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

Liam Drummond
2 days ago
3 min read

If your current mortgage deal is ending soon, you're not alone. Thousands of homeowners across Oxfordshire and the UK are coming to the end of their fixed rate and wondering what to do next. The big questions we hear every day include:

Should I fix again or go on a tracker?
Can I switch early without paying penalties?
Are interest rates likely to drop later this year?

In this guide, we’ll break down the pros and cons of each option, explain what’s happening in the mortgage market right now, and help you make a more confident decision.

What Happens When My Mortgage Deal Ends?

When your fixed or tracker deal ends, your lender will usually move you to their Standard Variable Rate (SVR). This rate is often much higher than what you were paying before. SVRs can go up or down at the lender’s discretion and are not linked directly to the Bank of England base rate.

For many people, this means a jump in monthly payments unless you remortgage to a new deal.

Should I Fix My Rate Again?

Fixed rates give you certainty. You’ll know exactly what you’re paying each month for a set period, usually two, three or five years. In a volatile market, many clients like the security this brings.

Pros of fixing:

Predictable payments
Protection from future rate rises
Peace of mind for budgeting

Cons:

You may miss out if rates fall
Early repayment charges apply if you want to switch before the term ends

What About a Tracker Mortgage?

Tracker mortgages follow the Bank of England base rate, often with a small margin added. If the base rate falls, your payments go down. But if it rises, your payments will increase.

Pros of tracker deals:

Potential to pay less if rates fall
Often lower early exit fees than fixed deals
More flexible in changing markets

Cons:

Your payments are not fixed, so budgeting can be harder
Risk if the base rate rises

Trackers can work well if you believe rates will drop in the near future or if you want flexibility before committing to a longer-term fix.

Can I Switch Early Without a Penalty?

This depends on your current lender and mortgage deal. Most fixed rates have an early repayment charge (ERC) if you leave before the end of the term. However, some lenders allow you to secure a new rate up to six months in advance without penalty.

At Drummonds Finance Group, we’ll check your mortgage details, speak to your lender, and see if an early switch is possible. In many cases, we can help you lock in a new deal before your current one ends to avoid rolling onto the SVR.

Will Rates Drop Later This Year?

Nobody has a crystal ball, but many economists expect interest rates to fall gradually as inflation comes under control. The Bank of England has held the base rate steady in recent months, and market predictions suggest potential cuts later in the year or into next year.

This makes the decision tougher: fix now for security, or go tracker and wait for possible drops? It depends on your finances, risk tolerance and long-term plans.

What Should You Do Next?

The best next step is to speak with a mortgage adviser who understands the full market and your personal situation. We’ll help you:

Review your current mortgage deal
Check if early switching is possible
Compare fixed vs tracker options
Look at future plans, like moving or overpaying

Why Choose Drummonds Finance Group?

We’re a fully independent mortgage broker based in Oxford and serving clients across the UK. Whether your mortgage is with Halifax, Nationwide, BMS or a smaller lender, we’ll find the best next move for you, not just the most convenient.

We do not charge for initial advice, and we’ll explain everything clearly without pressure. From fixed to flexible, we’ve got your back.