Is a tracker cheaper than a fixed rate right now?

Yes. In late October 2026, competitive trackers are typically 0.7 to 1.5 percentage points cheaper than equivalent fixed-rate deals.

How much could my tracker payments rise?

Every 0.25% rise in the Bank of England Base Rate increases your rate by the same amount. On a £250,000 mortgage over 25 years, a 0.25% rise typically adds around £35 to £40 per month.

What happens when my fixed or tracker deal ends?

You usually move onto the lender's Standard Variable Rate, currently around 7%, which is significantly higher. Most people remortgage before this happens.

Can I switch from a tracker to a fixed rate later?

Yes, but you may face early repayment charges depending on the product. Some trackers have no early repayment charges, giving more flexibility.

Should first-time buyers choose fixed or tracker in 2026?

It depends on your risk tolerance and budget flexibility. Many first-time buyers prefer the certainty of a fixed rate, while those with stronger finances and larger deposits are more open to trackers for the lower starting rate.

Fixed vs Tracker Mortgage: Which Is Better In Late 2026?

Last updated: 26 October 2026

As of late October 2026, tracker mortgages are cheaper than fixed-rate deals by roughly 0.7 to 1.5 percentage points. The average two-year fixed rate sits at 5.97% and the average five-year fixed at 6.00%, while the best trackers start from around 3.99%, linked to the Bank of England Base Rate of 3.75%.

A tracker is cheaper today, but a fixed rate gives payment certainty if the Base Rate rises. The right choice depends on your risk tolerance, how long you plan to stay on the deal, and how much headroom you have in your monthly budget.

Current Rates Snapshot (October 2026)

Product	Best Available (Approx.)	Average	Moves With	Monthly Payment*
2-Year Fixed	4.69% – 4.99%	5.97%	Fixed	£1,417 – £1,460
5-Year Fixed	4.86% – 5.10%	6.00%	Fixed	£1,441 – £1,476
2-Year Tracker	From 3.99%	~4.5%	Bank Rate + margin	£1,318 – £1,390
5-Year Tracker	From 4.35%	—	Bank Rate + margin	£1,368 – £1,404

*Repayment mortgage of £250,000 over 25 years at the rates shown. Illustrative only — your rate depends on your loan-to-value, credit profile and the lender. Based on market averages and best available deals as of26 October 2026. Source: Moneyfacts (dated snapshot, not a live feed). Bank of England Base Rate 3.75% (next decision: 5 November 2026). See the mortgage rates snapshot.

How Fixed And Tracker Mortgages Work

Fixed-Rate Mortgage

Your interest rate stays the same for the full fixed term, usually 2 or 5 years. Your monthly payments never change during that period, whatever happens to the Base Rate.

Tracker Mortgage

Your rate is the Bank of England Base Rate plus a set margin, for example Base Rate + 0.24%. When the Base Rate changes, your rate and payment move by the same amount, usually within a few weeks.

Pros And Cons At A Glance

Fixed Rate

Complete payment certainty, easy to budget
Protection if the Base Rate rises

Currently more expensive than trackers
Early repayment charges usually apply if you leave early
You cannot benefit if rates fall during the fixed period

Tracker Rate

Noticeably lower starting rate in October 2026
You benefit automatically if the Base Rate is cut
Many trackers have lower or no early repayment charges

Monthly payments can rise if the Base Rate increases
Harder to budget if your finances are already tight
Some trackers have a collar, a floor below which the rate cannot fall

Cost Example And Break-Even Point

On a £250,000 repayment mortgage over 25 years:

Average 2-year fixed (5.97%): about £1,606 per month
Competitive tracker (4.5%): about £1,390 per month

Current monthly saving with a tracker: roughly £216.

A tracker stays cheaper unless the Base Rate rises by about 1 to 1.5 percentage points from the current 3.75%. Markets currently price in some upward pressure, but the exact path remains uncertain.

Who Each Option Tends To Suit

A Fixed Rate Usually Suits You If

You want complete certainty over your monthly payments
Your budget is tight and you cannot comfortably absorb higher payments
You plan to stay on the deal for the full term
You prefer peace of mind over the lowest starting rate

A Tracker Usually Suits You If

You can comfortably afford higher payments if rates rise
You want the lowest rate available right now
You may remortgage, overpay or move before the deal ends
You expect the Base Rate to stay stable or fall rather than rise sharply

Important Risks To Consider

Tracker rates can rise quickly after a Bank of England decision.
Most fixed-rate deals carry early repayment charges, often 1–5% of the outstanding balance.
Some trackers include a collar, so you may not benefit fully if rates fall.
Your personal rate depends heavily on your deposit size, credit history, income and the property.

Frequently Asked Questions

Next Steps

Rates and product availability change frequently, so it is worth reviewing current options for your exact borrowing amount and deposit. We can run the numbers for your circumstances and show you the best available fixed and tracker deals today.

020 4569 0630 See Today's Average Rates

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This page is general information, not personal advice or an offer of credit. Your home may be repossessed if you do not keep up repayments on your mortgage.