New Mortgage Guides

Other Mortgage Guides

Mortgage Types

Mortgage Tools

Financial Services > Mortgages > Mortgages News

Fixed mortgage rates vs tracker mortgages

Bookmark and Share

Mortgage borrowers might be wondering whether they should choose a fixed rate mortgage or a mortgage that track the base rate, following the decision by a number of mortgage lenders to increase their fixed mortgage rates .

Predictions that the Bank of England may lower interest rates early next year could also make mortgage borrowers consider remortgaging to a tracker mortgage .

Price comparison website Moneysupermarket believes many fixed mortgage rate products still offer mortgage holders mortgage rates of lower than 4.5 per cent.

However, if fixed rates continue to get any higher, a tracker mortgage may be a better alternative, says the website's head of mortgages , Louise Cuming.

When comparing the best two-year fixed rate mortgage with the best two-year tracker mortgage, Moneysupermarket found that the fixed rate mortgage had a slight advantage of �93 for the mortgage term.

Ms Cuming is urging customers to shop around when they try to find a remortgage, but warns that they should not get stuck paying their mortgage lender's standard variable rate (SVR) in the process.

With the average SVR at 6.5 per cent, a borrower who opts for a 4.49 per cent fixed rate with Bank of Scotland , a borrower could save �2,997 a year on an interest-only mortgage of �150,000, she points out.

This is why choosing a fixed mortgage rate is always a better alternative than letting one's mortgage languish with the SVR, Ms Cuming advises.

Bookmark and Share

Recommended Links

Copy and Paste the following HTML into your page.

Receive Mortgage Advice from a Regulated Advisor

Mortgage advice

There is no better time to be seeking suitable mortgage advice from a Regulated mortgage advisor

Submit your details today for an obligation-free chat and a regulated mortgage advisor will call you back to help you find the mortgage that best fits your needs.

We will only provide your details to one regulated advisor.

Your mortgage

 * Help
 * Help
 * Help

About you


Questions marked with * are required

Please be aware that the advisor who contacts you will be a third party advisor who has no connection with us. There is no charge to you for using this service. We are paid by charging your assigned advisor a fee for this service. Any advice or assistance given to you by a third party advisor does not represent our advice or assistance and is not checked or endorsed by us. It is your decision whether or not you act on any advice or assistance you are given.

By clicking “Proceed” you confirm that:

  • You accept our Terms of use; and
  • You would like to be contacted by a regulated third party advisor to discuss your needs.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Financial Services Net Limited and other trusted 3rd parties would like to keep you advised via e-mail or telephone of products, services and other exciting offers we think may interest you. Please untick this box if you do not consent to us contacting you for further information.

Mortgage lenders

Browse mortgage lender offersMortgage Rates by Lender

  • Browse current mortgage offers from over 90 lenders.

Worried about mortgage repayments?Worried about Mortgage Repayments?

  • Join our petition to Government to bail out burdened individuals, not just banks.

Free mortgage quoteFree Mortgage Quote

Mortgages in Scotland Mortgages in Scotland

Equity releaseEquity Release

  • Unlock equity in your home.

Switching mortgagesSwitching Mortgages

Home reversion plansHome Reversion Plans

Commercial mortgages Commercial Mortgages

  • Commercial property loans
  • Starting a business?

Arrears & CCJs?

  • Remortgages
  • Sub prime mortgages
  • Arrears, CCJs
  • Self certification
  • Debt consolidation

Protect your mortgageProtect Your Mortgage

  • 3 months free mortgage protection cover

Mortgage Newsletter