Fixed or Tracker Mortgage: Which Is Right for You?
When mortgage rates are changing, one of the most common questions we hear is: Should I choose a fixed-rate mortgage or a tracker? Both options have advantages and drawbacks, and the right choice depends on your personal circumstances, financial goals, and appetite for risk.
Fixed-Rate Mortgages
The Benefits
- Certainty: Your monthly payments won’t change, making budgeting easier.
- Protection: You’re shielded from potential rate rises during your fixed term.
The Drawbacks
- Less flexibility: If rates fall further, you won’t benefit.
- Early repayment charges: Switching before the end of your fixed term can be expensive.
Tracker Mortgages
The Benefits
- Potential savings: Payments decrease if the Bank of England base rate falls.
- Flexibility: Many tracker products have lower or no early repayment charges, making it easier to switch deals.
The Drawbacks
- Uncertainty: If rates rise again, so will your monthly payments.
- Budgeting challenges: Less predictability can make long-term planning harder.
What to Consider Before Deciding
Your Appetite for Risk
If you prefer peace of mind and predictability, a fixed rate may suit you. If you’re comfortable with some uncertainty and want to take advantage of possible savings, a tracker might be more appealing.
Your Financial Cushion
Can your budget handle higher payments if rates rise? If not, the safety of a fixed deal could be worth paying a little more for.
Your Long-Term Plans
If you expect to move house or make big financial changes soon, flexibility may matter more than locking into the lowest possible rate.
Why Advice Makes the Difference
Mortgage deals are constantly changing, and no two borrowers are alike. A professional adviser can help you weigh up not only the rates available but also the terms, fees, and how the product fits your bigger financial picture.
Make the Right Choice with Larkbridge Mortgages
At Larkbridge Mortgages, we help clients make informed decisions about whether to fix, track, or explore other options. With expert advice, you can feel confident that your mortgage suits your life – not just today, but for the years ahead. Contact us today to speak with one of our advisers.
