Tracker & Variable Rate Mortgages With Bad Credit — The UK Answer
Yes, you can get a tracker or variable rate mortgage with bad credit, but the choice is often narrower than with a clean credit file. In the UK, what other countries call an adjustable-rate mortgage is a tracker or standard variable rate: the rate can move up or down during the term. Darryl Dhoffer checks which specialist lenders will consider you and whether a fixed or variable rate is the safer fit.
🔄 Adjustable-Rate Mortgages in the UK
"Adjustable-rate mortgage" is the American term. In the UK the rate on these mortgages can move up or down during the term, and they come in three main forms:
- Tracker: follows the Bank of England base rate at a set margin above it. If the base rate changes, your rate changes by the same amount.
- Standard variable rate (SVR): the lender's own rate. The lender decides if and when it changes.
- Discount rate: a set amount below the lender's SVR for an initial period. It moves when the SVR moves.
For comparison, a fixed rate stays the same for the agreed period, usually 2 to 5 years, so your payment does not change. At the time of writing (October 2026) the Bank of England base rate is 3.75%.
⚖️ Fixed vs Variable With Bad Credit
If you have CCJs, defaults, an IVA or missed payments, you can still be offered a tracker or variable rate, but the choice of lenders and products is often narrower than for clean credit. Your credit history, deposit and how recent the problems are all affect what is available.
- A tracker can become cheaper if the base rate falls, but your payment can also rise if it goes up
- A fixed rate gives certainty, which many adverse credit borrowers prefer when affordability is tight
- An SVR can change at the lender's discretion, so it is rarely a good long-term choice
- Check for early repayment charges and product fees before you commit to any deal
- Checks which of his 65+ lenders will consider your credit history
- Compares fixed, tracker and variable options and explains the risks in plain English
- Stress-tests whether you could afford your payment if rates rise
- Plans your next remortgage so your options improve as your credit improves
🏦 What Lenders Look At
- Type, age and amount of any CCJs, defaults, IVA or missed payments
- Deposit or equity: more usually means more choice
- Income and affordability, including at a higher rate
- Whether the adverse credit has been satisfied or cleared
❓ Common Questions
Can I get a tracker or variable rate mortgage with bad credit?
Yes, but the choice is often narrower than for borrowers with clean credit. Many specialist lenders concentrate on fixed rates, so it is worth having a broker check which lenders currently offer trackers or variable rates for your circumstances.
What is the UK equivalent of an adjustable-rate mortgage?
In the UK the nearest equivalents are a tracker mortgage, which follows the Bank of England base rate at a set margin, and a standard variable rate (SVR), which the lender can change at its own discretion. Both can go up or down, unlike a fixed rate.
Is a fixed rate or a tracker better if I have bad credit?
It depends on your budget. A fixed rate gives you certainty, which suits tighter affordability. A tracker can fall if the base rate falls but can also rise, so you need to be comfortable your payments could increase.
What happens to my payments if the Bank of England base rate rises?
On a tracker, your rate normally rises by the same amount, so your monthly payment goes up. On an SVR the lender decides whether and when to pass on a change. Check you could afford a higher payment before choosing a variable rate.
Can I move to a better rate later as my credit improves?
Often yes. As defaults and CCJs age or are cleared, more lenders and better rates usually become available. Darryl plans each case with a view to your next remortgage, and checks any early repayment charges before you commit.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP YOUR REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER LOAN SECURED AGAINST IT.
This page is for general information only and does not constitute regulated financial advice. The Mortgage Geezer is a trading style of Access Financial Services Ltd who are authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 301173. Registered in England No. 04427489. Registered office address Access Financial Services Ltd, Unit 1 Furtho Court, Towcester Road, Old Stratford, Milton Keynes, MK19 6AN.