Fixed vs Tracker Mortgages: Which Should You Choose?
Understanding the key differences to make the right decision for your circumstances.
Should I choose a fixed or tracker mortgage?
Choose fixed if you want payment certainty and protection from rate rises. Choose tracker if you believe rates will fall or stay low, and can handle payment fluctuations. Fixed rates are typically 0.5-1% higher but offer budgeting peace of mind. Trackers follow the Bank of England base rate.
Expert advice on choosing the right mortgage type for your circumstances.
Should I choose a fixed or tracker mortgage?
Choose fixed if you want payment certainty and protection from rate rises. Choose tracker if you believe rates will fall or stay low, and can handle payment fluctuations. Fixed rates are typically 0.5-1% higher but offer budgeting peace of mind. Trackers follow Bank of England base rate, so payments can go up or down.
Key Facts: Fixed vs Tracker
- •Fixed: Your rate stays the same for 2-5+ years regardless of Bank of England changes
- •Tracker: Your rate moves with the base rate - payments go up or down
- •Fixed rates typically 0.5-1% higher than trackers initially
- •Trackers are better if rates are falling; fixed is safer if rates are rising
- •Early exit fees apply to both - check before committing
Fixed Rate
Your interest rate stays the same for the entire fixed period, regardless of Bank of England changes.
Tracker Rate
Your interest rate tracks the Bank of England base rate, moving up or down as it changes.
Feature-by-Feature Comparison
Compare key features of fixed and tracker mortgages to see which best suits your needs.
| Feature | Fixed Rate | Tracker Rate |
|---|---|---|
| Payment certainty | ||
| Protection from rate rises | ||
| Benefit from rate cuts | ||
| Typically lower initial rate | ||
| Early repayment charges | Usually 1-5% | Often lower or none |
| Budgeting ease | Excellent | Variable |
| Best when rates rising | ||
| Best when rates falling | ||
| Typical term lengths | 2, 3, 5, 10 years | Lifetime or 2-5 years |
| Transparency of rate changes | N/A - rate locked | Follows base rate exactly |
When to Choose Fixed
Interest rates are rising
Lock in your rate before further increases.
You need budget certainty
Know exactly what you'll pay each month.
First-time buyer on tight budget
Avoid surprises as you adjust to home ownership costs.
Planning to stay long-term
5 or 10-year fixes offer extended security.
When to Choose Tracker
Interest rates are falling
Your payments reduce automatically with base rate cuts.
You can absorb payment increases
Financial buffer to handle potential rate rises.
You want flexibility
Many trackers have lower or no early repayment charges.
You may move or remortgage soon
Avoid high ERCs if plans change.
Still Unsure? Take Our Quiz
Answer a few quick questions and we'll recommend whether fixed or tracker suits your situation.
How important is knowing exactly what your monthly payment will be?
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