Should I fix my mortgage in 2026?.

Should I fix my mortgage in 2026?

Unfortunately, there’s no quick answer to this question. It’s not just about following and predicting interest rates. It all depends on your specific situation: what are your property plans? Do you want to pay regular monthly repayments of the same amount? Are you comfortable with risk? Whatever the answers, at Winwell Financial Consultancy we can help you make the right choice when it comes to your mortgage. 

Fixed and variable rates: what’s the difference?

Before we go on, let’s go over the basics. What’s the difference between fixed, variable rate and tracker mortgages?

Fixed-rate mortgages

With a fixed-rate mortgage, the lender gives you a specific interest rate for a set amount of time. Whatever happens to mortgage rates elsewhere, this rate will stay the same for as long as the fixed deal lasts. This could be two, three or five years, although seven and ten-year fixed rates are not unheard of. 

Standard variable rate (SVR) mortgages

A standard variable rate (SVR) is the rate you'll move to after your current mortgage deal ends (unless you switch to a new deal). SVRs are often higher than the rates available on new products, plus, the lender can change the rate whenever they want.  

Tracker mortgages

A tracker mortgage follows the Bank of England’s (BoE) base rate and will increase and fall in line with it. That means if the base rate drops, the interest rate you’re paying drops and your monthly repayments will reduce. If the base rate goes up, your monthly repayments will rise to cover the increase in interest. Tracker mortgages don’t match the base rate exactly. They’re usually set at a rate just above the base rate and can vary depending on your Loan to Value (LTV). 

Advantages of Fixing Your Mortgage

• There is a lot to be said for knowing exactly how much you’re going to pay in mortgage repayments each month. 
• A fixed-rate mortgage enables you to plan with certainty, budget and understand how much you can spend.  

Disadvantages of Fixed-Rate Mortgages

• If interest rates fall, your rate and payments won’t change. 
• If you decide you want to leave your fixed-rate mortgage early, there’s often a penalty. This can prove expensive if there’s a substantial mortgage balance outstanding.    
• Forgotten when your fixed deal ends? Be aware that you’ll automatically move to an SVR and higher payments.
• Overpayment restrictions: many lenders impose a cap on overpayments for fixed-rate mortgages, often limiting excess payments to 10%, which could make paying off your mortgage more difficult. 

Is a fixed-rate mortgage right for me? 

A fixed rate may suit you if you are: 

• On a monthly budget. A fixed-rate mortgage ensures you always pay the same if interest rates rise.
• Self-employed. Predictable payments help planning.

A tracker or variable rate mortgage may suit you if:

• Rates are expected to fall. If you believe rates may fall, a tracker mortgage could be worth considering, although there is no guarantee that rates will decrease.
• You plan to sell in under two years. You could incur an Early Repayment Charge (ERC).
• You are comfortable with rate fluctuation. A tracker mortgage may be cheaper.

Your options

As you can see, there’s no definite answer as to whether you should go for a fixed rate mortgage. Much depends on your intentions and your ability to adapt to changing payments. Your attitude to risk is another factor, which is why we recommend getting in touch with a Winwell professional to discuss your particular situation.  

Next steps

Read our article and want advice? It’s time to get in touch. At Enfield-based Winwell Financial Consultancy, we can compare products from over 70 lenders and provide tailored advice rather than a one-size-fits-all recommendation. 

Your home may be repossessed if you do not keep up repayments on your mortgage.
 Our brokerage fee is £500.