Mortgages

Fixed rate vs tracker mortgage: which should you choose?

A fixed rate gives you certainty. A tracker gives you flexibility and the chance to benefit if rates fall, with the risk that they rise. Neither is universally better. The right choice depends on your attitude to risk, your budget, and what is happening with interest rates when you decide.

How a fixed rate works

With a fixed rate mortgage, your interest rate and monthly payment stay the same for a set period, commonly two, three, or five years. You know exactly what you will pay regardless of what happens to the Bank of England base rate. The certainty is the appeal. The trade-off is that if rates fall, you do not benefit, and fixed deals usually carry early repayment charges if you leave before the end of the term.

How a tracker works

A tracker mortgage follows the Bank of England base rate plus a set margin. If the base rate falls, your payments fall. If it rises, they rise. Trackers often have lower or no early repayment charges, giving you flexibility to remortgage or overpay. The trade-off is uncertainty: your payments can go up, so you need budget headroom to absorb increases.

Choosing between them

You value certainty and want to budget precisely: fixed rate
You have tight margins and could not absorb a payment rise: fixed rate
You think rates may fall and can handle some risk: tracker
You want flexibility to overpay or move without penalty: tracker (check the specific terms)
You are unsure: this is exactly what advice is for

The adviser's view

The decision is partly about rates and partly about you. Two people offered the same deals might rightly choose differently based on their finances and how they feel about risk. An adviser looks at your budget, your plans for the property, your appetite for risk, and the current rate environment, then explains the realistic outcomes of each so you can choose with confidence rather than guesswork.

Important. Your property may be repossessed if you do not keep up repayments on your mortgage. Early repayment charges may apply to fixed and some tracker deals. Interest rates can rise as well as fall.

Not sure which is right for you?

That is exactly what we are here for. A quick conversation with an adviser will give you a clear answer based on your situation.

Check my mortgage options Speak to a mortgage adviser

Major Money Matters Ltd is an appointed representative of Sesame Ltd. Your property may be repossessed if you do not keep up repayments on your mortgage.

Reviews

What our clients say

Real reviews from clients across Romford and Essex, verified on Google.

Rated 5.0 out of 5 from 92 Google reviews Read the reviews on Google

    
 
 
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   Paul Maysmith 
 
 
 
 Trustindex verifies that the original source of the review is Google. Always a great experience. Thanks to Mark Potter, Chantel Smith on the mortgage side and Oliver Alan on the insurance. Can't recommend the team highly enough.
  
 
      Posted on Google  
   
   Ramona Iuga 
 
 
 
 Trustindex verifies that the original source of the review is Google. 5 stars service,Mark and the team always offer a great service and support all the way,highly recommended.
  
 
      Posted on Google  
   
   Fancy Window Cleaners 
 
 
 
 Trustindex verifies that the original source of the review is Google. Excellent service from Mark and the team as always.
  
 
      Posted on Google  
   
   Kelly Sainty 
 
 
 
 Trustindex verifies that the original source of the review is Google. The second time we’ve used major money matters and cannot fault anything! Both Mark and Chantel as helpful as ever
  
 
      Posted on Google  
   
   Amy Phillips 
 
 
 
 Trustindex verifies that the original source of the review is Google. A huge thank you to Billy for all his support throughout my mortgage process. He was knowledgeable, approachable, and always happy to answer my questions, making everything easy to understand and much less stressful. His advice and guidance were invaluable, and I always felt confident I was in good hands. I really appreciate all his help and would highly recommend him to anyone looking for a fantastic mortgage advisor. Thank you, Billy!
  
 
      Posted on Google  
   
   Robert Larkey 
 
 
 
 Trustindex verifies that the original source of the review is Google. Top quality service no fuss straightforward advice and actioned quickly once right product decided on
  
 
      Posted on Google  
   
   Montell Chukwu 
 
 
 
 Trustindex verifies that the original source of the review is Google. I was recommended major money matters through a friend and they haven’t been short of fantastic, Oliver Potter who handle my mortgage offered a perfect service, can’t recommend them enough!
  
 
      Posted on Google  
   
   Billy Camden 
 
 
 
 Trustindex verifies that the original source of the review is Google. The whole team at Major Money Matters are an absolute dream to work with. Their expertise, speed and friendly approach made what we thought was going to be an arduous process quick and simple. Mark, Oli and Lee were always just a phone call away if we had any questions and provided clear and easy to understand advice/guidance. We would recommend their services to anybody.

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