Fixed-rate vs tracker mortgage explained
Last reviewed 28 June 2026 · Smarter Mortgage Quotes editorial team
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.
Want to see how different rates affect your payments? Use our repayment calculator, or speak to an adviser to discuss which option is right for you.