You are here: Home | Savings | Saving in a recession | Tracker mortgage

Benefiting from your tracker mortgage

If you're on a tracker mortgage you may have seen your interest payments shrink over recent months, and that means more money in your pocket.

Since tracker mortgages fall and rise with base rates, we've got a few suggestions to help you take advantage of the extra cash while you can.

Creating your own safety net

It's always worth having savings set aside to cover at least three months' outgoings. With redundancies in the news, it's now more relevant than ever. If you put the money into an instant access savings account you'll be able to get to it when you need it, and earn interest at the same time. That way, you're ready for whatever the future has in store.

Take a look at our instant access savings accounts
Making overpayments on your mortgage
Once you've built up a cash fund, it could then make sense to put any extra cash towards your mortgage. You may find that you'd save more money by overpaying your mortgage than by opening a savings account. You can either:
- Keep monthly repayments at their original, higher level
- Or build up a lump sum and make a one-off overpayment.
Whichever route you choose, you could knock years off your tracker mortgage and save yourself thousands of pounds in interest payments. Just make sure you check with your provider whether any early payment charges apply when making overpayments
Other ways to save
- Accessing your money when you want
  Now more than ever it makes sense to have savings that you can dip into when needed.
- Putting a lump sum away
  If you're after a better return on your savings a longer term investment could be the answer.

If you'd like to know more, give our mortgage specialists a call on 0845 070 4431*
or we can call you back. Alternatively, pop in to your local branch and make an appointment with a mortgage adviser.

Looking for a different type of mortgage?

Our full range includes tracker and fixed rate mortgages.

Was this information useful?

*Lines are open Monday to Friday 9am-8pm and Saturday 9am-2pm. Sunday closed. To maintain a quality service, we may monitor or record phone calls. Read call charges info.