Fixed rate vs tracker mortgage at a glance
| Feature | Fixed rate mortgage | Tracker mortgage |
|---|---|---|
| Interest rate | Stays the same during the fixed period | Usually moves in line with an external rate |
| Monthly payments | Normally remain the same during the fixed period | Can rise or fall |
| Budget certainty | Greater certainty | Less certainty |
| Benefit if rates fall | Your rate normally stays unchanged | Your rate may reduce |
| Protection if rates rise | Your rate normally stays unchanged | Your rate and payments may increase |
| Early repayment charges | Common during the fixed period | May or may not apply |
| Flexibility | Depends on the product | Some tracker deals offer greater flexibility |
| Suitable for | You may prefer certainty and predictable payments | You may accept changing payments in return for potential flexibility |
Please note: This is only a general comparison. The actual rate, fees, early repayment charges and features will depend on the lender and product.
What is a fixed rate mortgage?
With a fixed rate mortgage, the interest rate stays the same for an agreed period.
Fixed periods commonly include two, three or five years, although shorter and longer options may also be available.
Your monthly mortgage payments will normally remain the same during the fixed period. This can make household budgeting easier because your payment will not change if wider interest rates rise.
When the fixed period ends, you will normally move onto the lender’s Standard Variable Rate unless you arrange another mortgage deal or complete a product transfer.
A fixed rate mortgage may appeal to you if:
- You want to know what your mortgage payment will be each month
- Your household budget has limited room for an increase
- You value certainty more than the possibility of benefiting from falling rates
- You expect to remain in the property during the fixed period
- You want protection from increases in wider interest rates during the deal
However, fixing your mortgage does not guarantee that you will pay less overall. If mortgage rates fall during your fixed period, your rate will normally remain unchanged.
Fixed rate mortgages may also have early repayment charges if you repay the mortgage, switch deals or move home before the fixed period ends.
What is a tracker mortgage?
A tracker mortgage is a type of variable rate mortgage.
The interest rate normally follows an external rate, often the Bank of England base rate, plus a set percentage charged by the lender.
For example, a tracker could be set at the Bank of England base rate plus a particular margin. If the tracked rate rises, your mortgage rate is likely to rise. If it falls, your mortgage rate may also fall.
The exact terms vary between mortgages. You should check:
- Which rate the mortgage follows
- The lender’s margin
- How quickly changes are applied
- Whether the mortgage has a minimum rate or floor
- Whether early repayment charges apply
- How long the tracker deal lasts
- What rate applies when the deal ends
A tracker mortgage may appeal to you if:
- You are comfortable with your mortgage payments changing
- You have enough room in your budget to manage an increase
- You want the possibility of benefiting if the tracked rate falls
- You value flexibility
- You may want to change your mortgage again within a shorter period
- The product has limited or no early repayment charges
A tracker mortgage does not guarantee lower payments. Your payments could increase, and you need to be confident that your budget could cope if they did.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
Why use a mortgage broker to compare fixed and tracker deals?
The mortgage with the lowest advertised rate is not always the cheapest or most suitable option.
A broker can compare:
- Interest rates and monthly payments
- Product and arrangement fees
- Early repayment charges
- Overpayment allowances
- Cashback and other incentives
- The total cost during the deal
- Lender criteria
- Whether the mortgage supports your future plans
We can also identify deals that you may not find through your own bank and help you avoid applying for a mortgage that does not fit your circumstances.
Once you decide which option feels right, we can manage the application, liaise with the lender and help keep the process moving through to completion.
You do not need to decide between a fixed rate and tracker mortgage before contacting us. Tell us what matters to you, and we can compare the available options and explain the advantages, costs and risks clearly.
Should you choose a fixed rate or tracker mortgage?
There is no single option that suits everyone.
A fixed rate may suit you if predictable monthly payments are important. A tracker may be worth considering if you can manage changing payments and place greater value on flexibility.
The difficult part is not understanding the basic difference. It is working out which option fits your budget, future plans and attitude to risk.
A mortgage broker can compare the fixed and tracker deals available to you, calculate the likely costs and help you understand what could happen if rates or your circumstances change.
How much certainty do you need?
If an increase in your mortgage payment would put pressure on your budget, the certainty of a fixed rate may be particularly valuable.
Before recommending a tracker, we can show you how your monthly payment could change if the rate increased. This gives you a clearer picture of the actual financial risk rather than asking you to make a decision based only on percentages.
For example, we can compare:
- Your payment at the starting rate
- Your payment if the rate increased
- How much room you have left in your monthly budget
- Whether a fixed deal would provide better payment security
This can help you avoid choosing a tracker that looks affordable today but becomes uncomfortable if rates rise.
Could your plans change?
Your future plans may be just as important as the interest rate.
Tell us if you may move home, repay a large amount, change jobs, reduce your working hours or alter the mortgage during the deal.
We can then look beyond the headline rate and check:
- Early repayment charges
- Overpayment allowances
- Whether the mortgage may be portable
- How long the deal lasts
- What happens if you need to change the mortgage early
A longer fixed rate can provide certainty, but it may be restrictive if your circumstances change. A broker can help you identify these limitations before you commit.
How comfortable are you with changing payments?
A tracker may be affordable at its starting rate, but it may not suit you if changing payments would cause financial pressure or worry.
Equally, you may feel frustrated by a fixed rate if wider rates fall and an early repayment charge prevents you from switching.
We will talk through both the financial and practical implications. The aim is not to predict interest rates for you, but to help you choose a mortgage you are comfortable living with.
What happens when rates change?
With a fixed rate, your rate and monthly payment will normally remain unchanged until the fixed period ends.
With a tracker, your rate and payment may rise or fall in line with the rate it follows.
If rates fall while you are fixed, switching may appear attractive. However, early repayment charges, product fees and legal or valuation costs could outweigh the saving.
A mortgage adviser like Your Mortgage Expert can calculate the likely cost of staying with your current deal compared with changing, so you can base your decision on the figures rather than the headline rate alone.
How can a mortgage broker help you choose?
Comparing fixed and tracker mortgages involves more than checking which rate is lower today.
At Your Mortgage Expert, we can help you:
- Understand how fixed and tracker mortgages work
- Compare products from a choice of lenders
- Calculate your payments under different rate scenarios
- Consider how much uncertainty your budget can manage
- Compare product fees and overall costs
- Check early repayment charges
- Review overpayment and portability features
- Consider how long you expect to keep the mortgage
- Explain what happens when the initial deal ends
- Manage the mortgage application through to completion
We can also consider whether a different mortgage type or deal length may fit your circumstances more closely.
Our aim is not to predict the market for you. It is to help you understand the available choices and select a mortgage that fits your budget, priorities and future plans.
Compare fixed and tracker mortgage options
You do not need to decide between a fixed rate and tracker mortgage before contacting us.
Tell us about your income, deposit or property equity, monthly budget and future plans. We can explain the available options and show you how the different rates, fees and features compare.
We help first time buyers, home movers and remortgage customers throughout the UK by phone and video call, with face to face appointments also available near Salisbury.
Speak to us before you commit to a mortgage and make your decision with a clear understanding of the costs and risks.
Last reviewed: June 2026
This article provides general information and does not constitute personalised mortgage advice. Mortgage availability, rates, fees and criteria depend on your circumstances and the products available when you apply.