As we move through 2026, many UK homeowners are reaching the end of mortgage deals taken out during very different market conditions. Industry forecasts suggest that around 1.8 million fixed rate mortgages are due to expire this year. A large proportion of these were arranged when interest rates were significantly lower than they are today. For many borrowers, this means their next mortgage decision will feel very different from their last one.
The key question many are asking is whether to choose a fixed rate again or move onto a tracker. The right answer depends less on headlines and more on personal circumstances, risk appetite and timing.
The Current Market Context
Interest rates have eased compared to their recent peak, and lenders have gradually improved mortgage pricing. While rates are not back to the historic lows seen between 2019 and 2021, competition among lenders has increased and product choice has improved.
Many borrowers coming off five-year fixes taken in 2020 or 2021 may have secured rates between 1.5 and 2.5 percent. Those who fixed for two years in 2022 often locked in closer to 2.5 to 3.5 percent before rates rose sharply later that year. Moving onto a new deal in 2026 will almost certainly mean a higher rate than those historic lows, although current pricing is more stable than it was twelve months ago.
With the Bank of England having already reduced rates from their peak and markets expecting further gradual cuts, borrowers are weighing up whether to secure certainty now or leave themselves exposed to potential future reductions.
The Case for a Fixed Rate
A fixed rate mortgage offers stability. Your interest rate and monthly payment remain the same for the length of the deal, typically two or five years. For many households, that predictability is valuable. It allows for clear budgeting and removes the risk of payment increases if rates rise again.
In the current market, five-year fixed rates are often competitively priced, in some cases close to or even below two-year fixes. That reflects lender expectations that base rates may drift down gradually rather than fall sharply. For borrowers who prioritise peace of mind, fixing can feel like the safer option.
The trade-off is flexibility. If rates fall faster than expected those on fixed deals will not automatically benefit, and exiting early can trigger early repayment charges. Fixing works best when you are comfortable with your payment level and prefer certainty over potential upside.
The Case for a Tracker
A tracker mortgage moves in line with the Bank of England Base Rate, plus a set margin. When the Base Rate falls, your payments fall. If it rises, your payments rise as well.
For borrowers who believe rates will continue to reduce through 2026, a tracker can offer quicker access to lower payments. Some tracker products also have lower early repayment charges, giving greater flexibility to switch later.
The risk is that payments are not guaranteed. Even small rate increases can affect monthly affordability. Trackers tend to suit borrowers who have room in their budget to absorb fluctuations and who are comfortable with a degree of uncertainty.
The Risk of Doing Nothing
One of the most expensive outcomes is allowing your mortgage to roll onto your lender’s standard variable rate once your deal ends. Standard variable rates are usually significantly higher than new customer deals and can increase monthly payments substantially.
Reviewing your options several months before your deal expires allows you to secure a new rate in advance and avoid unnecessary cost. Even if rates improve slightly later in the year, having a plan in place provides protection against sudden changes.
Why Using a Broker Matters
Choosing between fixed and tracker products is not simply about comparing headline rates. It involves understanding how different lenders assess affordability, how early repayment charges work, and how products align with your future plans.
A bank can only offer its own range of products. It cannot compare the wider market or access specialist lenders that may offer better terms for your circumstances. A whole of market broker can assess options across hundreds of lenders and identify the most suitable solution for you.
Grange Mortgages provides whole of market advice, meaning clients benefit from access to a broad range of lenders rather than a single institution. This can be particularly valuable for borrowers with complex income, self-employment, bonus structures or changing circumstances.
Beyond product choice, there is also the benefit of personalised guidance. Rather than navigating rate movements alone, clients receive advice tailored to their financial position, plans and tolerance for risk.
Why Clients Choose Grange Mortgages
Grange Mortgages operates seven days a week, including evenings and weekends. That flexibility allows clients to arrange discussions around work and family commitments rather than trying to fit into standard banking hours.
Clients also value the continuity of service. Mortgages are reviewed before deals expire, market changes are explained clearly, and support continues beyond completion. The focus is on long term relationships rather than one off transactions.
So What Should You Do?
The right choice depends on your personal situation, your future plans and how comfortable you are with change in monthly payments. What matters most is reviewing your options early and making a decision based on informed advice rather than assumption.
For homeowners coming off low fixed rates, now is the time to assess your next step carefully. With access to the whole market and availability seven days a week, Grange Mortgages is well positioned to help you choose the structure that works best for you.