Fixed vs. Tracker vs. Variable Mortgages — What’s Right for You?
When Karen and Michael from Haddenham came to us earlier this year, they were in the thick of it — juggling school runs, work deadlines, and house viewings every weekend. They were ready to buy their forever home… but stuck on one thing:
“Do we go with a fixed rate, tracker, or variable?”
It’s one of the most common questions we hear — and the answer isn’t one-size-fits-all.
So we took them through it, the same way I’ll walk you through it now.
🔒 Fixed-Rate Mortgage
Karen liked the idea of stability. A fixed rate meant knowing exactly what they’d pay each month — no surprises.
With a fixed-rate mortgage:
Your interest rate stays the same for 2, 3, 5 or 10 years
Your monthly payments won’t change during that term
You’ll likely have early repayment charges if you want to switch deals before it ends
✅ Best for: People on a budget, or those who prefer certainty
📉 Tracker Mortgage
Michael was intrigued by the idea of saving if rates dropped.
Tracker mortgages follow the Bank of England base rate — if the rate goes down, so do your payments. If it goes up… so do your payments.
You’re “tracking” a benchmark (usually base rate + a set percentage)
Often come with lower initial rates
May have fewer early repayment penalties
✅ Best for: Buyers willing to ride the wave and possibly save long-term
🌊 Standard Variable Rate (SVR)
This is usually what you fall onto after a fixed or tracker deal ends — and it’s the least predictable.
Rates are set by the lender and can change at any time
Usually higher than fixed or tracker options
No fixed term — you can leave anytime
❌ We don’t recommend staying on this unless you’re planning to move or refinance very soon.
What Did Karen and Michael Choose?
After reviewing their budget, future plans, and appetite for risk, they chose a 5-year fixed deal with a competitive rate. It gave them peace of mind and predictable payments while settling into their new home and life.
They now live just outside Ely, and they’ve already recommended us to two of their neighbours!
💡 What’s Right for You?
It depends on:
Your income stability
Whether you’re planning to move in the next few years
How you feel about possible rate changes
Your monthly budget flexibility
The good news? You don’t have to figure it out alone.
At Cambs Ely Mortgages, we don’t just show you numbers — we explain what those numbers mean for your life, now and in the future.
📞 Ready to Chat?
Whether you're a first-time buyer, remortgaging, or just starting to explore your options — we're here to help.