Mortgage guide
Fixed or variable-rate mortgage?
A fixed rate gives certainty over the interest rate for an agreed period. A variable rate can move, which means your mortgage payments may rise or fall. The right structure depends on more than trying to predict the next Bank of England decision.
Fixed-rate mortgages
Your interest rate stays the same for the fixed deal period.
With a fixed-rate mortgage, the mortgage interest rate does not change during the agreed fixed period. This means the contractual monthly payment on a standard repayment mortgage is normally predictable during that period, assuming nothing else about the loan changes.
Predictable payments
Useful if knowing the mortgage payment in advance is important to your household budget.
No immediate benefit from falling rates
If wider interest rates fall, your fixed mortgage rate does not automatically fall with them.
When the fixed period ends, you will usually move to the lender's reversion rate unless you arrange another deal or remortgage.
Variable-rate mortgages
Your mortgage rate can change.
Variable-rate mortgages include tracker, discounted-variable and standard-variable-rate arrangements. The mechanism for changing the rate depends on the product.
If your mortgage rate rises, your monthly payments can rise. If it falls, your payments can fall, subject to the terms of the mortgage.
A variable rate can provide flexibility, but payment uncertainty is part of the risk.
Tracker mortgages
A tracker normally follows an external rate.
MoneyHelper explains that tracker mortgages commonly follow the Bank of England base rate plus an agreed margin. If the tracked rate changes, the mortgage rate generally moves with it according to the product terms.
A tracker has a defined reference rate. A lender's Standard Variable Rate is set by the lender and is not directly tied to the Bank of England base rate in the same way.
Standard Variable Rate
Doing nothing at the end of a deal can change what you pay.
If an introductory fixed, tracker or discounted deal ends and you do not arrange another product, you will commonly move onto the lender's reversion rate, often its Standard Variable Rate — SVR.
The FCA notes that a reversion rate will typically be higher than the initial fixed rate, although the actual position depends on the lender and market at the time.
Leaving a deal early
Check the Early Repayment Charge before choosing a mortgage.
Some mortgages charge an Early Repayment Charge — ERC — if you repay, remortgage or leave the deal during a specified period. The amount and duration depend on the mortgage terms.
FCA rules require applicable ERCs on regulated mortgage contracts to be disclosed, and the charge must meet regulatory requirements.
If you may move home, repay a substantial amount or change mortgage before the deal ends, the ERC and any portability provisions can be important.
Comparing deals
Do not choose solely on the headline interest rate.
Monthly payment
Can you afford it now, and what happens if a variable rate rises?
Product fees
A lower rate with a large fee is not automatically cheaper overall.
Deal period
Consider how long you want payment certainty or the chosen rate structure.
Early repayment charges
Understand the cost of changing course before the deal ends.
Reversion rate
Know what the mortgage moves onto if you take no action at the end of the deal.
Overall cost
Use the mortgage illustration and APRC alongside your expected holding period and circumstances.
The decision is about the balance between certainty, flexibility, cost and your capacity to cope with changing payments.
Mortgage advice
Choosing between fixed and variable?
A mortgage review can compare the rate structure alongside fees, early repayment charges, likely plans and how much payment uncertainty your finances can comfortably absorb.
Book a conversationThis guide is for general information only and is not personal mortgage or financial advice. Mortgage rates, product terms and lender criteria can change. Your home may be repossessed if you do not keep up repayments on your mortgage. Content checked against current FCA and MoneyHelper guidance on 16 September 2026.