Fixed vs Tracker Mortgage: Which Should You Choose?
Published 2026-07-17 · Updated 2026-07-17 · ~6 min read
A fixed-rate mortgage keeps your rate, and monthly payment, the same for a set period, giving certainty. A tracker follows the Bank of England base rate plus a set margin, so your payment moves up or down with it. Fixed suits people who value predictable payments; tracker suits those who can absorb changes and think rates may fall. Neither is universally better.
- Fixed = certainty, your payment can't change during the deal.
- Tracker = follows the base rate, payments can rise or fall.
- Both can carry early repayment charges within the deal period.
- The right choice depends on your budget and appetite for risk.
This is one of the most common questions at the point of choosing a deal, and the honest answer is that it depends on you, not on a formula. This guide sits under our cost of a mortgage guide, and is worth reading alongside our remortgaging guide if your current deal is ending.
How a fixed rate works
With a fixed-rate mortgage, your interest rate is locked for a set period, commonly two or five years. Whatever happens to the Bank of England base rate during that time, your rate and your monthly payment stay exactly the same. You're buying certainty: you know precisely what you'll pay, which makes budgeting simple. The trade-off is that if rates fall, you don't benefit until your deal ends.
How a tracker works
A tracker follows the Bank of England base rate plus a fixed margin, say, base rate plus a set percentage. When the base rate moves, your rate moves with it, so your monthly payment can go up or down. You get the benefit if the base rate falls, and you carry the risk if it rises. A tracker only suits you if your budget can genuinely absorb an increase.
Fixed vs tracker, side by side
| Factor | Fixed | Tracker |
|---|---|---|
| Monthly payment | Stays the same | Moves with the base rate |
| Certainty | High, easy to budget | Lower, payments can change |
| If rates fall | No benefit until deal ends | You pay less |
| If rates rise | Protected | You pay more |
| Early repayment charge | Usually applies in the deal period | Sometimes applies; some have none |
Two-year or five-year fix?
If you've decided on a fix, the length is the next question. A two-year fix usually carries a lower rate and lets you re-shop sooner, but you meet renewal, and any rate rises, sooner too. A five-year fix locks certainty for longer, which suits people who value stability or expect rates to climb. Your own plans (how long you'll stay, how settled your life is) matter more than any market prediction.
I ask clients one question first: if your payment rose next month, would it hurt? If the honest answer is yes, a fix is usually the right call regardless of what anyone predicts about rates, because the value of a fix is sleeping at night, not out-guessing the market. Trackers suit people with genuine headroom in their budget.
25 years matching Essex clients to the deal type that fits their budget and nerves, not a forecast. Full bio →
Torn between fixing and tracking? A mortgage broker in Essex can talk it through against your budget, not just what the market might do.
Get in touchFixed vs tracker questions
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Your home may be repossessed if you do not keep up repayments on your mortgage.
Bradgate Financial Solutions Ltd is authorised and regulated by the Financial Conduct Authority. FCA Firm Reference Number 672856. General information, not personal advice.
Reviewed by David Clark, CeMAP, 2026-07-17.