🏦 Fixed vs Tracker Mortgages: Which Makes Sense Right Now?
A clear, no-nonsense guide for buyers and remortgagers in 2026.
- Fixed-rate mortgages offer certainty and predictable payments.
- Tracker mortgages move with the Bank of England base rate.
- Falling rates can favour trackers — but they come with risk.
- Fixed deals still suit most people who value stability.
- The “right” choice depends on your risk tolerance, plans and budget.
1 | What Is a Fixed-Rate Mortgage?
A fixed-rate mortgage keeps your interest rate — and monthly payment — the same for a set period (usually 2 or 5 years).
Key features:
- Payments don’t change during the fixed term
- Protection from rate rises
- Easier budgeting
- Usually includes early repayment charges during the fixed period
Fixed rates are popular because they remove uncertainty, especially during periods of economic change.
2 | What Is a Tracker Mortgage?
A tracker mortgage follows the Bank of England base rate, plus a set margin.
For example:
Base rate + 0.75%
If the base rate goes down, your rate falls.
If it goes up, your payments rise.
Key features:
- Payments can change
- Often no early repayment charges
- Can benefit from falling rates
- More exposure to market volatility
Trackers are typically chosen by borrowers who are comfortable with risk — or who plan to switch again relatively soon.
3 | Why This Choice Matters More in 2026
After years of volatility, the mortgage market is calmer — but still uncertain.
In 2026:
- Rates are expected to gradually improve, not collapse
- Further base rate cuts are possible, but not guaranteed
- Lenders are competing more aggressively on fixed deals
- Affordability still matters more than chasing the lowest headline rate
This makes the fixed vs tracker decision more nuanced than it first appears.
4 | When a Fixed Rate Usually Makes Sense
A fixed-rate mortgage often suits you if:
- You want certainty and predictable payments
- You’re close to your affordability limit
- You’d struggle if rates increased unexpectedly
- You plan to stay in the property for a while
- You value peace of mind over potential short-term savings
For many households, stability outweighs the potential upside of a tracker.
5 | When a Tracker Might Be Worth Considering
A tracker mortgage may suit you if:
- You expect rates to fall further
- You have strong affordability headroom
- You plan to remortgage again soon
- You want flexibility and minimal exit fees
- You’re comfortable with payment changes
Trackers are often used as a short-term strategy, not a long-term solution.
6 | The Risk Most People Underestimate
The biggest mistake isn’t choosing fixed or tracker — it’s choosing based on headlines alone.
Common pitfalls include:
- Assuming rates will definitely fall
- Stretching affordability to “make a tracker work”
- Ignoring how higher payments would feel emotionally
- Forgetting about stress testing and lender criteria
A mortgage should fit your life — not gamble with it.
7 | There’s No “Best” Option — Only the Right One for You
Two borrowers on the same income can make very different — but equally sensible — choices.
The right option depends on:
- Your income stability
- Your outgoings
- Your future plans
- Your attitude to risk
- Your budget comfort zone
This is why personalised advice matters.
📞 Want Help Deciding What Fits Your Situation?
This website is information only — we don’t give mortgage advice.
However, we can introduce you to a specialist mortgage adviser who can:
- Explain how fixed and tracker deals would work for you
- Stress-test payments properly
- Compare real lender options
- Help you choose a mortgage that feels sustainable
Information only: No mortgage advice is provided on this website. We introduce you to FCA-authorised advisers who can provide regulated advice.