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Fixed or tracker: which mortgage rate should you take?

Certainty costs a little. The useful question is not what rates will do next, it is what a sudden rise would do to your household budget.

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The short answer

A fixed rate locks your payment for a set period. A tracker follows the Bank of England base rate plus a margin, so it moves both ways. A standard variable rate is the expensive default you fall onto when a deal ends. If a large rise would cause real problems, certainty is usually worth paying for.

2 or 5The usual fixed periods, in years
10%Typical annual overpayment allowance
Base rateWhat a tracker follows
HighestWhere a standard variable rate usually sits
What is on this page
  1. The three shapes
  2. How to choose between fixed and tracker
  3. Two years or five
  4. The charge nobody reads

The three shapes

Fixed rate

Certainty

The rate is locked for a set period, usually two or five years. Your payment does not move whatever happens to the base rate.

Tracker

Follows the base rate

The rate is the Bank of England base rate plus a set margin. It moves when the base rate moves, up and down.

Standard variable

The default

What you fall onto when a deal ends. Set by the lender, changeable at will, and usually the most expensive of the three.

A discounted variable rate is a fourth shape. It is a discount off the lender's standard variable rate, so it can move even when the base rate does not.

How to choose between fixed and tracker

Choose fixed if the budget is tightCertainty has a value that is not on the rate sheet. If a £150 rise would hurt, pay for the certainty.
Choose fixed if you are stretched on affordabilityA first purchase at the top of your range is not the place to take rate risk.
Consider a tracker if you expect to moveTrackers often have no early repayment charge, or a smaller one. That flexibility can be worth more than the rate.
Consider a tracker if you can absorb risesIf a two point rise would be uncomfortable rather than dangerous, a tracker can cost less over time.

Two years or five

Two year fix Five year fix
Certainty Short Longer
Typical rate Often slightly higher or lower depending on the market Priced on longer expectations
Fees paid Twice as often Once
Flexibility You can react to the market sooner You are committed for longer
Suits People expecting a change soon People staying put

Remember the early repayment charge. On a five year fix it can run to several percent of the balance. Check what it costs to leave before you commit.

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The charge nobody reads

Most fixed deals carry an early repayment charge. It is usually a percentage of the balance, often stepping down each year of the deal.

Overpayment allowances usually let you pay off up to 10% of the balance a year without a charge. If you plan to overpay, check the allowance before you pick the deal.

Porting is the other escape route. Most deals can be moved to a new property, though the lender still has to approve the new purchase.

Where you stand

Fix if
  • A rise of £150 a month would cause real problems
  • You are stretched on affordability
  • You want the payment settled while children are young
  • You are staying put for the next five years
Consider a tracker if
  • You may move or repay early within the deal period
  • You could absorb a two point rise without difficulty
  • The early repayment charge on a fix concerns you
  • You have savings that would cover several months of a rise

Check broadband before you make an offer

Broadband speeds can vary street by street, so check the exact address before you commit. Ofcom's free checker shows which broadband speeds and mobile coverage are available at any UK property.

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Questions people actually ask

Is a fixed or tracker mortgage better?
Fixed gives certainty, tracker gives the chance of paying less if rates fall. If a sudden rise in your payment would cause real problems, the certainty is usually worth the cost.
Should I fix for two years or five?
Five years if you expect to stay put and want the payment settled. Two years if you think your circumstances will change or you want to react to the market sooner.
What is an early repayment charge?
A fee for leaving a deal before it ends, usually a percentage of the balance that steps down over the term. It is the main cost of changing your mind.
Can I overpay on a fixed rate?
Many deals allow overpayments of up to 10% of the balance a year without a charge. Check the exact allowance, because it varies.
What happens when my fixed rate ends?
You move onto the lender's standard variable rate unless you arrange something else. That rate is usually much higher, so start looking six months before.
How do I check broadband speed at a property?
Use Ofcom's free broadband and mobile checker at checker.ofcom.org.uk. Enter the property's postcode and choose the address to see which broadband speeds and mobile coverage are available before you make an offer.

Where to go next

Remortgaging explainedWhen and how to switch.First-time buyer guideIf this is your first deal.Deposits explainedWhat sets the rate you are offered.How much can I borrow?Before you pick a rate.Mortgage protectionCover for the debt itself.MortgagesHow our introduction works.
Where these figures come from

Figures checked on 1 September 2026 and correct for the 2026/27 tax year. Rates change, so check the source before you act on a number.

Written by Ben Tomlin. Mortgage advice goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

Last reviewed September 2026.

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This goes to a separately authorised firm we have vetted. The introduction costs you nothing. If you go ahead, we may be paid a fee by that firm.

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