My Mortgage Rate Is Ending Soon – Should I Fix, Go Tracker or Wait? (2026 Guide)

If your mortgage deal is coming to an end, you are in good company. Thousands of homeowners across Oxford, Bicester and the wider UK are facing the same decision right now: do you fix again, jump on a tracker, or sit tight and see what happens?

It is one of the most common questions we get at Drummonds Finance Group, and the honest answer is that it depends on your circumstances. But there is a lot we can explain about the current market and what each option actually means for your finances in 2026.

In this guide, we will walk you through your three main choices, what the Bank of England rate outlook looks like this year, and what you should be doing right now before your deal ends.

What Happens When Your Mortgage Deal Ends?

When your fixed rate or tracker deal expires, your lender does not simply let you float along at the same rate. Instead, they will move you onto their Standard Variable Rate, usually called the SVR. This rate is set entirely at the lender's discretion. It is not tied to the Bank of England base rate in any direct way, and it can go up or down whenever the lender decides.

For most borrowers, the SVR is significantly higher than the deal rate they were on. We regularly see clients paying a lot more per month simply because they did not take action when their fix ended. That is money you do not need to lose.

The good news is that most lenders will let you secure a new deal up to three months before your current one expires, often without any early repayment charge. That means you can start planning now, even if your deal has a few months left to run.

Option 1: Fix Your Rate Again

A new fixed-rate mortgage gives you exactly what it says, a guaranteed monthly payment for a set period. The most common options in 2026 are two-year and five-year fixes, though three-year and ten-year products also exist.

Why fixing makes sense:

Predictability is the single biggest reason people choose to fix. If you are budgeting carefully, managing a buy-to-let portfolio, or simply do not want any surprises on your mortgage statement, a fix removes the uncertainty. You know exactly what you will pay for the next two or five years, regardless of what happens with inflation or the Bank of England.

Fixed rates also offer protection if rates were to rise again. After the sharp increases of 2022 and 2023, many borrowers are understandably cautious about leaving themselves exposed to further upward moves.

The trade-off:

The main downside of fixing is that you are locking in. If rates fall significantly after you fix, you will be stuck at the higher rate until your deal ends, or face an early repayment charge to get out. Most fixed-rate mortgages carry an ERC of between 1% and 5% of the outstanding balance, depending on how far through the deal you are, so switching early can be expensive.

Option 2: Go on a Tracker Mortgage

A tracker mortgage follows the Bank of England base rate, usually at a set margin above it. So if the base rate is 4.5% and your tracker is set at base rate plus 1%, you would pay 5.5%. If the base rate drops to 4%, your rate drops to 5% automatically.

Why a tracker could work well right now:

The Bank of England base rate has been held at elevated levels since the inflation surge, but most market commentators and swap rate forecasts going into 2026 suggest the direction of travel is downward. If you believe rates will fall meaningfully over the next one to two years, a tracker allows you to benefit from every cut in real time, without having to remortgage again each time.

Trackers also tend to have lower early repayment charges than fixed deals, and many come with no ERC at all. That gives you the flexibility to switch to a fix at any point if the rate outlook changes, without paying a penalty.

The risk:

Your payments are not guaranteed. If the base rate were to rise, your monthly payments would increase with it. For most borrowers this is manageable in the short term, but it does require a degree of financial resilience and an honest look at your household budget.

Option 3: Wait and Do Nothing

Some borrowers decide to sit on their lender's SVR for a period, particularly if they expect rates to fall sharply in the near future and want to keep their options open.

This is rarely a good idea for most people. SVRs currently sit well above the best fixed and tracker deals available on the open market. Even a modest improvement in interest rates is unlikely to close that gap quickly enough to justify the extra cost you are paying in the meantime.

There are some situations where short-term SVR exposure makes sense, for example if you are planning to sell the property within the next few months and want to avoid an ERC. But for most homeowners, rolling onto the SVR is simply a more expensive version of doing nothing.

If you are genuinely uncertain, the better move is usually to take a tracker with no early repayment charge, so you retain flexibility without paying the SVR premium.

What Is the Mortgage Rate Outlook for 2026?

The Bank of England base rate has been one of the defining financial stories of the past three years. After aggressive increases through 2022 and 2023, the rate peaked and has since come down gradually. As of early 2026, the base rate sits at a level that still feels elevated by historical standards, but market forecasts suggest further cuts are likely as inflation continues to cool.

Swap rates, which are the wholesale market rates that lenders use to price fixed rate mortgages, have been trending downward. This means fixed rates available to borrowers have already come down from their 2023 peaks, and there may be more to come.

The important caveat is that nobody can predict with certainty how fast or how far rates will fall. Geopolitical events, domestic inflation surprises, and changes in government policy can all shift the outlook quickly, as we have seen repeatedly in recent years. This is exactly why speaking to a whole-of-market broker matters, because the right product depends not just on the market but on your personal financial position, risk tolerance, and plans for the property.

Can I Switch Before My Deal Ends?

Yes, in many cases you can. Most lenders allow you to lock in a new deal up to six months before your current one expires, so you are not left scrambling at the last minute. Some lenders will even let you reserve a rate and then switch to a better one if rates improve before completion, so you are not penalised for acting early.

At Drummonds Finance Group, we will check your current deal, identify exactly when your ERC period ends, and start comparing the market well in advance. The earlier you get in touch, the more options you tend to have.

Two-Year Fix vs Five-Year Fix: Which Should You Choose?

If you are leaning toward fixing, the next question is usually how long to fix for.

A two-year fix is sensible if you believe rates will fall significantly in the near term and you want to benefit from lower deals in 2027 or 2028. The trade-off is that you will be remortgaging again sooner, with all the admin and potential product fee costs that are involved.

A five-year fix offers more certainty and insulation from rate volatility, but you are committing to a longer period. If your circumstances change, for example, if you want to sell, move, or overpay significantly, you may find yourself restricted or facing a higher ERC.

There is no universally correct answer. It comes down to your plans for the property, your outlook on rates, and how much certainty you need in your budget.

Fix or Tracker: A Quick Summary

Fix if: You want predictable payments, you are concerned rates could rise again, or you need certainty for budgeting purposes.

Track if: You believe rates will fall meaningfully in the near term, you value flexibility, or you want the option to switch without an ERC.

Avoid SVR unless: You are selling in the very short term and the cost of an ERC outweighs the SVR premium.

Why Work With Drummonds Finance Group?

We are a fully independent, whole-of-market mortgage broker based in Oxfordshire, working with clients across Oxford, Bicester and the rest of the UK. We do not favour any particular lender, and we are not tied to any bank or building society. Our job is to find the best deal available for your situation, not the most convenient one for us.

Whether your mortgage is with a high street lender, a specialist buy-to-let provider, or a smaller building society, we can review your options and help you make a confident, informed decision. We offer clear, jargon-free advice with no pressure, and our standard broker fee is £899, payable only on completion.

Ready to Review Your Mortgage?

Do not wait until your deal ends and you roll onto the SVR. Get in touch with our team today, and we will review your current mortgage, check your remortgage options, and help you decide whether a fix or a tracker is the right move for 2026.

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