Should you take a fixed or tracker mortgage? The cheapest fixes now start from 4.75% and tracker rates from below 4%

The UK mortgage market is experiencing a prolonged period of volatility, with regular fixed- and tracker-rate mortgage price hikes from virtually all banks and building societies.

 

Most fixed-rate mortgages have risen by over 1% in recent weeks, and the Bank of England has warned that the US-Israel war on Iran could increase monthly mortgage payments for more than 1 million UK households. While over 7,000 mortgages are still available, a reported 1,500 have been withdrawn.

 

 

 

Feature	Fixed-Rate Mortgage	Tracker Mortgage
Stability	High: Monthly payments are locked in for a set term (e.g., 2, 5, or 10 years).	Low: Rates fluctuate directly in line with the Bank of England (BoE) base rate.
Current Pricing	Higher: Many 2-year fixed rates are priced between 4.75% and 5.50%.	Lower: Current leading tracker deals are around 3.95% up to 4.55%. The lowest tracker rates are only available if you have a larger deposit.
Flexibility	Low: Usually carry significant Early Repayment Charges (ERCs). Often 10% overpayment per annum.	High: Many products have low or no ERCs, allowing for easier switching.
Risk	Protected: You are shielded if the base rate rises. If you have a larger deposit or equity in your home, you are paying a higher rate at the moment if you take a current fix.	Exposed: Your monthly payments will increase almost immediately if the BoE raises the base rate.

 

Interest rate outlook: What’s next?

We are really in an uncertain period where we need the war to stop and world trading to return to more normal levels before mortgage rates will probably come back down again. The Bank of England base rate currently stands at 3.75% aftern being held on 19 March 2026. The next base rate decision is on 30 April 2026.

• Near-Term base rate: Prior to recent geopolitical events, markets expected cuts toward 3%. Now, economists are divided. Some predict the rate will be held at 3.75% for the rest of 2026, while others warn of potential hikes to 4.25% or higher to combat "Trumpflation" and energy-driven inflation.
• Fixed rate trends: Lenders such as Santander, NatWest, and Barclays have recently increased their fixed rates in response to rising swap rates. Experts suggest fixed rates may continue to edge up in the immediate term. 
• Discounted variable rates: Many lenders, mainly building societies, offer discounted rates that normally have a set margin off their standard variable rates. While some of these are low at the moment, lenders can increase them even if the Bank of England base rates are reduced or held. 

Pick of the mortgage rates and lenders (April 2026)

Based on current data, these lenders are offering some of the most competitive initial rates across various products.

Leading fixed rates and lenders (Purchase)

• 2-year fixed: NatWest (starting from around 4.8% with £1,495 fee) and Nationwide for Intermediaries (starting from 4.65% with £1,499 fee). Barclays (from 4.65% with £1,499 fee).
• 5-year fixed: NatWest (starting from around 4.90% with £1,495 fee) and Nationwide Building Society (from 4.90% with, £1,499 fee). Barclays (from 5% with £899 fee).
• 10-year fixed: Nationwide (From around 5.2%, £999 fee).

Leading tracker & variable rates and lenders

• 2-year variable/tracker: Halifax (from around 3.95%, £1,499 fee), Barclays (from 4%, £899 fee), and HSBC (from 4.4%).
• 3-year variable: Newbury Building Society (from 4%, £850 fee).

Should you take a fix or a tracker?

Aaron Strutt, product director at Trinity Financial, says: "Choosing a fixed rate if you need absolute budget certainty or believe the Bank of England may be forced to hike rates significantly higher than current levels. You could take a tracker if  you want lower initial monthly payments and have the financial buffer to handle potential rate increases, or if you value the flexibility to switch to a fix when you like without heavy early repayment charges."

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change.

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