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Imagine having an extra £350 in your bank account – enough to cover a boiler service, pay your annual home insurance premium or make a dent in your Christmas spending.
It might sound unlikely, but that’s how much some borrowers with tracker mortgages have saved in 2025 so far.
Fixed-rate mortgages remain the go-to option for most homeowners. Data from Moneyfacts shows that 92% of searches in the past 30 days were for fixed-rate deals. But with the Bank of England base rate falling, are more borrowers missing a trick by overlooking trackers?
Here, Which? explains the pros and cons of tracker mortgages, who they suit best and the rates currently on offer.
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We often focus on fixed-rate mortgages, and for good reason. They're the most popular type. The biggest benefit of a fixed rate is the guarantee of consistent monthly repayments, giving borrowers peace of mind for the length of the deal.
Trackers, on the other hand, move in line with an external index – usually the Bank of England base rate. If the base rate goes up, your repayments rise. However, if it falls, your monthly costs also drop.
So far in 2025, that’s worked in favour of tracker customers. With three base rate cuts already this year, tracker borrowers have saved an average of £352.71, according to UK Finance.
Looking ahead, 2026 and 2027 are unlikely to bring as many cuts. The base rate is expected to stabilise over the next year. Even so, trackers could still see repayments fall twice in the next 12 months.
However, fixed-rate deals are currently cheaper at the outset. That’s because lenders tend to price in expected rate cuts ahead of time. Trackers, by contrast, only fall after the Bank of England acts.
You’re also likely to find more choice with a fixed rate. When we checked on 3 September 2025, there were 6,627 fixed-rate deals on the market compared with just 362 trackers.
To help you understand the impact of your mortgage choice, we compared monthly repayments for the cheapest two-year tracker deal with the cheapest two-year and five-year fixes, across three loan-to-value (LTV) bands.
We based the figures on a £270,000 mortgage over a 25-year term.
In all three cases, the two-year fix had the lowest monthly repayment. Tracker mortgages were between £55 and £67 more expensive each month, depending on the LTV, with the smallest difference at 60% LTV.
Of course, unlike fixes, tracker repayments can go down over time, but they can also rise if the base rate increases again
| 60% | £1,441.61 | £1,386.69 | £1,402.89 |
| 75% | £1,459.67 | £1,392.57 | £1,417.72 |
| 90% | £1,530.01 | £1,464.21 | £1,468.75 |
Top rates sourced from Moneyfacts
Tracker mortgages can be a good option for borrowers who want flexibility, especially as many come without early repayment charges.
Nicholas Mendes, mortgage technical manager at broker John Charcol, says that tracker deals might appeal to those who plan to move soon, expect a change of circumstances or want to remortgage quickly if better fixed rates emerge.
But he warns that they won’t suit everyone: 'Trackers certainly have their place, and they can be suitable in the right circumstances. It's important to speak with a mortgage broker, as there may be alternative products that fit your situation just as well.
'For example, a short-term fixed rate of one year or 18 months, a fixed rate with more generous overpayment allowances to reduce the impact of early repayment charges or even a split mortgage with part on a tracker and part on a fixed deal.
'Trackers only really make sense for borrowers who prize flexibility. For those who need stability above all else, sticking with a fixed rate will usually make more sense.'
Every day, we run an analysis of the best mortgage rates for fixed-rate and tracker mortgages.
Our tables show the best two-year tracker rates available, whether you’re a first-time buyer, home mover or are remortgaging.
| 60% | Halifax | 70% | 4.11% | £1,499 | 7.49% |
| 60% fee free | NatWest | 71% | 4.41% | £0 | 6.99% |
| 65% | Halifax | 70% | 4.23% | £1,499 | 7.49% |
| 65% fee free | Barclays | 68% | 4.5% | £0 | 5.99% |
| 70% | Halifax | 70% | 4.23% | £1,499 | 7.49% |
| 70% fee free | Barclays | 68% | 4.5% | £0 | 5.99% |
| 75% | Halifax | 70% | 4.23% | £1,499 | 7.49% |
Table notes: Data from Moneyfacts, updated daily. Customer scores are based on a survey of 3,556 members of the public in August and September 2024, and combine overall satisfaction with likelihood to recommend the provider. The average customer score is 70%. To become a Which? Recommended Provider, a lender must get a top customer score, consistently offer competitive deals and be fully covered by the Financial Conduct Authority banking standards regime. 'Revert rate' is the standard variable rate (SVR), which is the mortgage rate you'd be transferred onto when your deal ended if it remained unchanged between now and then.
| 60% | Halifax | 70% | 4.11% | £1,499 | 7.49% |
| 60% fee free | NatWest | 71% | 4.41% | £0 | 6.99% |
| 65% | Halifax | 70% | 4.23% | £1,499 | 7.49% |
| 65% fee free | Barclays | 68% | 4.5% | £0 | 5.99% |
| 70% | Halifax | 70% | 4.23% | £1,499 | 7.49% |
| 70% fee free | Barclays | 68% | 4.5% | £0 | 5.99% |
| 75% | Halifax | 70% | 4.23% | £1,499 | 7.49% |
Table notes: Data from Moneyfacts, updated daily. Customer scores are based on a survey of 3,556 members of the public in August and September 2024, and combine overall satisfaction with likelihood to recommend the provider. The average customer score is 70%. To become a Which? Recommended Provider, a lender must get a top customer score, consistently offer competitive deals and be fully covered by the Financial Conduct Authority banking standards regime. 'Revert rate' is the standard variable rate (SVR), which is the mortgage rate you'd be transferred onto when your deal ended if it remained unchanged between now and then.
| 60% | Halifax | 70% | 4.11% | £1,499 | 7.49% |
| 60% fee free | Barclays | 68% | 4.5% | £0 | 5.99% |
| 65% | Halifax | 70% | 4.23% | £1,499 | 7.49% |
| 65% fee free | Barclays | 68% | 4.5% | £0 | 5.99% |
| 70% | Halifax | 70% | 4.23% | £1,499 | 7.49% |
| 70% fee free | Barclays | 68% | 4.5% | £0 | 5.99% |
| 75% | Halifax | 70% | 4.23% | £1,499 | 7.49% |
Table notes: Data from Moneyfacts, updated daily. Customer scores are based on a survey of 3,556 members of the public in August and September 2024, and combine overall satisfaction with likelihood to recommend the provider. The average customer score is 70%. To become a Which? Recommended Provider, a lender must get a top customer score, consistently offer competitive deals and be fully covered by the Financial Conduct Authority banking standards regime. 'Revert rate' is the standard variable rate (SVR), which is the mortgage rate you'd be transferred onto when your deal ended if it remained unchanged between now and then.
Financial markets are currently pricing in one more base rate cut in 2025. This is expected in December. Whether it happens will depend on economic data over the next few months.
Inflation is a key concern. After a period of decline, it has now risen for two months in a row, reaching 3.8% in July. If this trend continues, the Bank of England may delay further rate cuts.
There are already signs of caution within the Monetary Policy Committee (MPC). Catherine Mann, one of the nine MPC members, recently argued that ‘a more persistent hold on bank rate is appropriate right now, to maintain the tight (but not tighter) monetary policy stance needed to lean against inflation persistence’.
