UK Mortgage Rate Comparison — Frequently Asked Questions
What is the difference between fixed, tracker, and standard variable rate (SVR) mortgages in the UK?
A fixed-rate mortgage locks your interest rate for a set period — typically 2, 3, or 5 years — providing predictable payments. A tracker mortgage follows the Bank of England base rate plus a fixed margin, so payments change when the base rate changes. SVR is the lender's standard variable rate, usually the highest rate and charged after your initial deal ends.
How does the Bank of England base rate affect my mortgage?
The BoE base rate directly determines tracker mortgage rates and influences fixed-rate pricing. When the base rate rises, tracker payments increase immediately. Fixed-rate mortgages are priced based on swap rates, which reflect market expectations of future base rate movements. Our comparison tool lets you model rate changes and see the impact on your payments.
Should I choose a 2-year or 5-year fixed-rate mortgage?
A 2-year fix offers lower initial rates and more flexibility to remortgage sooner but exposes you to rate changes at renewal. A 5-year fix provides longer payment stability and protection against rate rises but typically has a slightly higher rate and larger early repayment charges. The choice depends on your rate outlook and how long you plan to stay.
What factors affect UK mortgage rates?
UK mortgage rates are influenced by the Bank of England base rate, swap rates (which reflect future rate expectations), inflation, lender competition, and your personal circumstances including loan-to-value ratio, credit score, and whether you're a first-time buyer or home mover. Lower LTV ratios (larger deposits) get the best rates.
What happens when my fixed-rate mortgage deal ends?
When your fixed-rate deal ends, you automatically revert to the lender's standard variable rate (SVR), which is typically much higher. Most borrowers remortgage to a new deal before this happens. You can lock in a new rate up to 6 months before your current deal ends. Our comparison tool helps you evaluate your options.
