Mortgage Rate Types
Mortgage Rate Types Explained
Fixed, tracker, variable, discount and offset. Each one works differently and suits different people. Here is a plain English guide to help you choose.
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The Basics
How Your Rate Is Set Matters
The rate type decides whether your payments can change and how much flexibility you have.
- ✓Fixed: payments stay the same for the deal period
- ✓Tracker: moves with the Bank of England base rate
- ✓Standard variable: the lender's own rate, usually higher
- ✓Discount: a discount off the lender's variable rate
How We Help
How to Choose
Five questions to ask yourself.
Do You Need Certainty?
A fixed rate keeps payments steady.
Can You Handle Changes?
A tracker could go up or down.
How Long Will You Stay?
Match the deal length to your plans.
Do You Want to Overpay?
Some deals are more flexible.
What Are the Fees?
Compare the total cost, not just the rate.
Rate Types
Which Is Which?
A quick guide.
Common Questions
Rate Type Questions, Answered
The things people ask us most.
Is a fixed or tracker mortgage better?
It depends on whether you value certainty or flexibility, and on where rates go.
How long should I fix for?
It depends on your plans. Longer fixes give certainty but can have bigger exit charges.
What is a standard variable rate?
The lender's own rate, which you usually move onto when your deal ends.
What is an offset mortgage?
Your savings are set against your mortgage so you pay less interest.
Can I leave a tracker early?
Some trackers have no early repayment charges. Check the terms.
Do fixed rates have early repayment charges?
Usually, yes, during the fixed period.
Related guides
- What happens when your fixed rate ends
- Mortgage repayment calculator
- Can you remortgage early?
- Remortgaging: the risks and benefits
- All mortgage questions answered
Written by Tony Flynn, mortgage broker at Tony Flynn Mortgages, helping homebuyers across Lanarkshire and Scotland. This page is general information, not personal advice. Speak to Tony about your own circumstances.
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Not Sure Which Rate to Pick?
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