Fixed rate mortgage vs Tracker / Variable rate
Side-by-side comparison, when-to-use-each guide, and instant conversion. Reviewed for 2026.
Budget certainty, risk aversion, belief rates won't fall much further.
Expectation that base rate will fall substantially, short-term ownership, comfortable with payment variability.
| Aspect | Fixed rate mortgage | Tracker / Variable rate |
|---|---|---|
| Rate (May 2026 est.) | Check current deals (2-yr fix) | 3.75-4.75% (tracker at base+1%) |
| Certainty | Monthly payment fixed for term | Changes with base rate |
| Early repayment charge | Often £0-5,000+ | Usually none |
| Downside risk | Over-paying if rates fall | Payments rise if rates rise |
| Typical term | 2, 3 or 5 years | Lifetime or with intro period |
Frequently asked
Should I fix or track my mortgage in 2026?
Market expectations for the base rate change often, so check the latest forecasts. A tracker at base+0.75% would currently be about 4.5%, and would fall if base rate is cut. If this plays out, a tracker looks better than a 2-year fix. But rate forecasts have been consistently wrong — fix if certainty matters to your budget.
What's a 'base rate mortgage' vs 'standard variable rate'?
A base rate tracker directly follows the Bank of England base rate (e.g. base + 0.5%). A standard variable rate (SVR) is set by the lender — it broadly follows the base rate but the lender can change it independently. Never take an SVR mortgage intentionally; it's the default you fall onto when your fix ends.
Frequently asked questions
Should I fix or track my mortgage in 2026?
Market expectations for the base rate change often, so check the latest forecasts. A tracker at base+0.75% would currently be about 4.5%, and would fall if base rate is cut. If this plays out, a tracker looks better than a 2-year fix. But rate forecasts have been consistently wrong — fix if certainty matters to your budget.
What's a 'base rate mortgage' vs 'standard variable rate'?
A base rate tracker directly follows the Bank of England base rate (e.g. base + 0.5%). A standard variable rate (SVR) is set by the lender — it broadly follows the base rate but the lender can change it independently. Never take an SVR mortgage intentionally; it's the default you fall onto when your fix ends.