Autumn seems such a natural time to take stock of your finances. Children have gone back at school, the summer holidays are over and with Christmas looming many of us turn our attention to tidying up money matters before the big day strikes.
For mortgage borrowers, this season is particularly significant. A surprising number of fixed-rate deals come to an end around September and October, meaning plenty of homeowners are now facing an important decision: what next?
Do you fix again, take a punt on a tracker or (perhaps reluctantly) slip onto your lender’s Standard Variable Rate (SVR)?
FIXED-RATE DEALS
Fixed deals remain the most popular choice for one simple reason: certainty. You know exactly what you’ll be paying each month, regardless of what happens to interest rates. That stability is a comfort when household budgets are already stretched.
Right now, fixed rates are not as cheap as they were during the era of rock-bottom borrowing but they are more competitive than they were a year ago at the peak of rate hikes.
If you’re the kind of borrower who values peace of mind and hates surprises a fixed rate may still be your best bet.
But do remember that you’re locking in. If rates fall faster than expected, you won’t benefit until your deal ends.
TRACKER DEALS
Trackers normally move in line with the Bank of England base rate (plus a set margin). When the base rate goes down, your repayments fall. When it goes up, so do your monthly outgoings.
With the base rate currently at 4% and economists predicting cuts in 2026, trackers are a gamble on timing. If you believe rates will ease sooner, a tracker could pay off. If inflation proves stubborn and the Bank keeps rates higher for longer, you’ll be paying more.
Some lenders now offer tracker deals with no early repayment charges, which at least gives you the option to switch if the market moves in your favour.
STANDARD VARIABLE RATE DEALS
These usually represent the worst of both worlds and really should be avoided.
If your fixed or tracker deal ends and you don’t make an active choice, you’ll automatically roll onto your lender’s SVR.
This is typically far higher than both fixed and tracker deals and can change at the lender’s discretion.
The only real upside is flexibility in that there are usually no penalties for leaving.
But in most cases, SVR is the most expensive way to borrow. Unless you’re in a very specific short-term situation (for example, planning to sell soon), it’s rarely a smart long-term strategy.
So what to do?
The right answer depends on your personal circumstances. Here are some questions worth asking yourself before making a decision.
How much certainty do I need in my budget? If rising repayments would cause sleepless nights, a fixed deal is your friend.
How long am I planning to stay in this property? If you’re likely to move in the next couple of years, you may prefer a deal with no hefty exit penalties.
What’s my view on rates? Nobody has a crystal ball but reading the market matters. If you believe cuts are still a way off, fixing may give you comfort. If you think the Bank of England will act sooner, a tracker might be worth considering.
Finding the right deal is less about chasing the “perfect” product and more about choosing the mortgage that fits your lifestyle.
If you need stability to budget for Christmas and into the new year, fixing is hard to beat. If you’ve got some breathing room in your finances and you’re willing to ride out a bit of uncertainty, a tracker could reward you later.
And unless you really have no other option, don’t just drift onto your lender’s SVR, it’s usually the most expensive mistake borrowers make.
Autumn is a season of change and the mortgage market is no different.
Whether you’re moving home or remortgaging now is the time to act rather than wait. The best deals often go to those who plan ahead.
Remember, smart choices start with expert advice – speak to your mortgage adviser to get the best for your financial future.
UK Property and Finance Expert
