rate mortgage with multiple Bank of England base rate cuts expected?

by Aaron Strutt

Dec 15 2025

The Bank of England's Monetary Policy Committee is now expected to cut the base rate tomorrow (18th December 2025) from 4% to 3.75%. 

With inflation down to 3.2% and the longer-term base rate outlook expected to be closer to 3%, is it worth considering a tracker-rate mortgage?

• Are trackers the right option now? 
• What are the pros and cons of trackers?

Most borrowers take two or five-year fixed rates, but it is a pretty good time to take out a tracker mortgage, given that Bank of England base rate cuts are expected. The Bank needs to do more to boost the UK economy, which ultimately means it needs to lower the base rate a few more times to ease some of the pressure on consumers and homeowners.

Aaron Strutt, product director at Trinity Financial, says: "The cheapest two-year fix is currently just over 3.50% and the lowest two-year tracker is 4.11% which is 0.11% over the 4% base rate. From tomorrow, the rate may drop to 3.86 and then decline further. The lowest trackers may also undercut some five-year fixes.

"If you are the sort of person who doesn't like financial risks or wants financial stability, plus you are not planning to move home, then fixed rates are probably still the best option. If you are willing to take a gamble and can afford the higher initial repayments, a tracker may be a good bet. You could consider tracking a tracker rate and watching to see if rates come down further, rather than locking into a five-year fixed priced around 3.75%.

"Many lenders do not offer their existing customers tracker rates, so when it is time to remortgage, they may need to switch providers. If you choose one of the many tracker rates available at the moment, look for one with a switch-to-fix facility in case rates rise and you want to take a fixed deal, or select one without early-repayment charges."

Trinity's brokers recently arranged a tracker for a client planning to move home in six months, offering a competitive rate with no early exit fees.

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The information contained within was correct at the time of publication but is subject to change.

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