TSB has announced that its popular Early Repayment Charge (ERC)-free tracker mortgages are still available across both its residential and buy-to-let ranges, a rare and flexible option for UK borrowers in an uncertain interest-rate market. These tracker mortgage products allow borrowers to take advantage of potential Bank of England base rate changes without being tied to long-term early repayment fees, offering a level of flexibility that few lenders currently provide, especially in the buy-to-let (BTL) space.
What TSB’s ERC-Free Tracker Mortgages Offer
TSB’s ERC-free tracker range is available for both purchase and remortgage customers, with a £995 product fee.
- Residential tracker mortgages: available up to 85% loan-to-value (LTV)
- Buy-to-let tracker mortgages: available up to 75% loan-to-value (LTV)
All products include a free valuation, helping borrowers reduce upfront costs
While many lenders have shifted focus to fixed-rate deals in recent months, TSB’s decision to retain its ERC-free tracker options stands out, particularly for landlords and property investors who want flexibility in case mortgage rates change later in the year.
Why This Is Significant for Buy-to-Let Investors
ERC-free trackers for buy-to-let (BTL) properties are extremely rare in the current mortgage market. Most lenders offering BTL tracker products include early repayment charges, which can make it costly to switch to another rate or repay the loan early if market conditions change.
TSB’s offering means landlords can now:
- Refinance existing properties without long-term penalties
- Adapt quickly if mortgage rates fall further in 2025
- Sell or restructure their portfolio with greater freedom
For professional and portfolio landlords, this flexibility could make a huge difference, especially in a time when interest rates and rental yields are under close scrutiny.
What Is a Tracker Mortgage?
A tracker mortgage is a type of variable-rate mortgage that “tracks” the Bank of England base rate, usually adding a set percentage on top.
For example, if the base rate is 4% and your mortgage tracks at +0.5%, your interest rate will be 4.5%. When the base rate goes down, your mortgage rate will fall too, but if it rises, your monthly payments will increase.
Tracker mortgages can be attractive for borrowers who believe rates will fall or want the freedom to switch deals without hefty penalties, especially when paired with no ERC.
What Is an Early Repayment Charge (ERC)?
An Early Repayment Charge (ERC) is a fee charged by lenders if you repay your mortgage early, make large overpayments, or switch deals before the end of a fixed or discounted period.
ERCs are typically between 1% and 5% of the outstanding balance, meaning they can cost thousands of pounds for borrowers who want to remortgage or sell their property before the term ends. That’s what makes TSB’s ERC-free tracker range so attractive, you get flexibility and mobility without the financial penalty.
Who Might Benefit Most from TSB’s ERC-Free Trackers?
These products could be a strong fit for:
- Landlords expecting rates to fall and wanting to remortgage without exit fees
- Homeowners looking for short-term flexibility before committing to a fixed deal
- Buyers waiting to see where the market settles before locking in long term
- Remortgagers who want to avoid paying ERCs when switching again later in 2025
This level of adaptability is rare, particularly in the BTL market, and makes TSB’s offer one of the more interesting tracker propositions available right now.
Louis Mason, Head of Marketing & Communications at Oportfolio Mortgages had this to say:
“It’s refreshing to see TSB offering real flexibility to both homeowners and landlords. Tracker mortgages have often been overlooked in the current market, but with ERC-free options like these, borrowers can make smart, short-term decisions without locking themselves in. It’s especially positive to see this available to buy-to-let investors, a group that rarely benefits from such freedom.”
Speak to a Mortgage Expert
TSB’s decision to maintain its ERC-free tracker mortgage range for both residential and BTL lending gives borrowers valuable flexibility at a time when mortgage rates are still fluctuating. With free valuations, up to 85% LTV for homeowners, and up to 75% LTV for landlords, these products could be a great short-term solution for those who want to keep their options open while keeping costs low.
If you’re considering remortgaging or purchasing a property and want to explore your mortgage options, our team at Oportfolio Mortgages can help you compare the latest tracker and fixed-rate products available. Get expert mortgage advice today.
Mortgage FAQs
Q: What does ERC-free mean?
A: ERC-free means you can repay or switch your mortgage without paying an Early Repayment Charge, giving you full flexibility if you want to change deals later.
Q: What is a tracker mortgage?
A: A tracker mortgage follows the Bank of England base rate plus a set percentage. Payments go up or down in line with rate changes.
Q: Can landlords get tracker mortgages?
A: Yes, but ERC-free tracker mortgages for buy-to-let are rare, which is why TSB’s offering is so notable.
Q: What’s the difference between tracker and fixed-rate mortgages?
A: A fixed-rate mortgage locks in your rate for a set period, while a tracker mortgage moves with the base rate, offering flexibility but less certainty.
Q: Should I get a tracker mortgage now?
A: That depends on your risk tolerance and future plans. If you want flexibility and expect rates to fall, a tracker could be a smart choice.
