A fixed-rate mortgage keeps its interest rate unchanged for an agreed period. A tracker has a variable rate linked to a reference rate, usually the Bank of England base rate, plus a set margin. Your payments can rise or fall. The better fit depends on your budget and plans, not a prediction about the next rate decision.
The first question is practical: could you comfortably afford the payment if your tracker rate went up? Then compare the full cost and the flexibility of both deals.
Here is how to think it through. Steven Haley has 16 years' experience as a mortgage broker. Updated 7 October 2026.
What a fixed rate actually means
A fixed-rate mortgage keeps your interest rate unchanged for an agreed period, commonly two or five years. That gives you predictable scheduled payments during the deal, provided you do not change the borrowing or repayment arrangements.
At the end of a fixed deal, you normally move to the lender's reversion rate unless you arrange another product. Compare a new deal with your current lender and remortgaging elsewhere before the fixed period ends.
What is a tracker mortgage?
For illustration only, a tracker at base rate plus 0.9 percentage points would charge 4.9% if base rate were 4%. A rise in base rate to 4.5% would take it to 5.4%. These are example figures, not current rates or an available offer.
Check the mortgage offer for the reference rate, margin, when changes take effect and any minimum rate, sometimes called a collar. Early repayment charges and overpayment limits vary by product. A tracker is not automatically penalty-free.
The case for fixing
Certainty. Simple as that.
If your monthly budget is already stretched, knowing what your scheduled payment will be during the fixed period can be valuable. It lets you plan around childcare, bills and other commitments without having to absorb a rate rise during that deal.
It also tends to suit people who are just getting started and have other financial pressures: childcare, car finance, student loans. One less variable is one less source of stress.
The case for tracking
If the reference rate falls, a tracker may become cheaper, subject to its terms. But falls are not guaranteed, and the starting tracker rate may differ from the fixed deals available to you. Compare scenarios rather than assuming one direction for interest rates.
The downside is obvious: if rates rise again, so do your payments. That's the gamble.
Trackers tend to suit people who have a bit more financial cushion, could absorb a higher payment if needed, and want to benefit if rates fall without being locked in.
We'd never push you towards a tracker just because rates look like they might fall. Markets are unpredictable. But we will lay out the scenarios honestly so you can decide what you're comfortable with.
What about discounted variable rates?
There is another option: a discounted variable-rate mortgage. Instead of tracking base rate, it gives a discount from the lender's own standard variable rate.
The lender sets its own standard variable rate, so a discount deal does not necessarily move in step with the Bank of England. Compare its terms and total cost carefully, not just the initial discount.
The length question
Two-year vs five-year fixed is often a trickier decision than fixed vs tracker.
A two-year fix brings an earlier chance to review your deal. You may also face product fees, legal or valuation costs sooner if you switch again. Neither a two-year nor a five-year deal is always cheaper.
A five-year fix offers a longer period of payment certainty. Balance that against your plans to move, change borrowing or repay early. Check early repayment charges and whether moving the mortgage to another property would need a fresh assessment.
For a fair comparison, use the same mortgage balance and repayment term. Add the product fee, any interest charged on a fee added to the loan and switching costs, then compare over the period you expect to keep the deal.
The honest answer
Anyone who tells you with certainty which is better right now is either guessing or trying to sell you something. Rates move. Circumstances change. What we can do is model out both options for your specific numbers and show you exactly what you'd be paying under different base rate scenarios.
For a worked comparison, bring your balance, remaining term, current deal end date and an idea of the monthly payment you can live with. Our remortgaging page explains the next step. Nationwide explains how base-rate changes affect different mortgage types.
Not sure which is right for you?
We'll run the numbers for your specific situation and give you a straight answer.
Talk to an Adviser →