Should I fix my mortgage?

Key takeaways

• Fixed rate mortgages can make sense if you value predictable monthly payments and would find a rate rise difficult to manage.

• A fixed rate protects you if mortgage rates rise during the deal, but you will not benefit if rates fall and may face an early repayment charge if you leave the deal early.

• Fixed mortgage rates are influenced by lenders’ expectations for future interest rates, so they can move before the Bank of England changes the base rate.

• Compare the overall cost, fees and early repayment charges, not just the headline rate, before choosing a two, three or five-year fix.

Should I fix my mortgage now?

There isn't one right answer to whether you should fix your mortgage now. The right choice depends on how much certainty you need, how comfortably you could afford higher repayments and how long you expect to keep your mortgage.

A fixed-rate mortgage could be a good option if you want to know exactly what your mortgage payments will be for a set period and would prefer certainty over the possibility of benefiting from falling rates.

Fixing your mortgage may make sense if you:

• are currently on your lender's standard variable rate (SVR), which is often more expensive than a new mortgage deal

• have a mortgage deal ending soon and a higher monthly payment would put pressure on your household budget

• want predictable monthly repayments

• would struggle to afford your payments if mortgage rates increased

• expect to stay in your home for most or all of the fixed period

• don't expect to move, remortgage or borrow more during the fixed period.

You may prefer a tracker mortgage or other variable-rate mortgage if you can comfortably afford your payments to rise, want the flexibility to benefit if interest rates fall, or expect to move or remortgage sooner.

Fixed vs tracker mortgage: which is right for me?

The choice between a fixed-rate and variable-rate mortgage largely comes down to certainty versus flexibility.

Neither option is automatically better. A fixed rate may be worth considering if a rise in repayments would put pressure on your finances.

A tracker could be more suitable if you have enough room in your budget to cope with increases and want the potential benefit of falling rates.

What is happening to mortgage rates?

The Bank of England's base rate is currently3.75%^[1]. However, fixed mortgage rates don't simply rise or fall in line with the base rate.

Lenders price fixed-rate mortgages using wholesale market rates, which reflect expectations about where interest rates could be in the future. This means fixed mortgage rates can change before the Bank of England announces a base rate decision.

Inflation, energy prices and the wider economy can also affect expectations and cause mortgage rates to change quickly.

Rather than trying to predict the exact direction of mortgage rates, focus on finding a deal that you can comfortably afford and that fits your plans.

If your current mortgage deal is ending soon, you may be able to lock in a new mortgage rate in advance.

Depending on the lender and deal, you may also be able to change to a different rate before your new mortgage starts if a better deal becomes available. Check the terms carefully, as restrictions and fees can apply.

Is the base rate high at the moment?

The base rate is currently 3.75%^[1].

The base rate was at historic lows from 2009 to 2022. It was reduced to 0.1% in March 2020 in response to Covid lockdowns, and stayed at the same level until December 2021.

Since then the base rate peaked at 5.25% in August 2023, and since then it has been gradually coming down.

It may seem like the base rate is relatively high – but looking back over the past 40 years or so, it has been much higher. It stood at around 14 or 15% in the early 1980s, and was in double figures constantly between July 1988 and May 1992.

How does the base rate affect mortgages?

If you have a variable rate mortgage, or are on your lender’s standard variable rate (SVR), changes to the base rate will affect your monthly payments.

Each individual lender’s SVR will be influenced by the base rate, but the rate is not directly tied to it. Lenders usually change their SVR in response to a base rate move – but they’re not obliged to.

A discounted variable-rate mortgage tracks the mortgage lender’s SVR. This means that, if the SVR goes up or down, so does your mortgage interest rate.

A tracker mortgage is a type of variable rate that directly tracks the base rate (e.g. base rate +1%). With a tracker mortgage your monthly repayments will rise or fall in line with base rate changes. So, if the base rate goes up by 0.25%, your mortgage rate will increase by 0.25%. If it falls by 0.25%, your mortgage rate will fall by 0.25%.

You can monitor how base rate changes will affect your mortgage repayments by using our base rate calculator.

If you have a fixed rate mortgage you won’t be affected immediately by base rate changes. This is because your mortgage rate will be locked in for a set period (e.g. 2, 3, 5, or 10 years).

But after the fixed period ends, you will usually be moved to your lender's SVR, which will be affected by the base rate. And if you want to take out a new fixed rate mortgage, the rates available will be impacted by the base rate.

Why are fixed rate mortgages popular?

Fixing your mortgage is the most common approach for first-time buyers, those moving home and people looking to remortgage.

In 2025 85% of outstanding mortgages in England were on fixed rates, according to UK Finance, with just 15% on variable rates.

Whether a fixed or variable rate is better depends on what you can afford, how long you need the mortgage to be flexible, and the deals available when you apply. Predictions about future rates are uncertain, so do not choose a mortgage purely on a forecast.

Borrowers tend to prefer fixed rates over variable rates because:

• They offer protection from rising interest rates for the duration of the fixed rate

• Budgeting is easier as borrowers will know exactly how much their monthly payments will be during the fixed period

However, the downsides of fixed rates are:

• You might end up paying more than is necessary for your mortgage if mortgage rates fall.

• You’ll be locked in for the duration of the fixed and could be charged early repayment fees if you want to remortgage or sell your home during the fixed period.

Is it better to fix for two or five years?

Fixing for two or five years comes down to your personal and financial circumstances, risk tolerance, and expectations for interest rates. Prices vary between lenders and can change quickly.

Five-year deals may be more affordable overall as you won’t incur remortgaging costs (mortgage arrangement and valuation fees) so often. These fees can often add up to £1,000 or more, while researching and switching to a new mortgage can also be quite time-consuming.

You should choose a two-year fixed rate if you:

1. Think interest rates will fall – but not for a couple of years

2. Are worried that interest rates will rise in the next 2 years

3. Are planning to move house in the next few years

4. Don’t mind going through the remortgage process again in two years’ time

You should choose a five-year fixed rate if you:

1. Want certainty about your monthly payments for longer

2. Are worried rates won’t fall as predicted or might rise again

3. Plan to stay in your home for the next five years

4. Want to avoid remortgage fees again in two years’ time

A five-year fixed rate also gives you more time to build up equity in your home. With a repayment mortgage, you repay some of your mortgage debt each month. You can boost this by making overpayments, either as a lump sum or monthly.

Before committing to a fixed rate mortgage, check the early repayment charges. These normally apply for the duration of the fixed rate and can mean paying off your mortgage early, remortgaging, or moving house can incur a hefty fee.

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