Fixed, Tracker, or Variable — Which Mortgage Type Is Right for You?
At Keevelia Mortgage Solutions, we know that choosing the right mortgage type can feel like navigating a maze of confusing terms and options. Whether you’re buying your first home or moving up the ladder, it’s important to understand your choices so you can make an informed decision that suits your life — and your finances.
In this blog, we break down the three most common types of mortgage rates: fixed, tracker, and variable. Let’s take a closer look.
Fixed-Rate Mortgages
A fixed-rate mortgage does what it says on the tin — your interest rate is locked in for a set period, usually 2, 3, 5, or even 10 years. This means your monthly payments won’t change, no matter what happens to interest rates.
Who it’s good for:
✔ People who like certainty in their budget
✔ First-time buyers who want to keep things simple
✔ Anyone concerned about interest rates rising
Things to consider:
You won’t benefit if rates fall.
There can be early repayment charges if you want to switch deals before the fixed period ends.
Tracker Mortgages
A tracker mortgage follows (or “tracks”) the Bank of England base rate, plus a set percentage. So, if the base rate goes up or down, so does your mortgage rate.
Who it’s good for:
✔ Buyers who believe interest rates will fall (or stay low)
✔ Those comfortable with a bit of payment fluctuation
Things to consider:
Your payments could rise if rates go up.
Some tracker deals have no early repayment charges — offering more flexibility.
Variable-Rate Mortgages
With a variable mortgage (sometimes called a Standard Variable Rate or SVR mortgage), your lender sets the rate — and can change it at any time. This type of mortgage is often what people end up on after their initial deal ends.
Who it’s good for:
✔ Generally, not many people choose this option unless they’re between deals
Things to consider:
Rates (and payments) can change without warning.
Often more expensive than other options.
How Keevelia Can Help
Every buyer’s situation is different, and there’s no one-size-fits-all mortgage. Our job at Keevelia Mortgage Solutions is to help you weigh up your options, understand the risks and benefits, and choose a deal that fits your plans — both now and in the future.