“Should I fix my mortgage rate when I remortgage?”
This is one of the most frequently asked questions I receive — and with interest rates moving unpredictably, it’s no wonder.
When your current deal is coming to an end, deciding between a fixed-rate or tracker mortgage can feel overwhelming. But it doesn’t have to be.
Here’s a simple guide to help you weigh up what might work best for you.
Fixed-Rate Mortgages: Predictability & Stability
A fixed-rate mortgage means your interest rate is locked in for a set period, typically two, five, or even ten years. Your monthly payments stay the same throughout, no matter what happens to the Bank of England base rate.
Pros of a Fixed Rate:
✔ Peace of mind – Your payments won’t change, making it easier to budget.
✔ Protection from rate rises – If interest rates go up, your deal stays the same.
✔ Great for long-term stability – Helpful if you want certainty, security and ease of budgeting.
Cons of a Fixed Rate:
✖ You won’t benefit if rates fall – If the base rate drops, you’ll still be paying the higher fixed rate.
✖ Early repayment charges – If you want to leave your deal early, penalties can apply..
Tracker Mortgages: Flexibility & Potential Savings
A tracker mortgage follows the Bank of England base rate, plus a set percentage. So, if the base rate changes, your mortgage payments change too.
Pros of a Tracker Mortgage:
✔ You could save money if rates fall – If interest rates drop, your payments reduce too.
✔ Fewer early repayment charges – Some tracker deals offer more flexibility if you want to switch later.
Cons of a Tracker Mortgage:
✖ Payments fluctuate – If the base rate rises, so do your repayments.
✖ Harder to budget – You need to be comfortable with changes in your monthly payments.
✖ Rates can rise unexpectedly – If the economy shifts, you might end up paying more than expected.
Which One is Suitable for You?
Choose a fixed-rate mortgage if:
✔ You prefer certainty and need stable monthly payments.
✔ You’re on a tight budget and can’t afford sudden payment increases.
✔ You think interest rates might rise and want protection against that.
Choose a tracker mortgage if:
✔ You’re happy to take some risk in exchange for potentially lower payments.
✔ You have flexibility in your budget to handle any increases.
✔ You believe rates may stay low or even drop.
What’s Happening with Interest Rates?
Interest rates are often unpredictable, making it even more important to weigh your options carefully. A tracker mortgage might save you money in the short term, but if rates rise, a fixed-rate deal could end up being the more secure option.
It’s always worth reviewing your mortgage options early to avoid moving onto your lender’s standard variable rate (SVR), which is usually much higher.
The good news? You can secure a new mortgage deal up to 6 months before your current one ends. And if a better deal becomes available in that time, we can simply switch you to the improved product — no stress.
Your mortgage is only one piece of the puzzle. A full financial planning meeting is always a good idea, because your overall budget, future goals, and safety nets all play a part in choosing the most suitable mortgage for you.
Need Help?
Still unsure whether to fix or track your mortgage rate? That’s what I’m here for.
Every situation is unique, and the most suitable option depends on your goals, income, lifestyle, and attitude to risk. I can help you review your mortgage and build a plan that fits you.
Get in touch with us today here or book directly onto my https://link.willowtree-fs.co.uk/widget/bookings/30-min-initial-appointment ***
Willow Tree Financial Services is a Financial Adviser based in Polegate, East Sussex. We specialise in:
- Financial Planning
- Mortgages
- Investments & Pension Planning
- Protection & Insurance
- Wills, Trusts & Estate Planning
Stay in touch with us on social media:
facebook.com/willowtreefinancialservices
linkedin.com/in/rachael-panteney
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Plus, visit our YouTube channel where you can lots of helpful financial advice videos:
www.youtube.com/@willowtreefinancialservices
Your home may be repossessed if you do not keep up repayments on your mortgage.
Will writing is not part of the Quilter Financial Planning offering and is offered in our own right. Quilter Financial Planning accept no responsibility for this aspect of our business.
Trusts & estate planning is not regulated by the Financial Conduct Authority
