Fixed-rate vs tracker mortgage explained

Last reviewed 8 July 2026 · Compare Mortgage Rates editorial team

This guide looks at the topic through a rate-comparison lens, with emphasis on total cost, eligibility and lender criteria rather than headline rates alone.

The choice between fixed and tracker is mostly a question of how much certainty you want and what you think the Bank of England base rate will do.

Fixed-rate

Your interest rate is fixed for an agreed period — usually 2, 3, 5 or 10 years. Monthly payments don’t move during that time. After the fix ends you drop onto the lender’s SVR unless you remortgage.

Pros: certainty, easier budgeting, protection if rates rise.

Cons: usually higher than the equivalent tracker, ERC if you exit early, you miss out if rates fall.

Tracker

Your rate moves with the Bank of England base rate plus a margin — for example “base + 0.79%”. Many trackers have no ERC, making them flexible.

Pros: usually cheaper at outset, flexibility to overpay or exit, you benefit if rates fall.

Cons: payments rise if base rate rises; no protection.

Which to choose

If you want certainty and plan to stay put for 2–5 years, a fixed-rate usually wins. If rates look likely to fall and you might move or remortgage soon, a flexible tracker can be cheaper overall. A broker can model both side by side.

Frequently asked questions

Is a fixed-rate mortgage safer than a tracker? +

A fixed rate gives payment certainty for the fixed period. A tracker can rise or fall with the base rate, so it may suit borrowers who can manage payment changes.

Can I switch from a tracker to a fixed rate later? +

Often yes, but it depends on the product terms, any early repayment charge, and the deals available at the time. Check the terms before you apply.

Fixed-rate

Tracker

Which to choose

Frequently asked questions

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