One of the most important decisions when taking out a mortgage is choosing between a fixed rate and a variable rate. Both have genuine advantages — the right choice depends on your circumstances and attitude to risk.
Compare fixed and variable scenarios
Use our calculator to see how different rates affect your monthly payments.
Try the calculator →Fixed-rate mortgages
Your interest rate stays the same for an agreed period — typically 2, 3, 5 or 10 years. Advantages: complete certainty, protection if rates rise, easier to budget. Disadvantages: you won't benefit if rates fall, early repayment charges apply.
Variable-rate mortgages
Standard Variable Rate (SVR) — the lender's default rate, usually the most expensive option. Tracker mortgage — tracks the Bank of England base rate directly. Discount mortgage — set below the lender's SVR for a set period.
Which is better in 2026?
Many borrowers are opting for shorter fixed terms (2–3 years) to retain flexibility, while others prefer the security of a 5-year fix. The most popular choice in the UK remains the 2-year fixed rate — a balance of security and flexibility.
What happens when my fixed rate ends?
You'll automatically move onto your lender's SVR — almost always significantly higher. Start looking for a new deal 3–6 months before your current deal expires. You can often lock in a new rate up to 6 months ahead.