Fixed-rate Mortgage vs Variable-rate / Tracker
Side-by-side comparison, when-to-use-each guide, and instant conversion. Reviewed for 2026.
When you want predictable budgeting, rate-rise protection, longer-term certainty.
When you expect rates to fall, when the variable margin is small, for shorter-term mortgages.
| Aspect | Fixed-rate Mortgage | Variable-rate / Tracker |
|---|---|---|
| Rate certainty | Locked for term | Moves with base rate |
| Typical term | 2, 3, 5, 10 years | Lifetime or 2-3 year tracker |
| Early repayment charge | Usually yes (during fixed period) | Usually none or smaller |
| Initial rate | Higher | Lower (when base is low) |
| Risk | None during fix | Rate can rise unexpectedly |
Frequently asked
Which is more popular in 2026?
After the rapid rate rises of 2022-2023, about 85% of new UK mortgages chose fixed rates in 2024 — historically high. As rates stabilise in 2026, the fixed share is normalising back toward 70-75%.
What's a 'discount' mortgage?
A type of variable mortgage where the lender's Standard Variable Rate (SVR) is discounted by a fixed amount (e.g. SVR - 2%) for a period. Different from a tracker (which follows base rate) — SVR is set by the lender at any time.
Frequently asked questions
Which is more popular in 2026?
After the rapid rate rises of 2022-2023, about 85% of new UK mortgages chose fixed rates in 2024 — historically high. As rates stabilise in 2026, the fixed share is normalising back toward 70-75%.
What's a 'discount' mortgage?
A type of variable mortgage where the lender's Standard Variable Rate (SVR) is discounted by a fixed amount (e.g. SVR - 2%) for a period. Different from a tracker (which follows base rate) — SVR is set by the lender at any time.