With Bank Rate at 4% after the Bank of England raised it from 3.75% on 5 November 2026, the choice between a fixed-rate and a tracker mortgage matters more than it has for years. The short answer is that a fixed-rate mortgage locks your interest rate and your monthly payment for a set period, usually two, five or ten years, while a tracker mortgage follows the Bank of England base rate, so your payments rise and fall with it. Which one suits you depends on whether you value certainty about your monthly payment or the chance to benefit if rates fall.

This guide explains how each type works, what happens when your deal ends, what a standard variable rate is, and what to check before you choose. All definitions come from MoneyHelper, the free and impartial service backed by the Money and Pensions Service, and the Bank Rate facts come from the Bank of England's November 2026 decision, checked on 9 November 2026.

What is Bank Rate and why does it matter for mortgages?

Bank Rate is the interest rate the Bank of England charges when it lends money to commercial banks, and it is the single most important influence on what borrowers pay. The Bank's Monetary Policy Committee, a group of nine people, meets about every six weeks to decide whether to change it. On 5 November 2026 it voted eight to one to raise Bank Rate by a quarter of a percentage point, from 3.75% to 4%, the first rise since August 2023. One member voted to raise it further, to 4.25%. The next decision is due on 17 December 2026.

MoneyHelper puts the current base rate at 4% in its mortgage guide, updated after the decision. Mortgage rates are usually higher than Bank Rate, because lenders add their own margin on top. The Bank's own data shows the effective rate actually paid on newly drawn mortgages was 4.63% in September 2026, before the rise, against 4.03% on the outstanding stock of mortgages. In other words, new borrowers were already paying well above Bank Rate before the November increase.

The reason for the rise is energy prices. Consumer Prices Index inflation was 3.5% in the twelve months to September 2026, above the Bank's 2% target, and the Bank expects it to reach around 5% by the middle of 2027 before falling as the effect of higher energy prices fades. That is the background against which every fixed and tracker deal is now priced.

What is a fixed-rate mortgage?

With a fixed-rate mortgage, the interest rate stays the same for the length of the deal. MoneyHelper explains that you will see them called a two-year fix, a five-year fix, or even a ten-year fix, and that your monthly repayments stay the same during this time, no matter what happens in the market. If Bank Rate rises, your payment does not change. If Bank Rate falls, your payment does not change either.

That certainty is the main attraction. Your monthly payment stays the same each month, which makes it easier to budget, and you are not affected by rising interest rates during your fixed term. Around nine in ten outstanding UK mortgage balances are on fixed rates, according to Bank of England and Financial Conduct Authority data, which shows how strongly most borrowers prefer that predictability.

There are trade-offs. Fixed rates are usually a bit higher than variable rates to start with, because the lender is taking the risk that rates rise. If interest rates go down during your fix, you will not save any money. And there might be charges if you want to leave the deal early: you are usually tied in for the fixed period, and early repayment charges can apply if you move, remortgage or pay off the loan before the deal ends. MoneyHelper also notes that you can often pay extra on a fixed mortgage, up to 10% a year without a fee, which is worth checking in the small print of any deal.

What is a tracker mortgage?

A tracker mortgage is a type of variable-rate mortgage. Instead of staying fixed, its interest rate follows another rate, usually the Bank of England base rate, plus a set percentage agreed with the lender. MoneyHelper gives a simple example: if the base rate goes up by 0.5%, your rate goes up by 0.5%. With Bank Rate now at 4%, a tracker priced at base rate plus one percentage point would charge 5%, and if the Bank raised its rate by a quarter of a point, your rate would rise by exactly the same quarter of a point.

Tracker rates usually last for two to five years, although some lenders offer trackers that last for the whole mortgage term or until you switch to another deal. The main advantage is that if the rate being tracked goes down, your mortgage payments go down too. Trackers also tend to be more flexible: you are not usually tied in, so you can switch deals or providers early, and there are usually fewer or no limits on making extra payments. You can often switch early without a fee, though you should always check with your lender.

The risk is the mirror image of the benefit. If the rate being tracked goes up, your mortgage payments go up too, and that can happen quickly: MoneyHelper notes that if the base rate goes up by 0.25%, your monthly cost will go up by the same amount. After the 5 November rise, tracker borrowers are the first to feel it, because their rate moves with Bank Rate. MoneyHelper also warns to check the small print and make sure your lender cannot raise rates when the rate your mortgage is linked to has not changed: it is rare, but it has happened before.

Fixed vs tracker mortgage compared

The difference between the two comes down to one thing: certainty against flexibility. A fixed rate gives you payment stability for a set period. A tracker gives you movement, which means your payments can rise or fall depending on the rate being tracked. Neither is right for everyone, and the best choice depends on your budget, your plans and how much risk you can afford.

Fixed deals can also move before Bank Rate does. Lenders price fixed rates on where markets expect interest rates to go, so the cost of a new fix can rise or fall ahead of the Bank's next decision. The Bank's November minutes noted that benchmark two-year mortgage rates rose by nearly half a percentage point between early September and the decision, before the rate rise itself happened. That is why borrowers who waited for the decision found fixed deals had already become more expensive.

What is a standard variable rate (SVR)?

The standard variable rate is the interest rate a mortgage lender uses for its standard mortgage loan, and it is what you usually move onto when a fixed or tracker deal ends, unless you take a new deal or remortgage. MoneyHelper explains that each lender sets its own SVR, that the rate can change at any time, and that it is usually higher than the lender's other mortgage products. Some SVRs are up to 5% higher than the Bank of England base rate, which can make them an expensive option.

Moving onto the SVR is the most common expensive mistake in the mortgage market. With Bank Rate at 4%, an SVR could be far above the rate you were paying on your fix, and your monthly payments would rise accordingly. The SVR does have advantages: you have freedom to leave at any time, and there is usually no limit on making extra payments, even in large amounts. But for most borrowers the right move is to arrange a new deal before the old one ends. MoneyHelper notes that if your current deal ends in the next six months, you can often lock in a new rate now without any commitment.

What about discounted-rate mortgages?

A discounted-rate mortgage is a third option worth knowing about. It is a discount on the lender's SVR that applies for a set time, typically two or three years. MoneyHelper gives an example: one bank might offer a 2% discount off an SVR of 6%, so you pay 4%, while another offers a 1.5% discount off an SVR of 5%, so you pay 3.5%. Although the first discount is larger, the second deal is cheaper, which is why you should compare the rate you actually pay, not the size of the discount.

Discounted rates start lower, so your monthly payments are smaller, and if the lender cuts its SVR your payments go down too. But they are hard to budget for, because the lender can raise the rate whenever it wants, and if Bank Rate goes up your discounted rate might go up too. You might also have to pay a fee if you leave before the discount period ends.

How to compare fixed and tracker deals

When you compare mortgages, MoneyHelper advises looking at more than just the headline rate. Always compare the Annual Percentage Rate of Charge, or APRC, which tells you the yearly total cost of your mortgage including all fees and charges, assuming you keep it for its full term. Lenders must state the APRC on a mortgage deal, and it is also shown on comparison websites.

Fees matter as much as rates. If you pay an upfront fee, you might get a lower interest rate, but it might not save you money overall. If you choose a mortgage without a fee, you might face a higher rate. Work out the total cost over the deal period, including the fee, rather than comparing rates alone. Also check the early repayment charges, the overpayment allowance, whether the deal is portable if you move home, and what happens at the end of the deal.

MoneyHelper suggests asking yourself a few questions before you choose: do you want fixed monthly payments, or do you want to benefit if interest rates fall? Do you want the flexibility to overpay, underpay or take payment breaks? Do you want to be able to move lenders or remortgage when you want? And, most importantly, can you afford your repayments if the interest rate increases above a certain level? If a quarter-point rise would stretch your budget, a fixed rate's certainty may be worth more than a tracker's flexibility.

Most mortgages are now portable, meaning you can take your deal with you when you move to a new home, but porting is still treated like applying for a new mortgage, so you will need to meet the lender's affordability checks to be approved. If you think you will move before the deal ends, consider deals with low or no early repayment charges. Independent mortgage advisers can search the market on your behalf and recommend the best deal, and comparison websites can help you research what is available, though they will not all give you the same results, so MoneyHelper recommends using more than one.

Frequently asked questions

Will my fixed-rate mortgage payment change after the Bank Rate rise to 4%? No. If you are on a fixed rate, your payments will not change until your fixed-rate period ends. The rise affects tracker and variable-rate borrowers, and the rate you will pay when you next remortgage.

How quickly does a tracker mortgage change after a Bank Rate rise? A tracker follows Bank Rate directly, so your rate rises by the same amount as the Bank's move, usually from your next repayment. After the 5 November rise of 0.25 percentage points, tracker rates rose by 0.25 points.

What happens when my fixed-rate deal ends? Unless you take a new deal or remortgage, you move onto your lender's standard variable rate, which is usually higher. Arrange a new deal before the fix ends, and note that you can often lock in a new rate up to six months early.

Is a tracker mortgage cheaper than a fixed mortgage? Not necessarily. Tracker rates often start lower than fixed deals, but they can become more expensive if interest rates rise, and fixed deals protect you from rises for the whole deal period. Compare the APRC and the total cost, not just the starting rate.

Can I overpay a fixed-rate mortgage? Usually yes, often up to 10% of the balance a year without a fee, according to MoneyHelper. Tracker mortgages usually have fewer limits or none, but always check your own agreement.

Sources: MoneyHelper, "Understanding mortgages and interest rates" and "How will interest rates affect my mortgage?", checked 9 November 2026; Bank of England, Monetary Policy Summary and minutes, 5 November 2026, for the 4% Bank Rate, the 8 to 1 vote and the 17 December 2026 decision date. This article is general information, not personal financial advice: speak to an independent mortgage adviser before choosing a deal.