Short answer: a fixed-rate mortgage keeps your interest rate, and so your monthly payment, the same for a set period (usually 2, 3, 5 or 10 years). A tracker mortgage moves up and down with the Bank of England Bank Rate. Fixed is better if you want certainty and couldn’t comfortably absorb a rise. A tracker can suit you if you have spare room in your budget and want flexibility, especially if it has no early repayment charges.
Updated November 2026. On 5 November 2026 the Bank of England raised Bank Rate from 3.75% to 4%, the first increase in more than three years (Bank of England). If you have a tracker, your payment will go up. If you’re choosing now, here’s how I’d think about it.
Fixed rate vs tracker at a glance
| Fixed rate | Tracker | |
|---|---|---|
| Monthly payment | Stays the same for the deal period | Rises and falls with Bank Rate |
| If Bank Rate rises | No change until the fix ends | Payment goes up |
| If Bank Rate falls | No change, you may overpay versus a tracker | Payment goes down |
| Early repayment charges | Usually yes, during the fix | Sometimes none |
| Best for | Budget certainty, first-time buyers, tight budgets | Spare budget room, people who may move or repay early |
When a fixed rate makes sense
- You want to know exactly what goes out each month
- You’re a first-time buyer or your budget is already tight
- You’d lose sleep if payments jumped
Two-year or five-year fix? A shorter fix gives you a chance to switch sooner if rates fall. A longer fix gives longer certainty, but early repayment charges usually last for the whole term. Think about whether you might move, and see porting your mortgage.
When a tracker makes sense
- You can absorb a rise in payments comfortably
- You expect to sell, move or repay a chunk soon and want no early repayment charges
- You want to be able to switch to a fix later without penalty (some trackers allow this)
Check the small print for a “collar”, the minimum rate a tracker can fall to.
What about variable and discount rates?
A standard variable rate (SVR) is the rate your lender moves you to when a deal ends. It is set by the lender and is usually higher than its fixed or tracker deals. A discount mortgage gives you a discount off the lender’s SVR for a set period. Most people should avoid drifting onto an SVR. See what happens when your fixed rate ends.
How Bank Rate affects each type
Trackers usually change within a month or so of a Bank Rate decision. Fixed rates are priced from longer-term market expectations, so they can move before or after Bank Rate does. More in how Bank Rate affects your mortgage.
My honest view
There’s no right answer for everyone. I’d pick whichever lets you sleep at night and still works if you move or your income changes. I’ll show you a fixed and a tracker side by side, including fees and early repayment charges, so you can see the real total cost, not just the headline rate. See how to compare mortgage rates.
Fixed rate ending? Start with a remortgage or product transfer review. There’s no fee for product transfers, and remortgages are £299, payable only once you receive your full mortgage offer. Purchases are £495 and specialist lending £895.
Frequently asked questions
Is a fixed or tracker mortgage better right now?
It depends on your budget and plans. With Bank Rate rising to 4% in November 2026, a fix gives payment certainty. A tracker can still suit people with spare budget room who want flexibility and no early repayment charges.
What is a tracker mortgage?
A tracker mortgage’s rate is set at a fixed margin above the Bank of England Bank Rate, so your payment rises or falls when Bank Rate changes.
Can I switch from a tracker to a fixed rate?
Some trackers let you switch to a fixed rate with the same lender without early repayment charges. Others charge a penalty, so check before you choose.
Should I fix for two years or five years?
A two-year fix lets you review sooner. A five-year fix gives longer certainty but usually comes with early repayment charges for five years. Your plans to move or repay early matter most.
What happens when my fixed rate ends?
Your lender usually moves you to its standard variable rate, which is normally higher. Most lenders let you secure a new deal around three to six months before your fix ends.
Your home may be repossessed if you do not keep up repayments on your mortgage.