Buying a home is one of the biggest financial commitments most of us will ever make. Choosing the right mortgage can shape not only your monthly budget but also your long-term financial security.
One of the most common questions our clients ask is whether to go with a fixed-rate or a variable-rate mortgage. Unfortunately, there isn’t a one-size-fits-all answer. The best option depends on your circumstances, the amount of risk you’re willing to take, and the economic climate.
In this guide, we’ll explain the difference between fixed and variable rate mortgages, what happens when your deal ends, and, importantly, what are fixed mortgage rates today in the UK. By the end, you’ll have a clearer idea of which mortgage route suits you best.
A fixed rate mortgage is a home loan where the interest rate stays exactly the same for a set amount of years. This could be two years, five years, or even as long as ten years.
During this period, your monthly repayments will not change. It doesn’t matter if the Bank of England base rate goes up or down, or if lenders adjust their products – your payment is locked in.
Having stability is one of the main reasons fixed-rate mortgages are so popular, especially with first-time buyers or anyone who wants certainty over their household budget. If you know exactly how much is leaving your account each month, it’s easier to plan ahead and avoid any nasty surprises.
At the end of your fixed period, your mortgage doesn’t just disappear. Instead, your lender will automatically place you onto their standard variable rate mortgage, often referred to as an SVR.
The SVR is usually higher than the fixed rate you were paying. Because it can change at any time, your repayments can rise quickly.
This transition can take you by surprise if you’re not prepared, and can mean you’re charged hundreds of pounds extra in monthly payments.
This is why most borrowers choose to remortgage before their fixed deal ends. A mortgage broker, like our team at Fees Free, can usually start searching for a new product up to six months before your deal expires. By switching in advance, you can avoid being moved onto an SVR and secure a new fixed or variable deal that suits you.
One of the most common questions we’re asked is what fixed mortgage rates are today. It’s understandable given the volatility of the housing market over the last few years.
In 2022 and 2023, rising inflation and base rate hikes caused mortgage rates to climb steeply. Homeowners saw their monthly payments increase dramatically when they came to remortgage.
In 2025, the situation is stabilising, though rates remain higher than the historic lows we saw a decade ago. The current markets are forecasting that the Base Rate (the interest rate set by the bank) will stay at 4% for the rest of 2025, with a potential cut in 2026.
Two-year and five-year fixed mortgage deals are the most common. The rate you are eventually offered will depend on your deposit, credit history, and income. Some deals also come with arrangement fees, cashback offers, or free valuations, all of which affect the true cost of the mortgage.
Because mortgage rates change frequently, the best way to know the rates available today is to speak to one of our advisors, who will search the entire market for you. This ensures you’re not just relying on comparison sites, which don’t show the full picture.
Unlike a fixed deal, a variable rate mortgage doesn’t lock in your repayments. Instead, the amount you pay each month fluctuates. The interest rate is typically linked to either the lender’s standard variable rate or the Bank of England base rate.
Variable mortgages come in different forms. A standard variable rate mortgage is the default your lender moves you to once your fixed deal ends. A tracker mortgage follows the base rate plus a set percentage. A discount mortgage gives you a reduction on the lender’s SVR for a set period of time.
All of these products share one thing in common: your payments can go up or down depending on market conditions.
The way a variable mortgage works is that when interest rates rise, your monthly repayments will increase. When they fall, your repayments go down.
This unpredictability can make budgeting more difficult. For some people, this is a deal breaker. For others, particularly those who believe rates are likely to fall, it’s an opportunity to save money compared to a fixed deal.
Variable mortgages can sometimes be more flexible than fixed products. Plenty of deals don’t come with high early repayment charges, meaning you can switch or pay off your mortgage more easily. This makes them attractive if you think you might move home soon or if you expect to receive a lump sum that would allow you to repay early.
With the Bank of England expected to cut the base rate in early 2026, variable-rate mortgages could become cheaper in the months ahead. Tracker and SVR deals are most directly affected by base rate cuts, so borrowers on variable rates may see savings sooner than those on fixed deals.
That said, many of these cuts are already priced into fixed rates, which have dropped below 4% for two- and five-year deals.
A fixed mortgage gives you certainty and protects you if forecasts change, while a variable deal could work if you have financial flexibility and are happy to take a little more risk. For most first-time buyers, fixed rates remain the safer, more predictable option. If you’re unsure whether a variable-rate mortgage is right for you, contact our mortgage experts at Fees Free.
The debate between fixed-rate vs variable-rate mortgages is not about which product is universally better, but which is better for you.
A fixed mortgage is generally better if you want certainty and prefer to budget without worrying about rates rising. A variable mortgage may be better if you want flexibility and believe that interest rates are likely to come down in the near future.
It is also worth remembering that your choice is not permanent. At the end of your deal, you can always reassess and switch to a different product. Many homeowners alternate between fixed and variable rates at different stages of their financial journey, depending on what the market is doing at the time.
Deciding between a fixed rate and a variable rate mortgage can be complicated, but you don’t have to figure it out on your own.
At Fees Free Mortgages, our experienced advisors compare deals across the whole market to find the most suitable option for you. Because we are completely fee-free, you’ll receive professional, impartial advice without paying a penny.
We’ll explain your options, walk you through what happens when your current mortgage ends, and help you secure the best available rates for your circumstances.
If you’re ready to take the next step, get in touch with our team today and find out whether a fixed or variable mortgage could work best for you.
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