Choosing the right mortgage type is one of the most important financial decisions you’ll make when buying a home.

Whether you’re a first-time buyer or looking to remortgage, understanding the difference between fixed and variable mortgages can save you thousands of pounds—and plenty of stress—over the life of your loan.

At Your Mortgage Shop, we believe it’s essential to find a mortgage that not only suits your current situation but also protects you against future changes.

Let’s take a closer look at the pros and cons of fixed and variable mortgages to help you make an informed choice.

What is a Fixed-Rate Mortgage?

A fixed-rate mortgage means your interest rate stays the same for a set period, usually two, five, or even ten years. Your monthly payments won’t change, giving you security and peace of mind.

Pros of a Fixed-Rate Mortgage:

  • Stability: Your monthly payments remain consistent, making it easier to budget.

  • Protection: You’re shielded from interest rate rises during your fixed term.

  • Peace of mind: No surprises if the Bank of England base rate increases.

Cons of a Fixed-Rate Mortgage:

  • Higher initial rates: Fixed deals often start slightly higher than the lowest variable rates.

  • Early repayment charges: If you want to move or pay off your mortgage early, you could face hefty penalties.

  • Limited flexibility: You’re locked into the deal for the fixed period.

What is a Variable-Rate Mortgage?

A variable-rate mortgage means your interest rate can move up or down. It could be linked to the Bank of England’s base rate (tracker mortgages) or set by your lender (standard variable rate, or SVR).

Pros of a Variable-Rate Mortgage:

  • Lower starting rates: Initially, variable rates are often cheaper than fixed ones.

  • Potential savings: If interest rates fall, so will your mortgage payments.

  • More flexibility: Tracker mortgages often have lower or no early repayment charges.

Cons of a Variable-Rate Mortgage:

  • Unpredictable payments: Your monthly amount can increase without much notice.

  • Less security: Budgeting becomes harder if your payments fluctuate.

  • Higher long-term costs: If rates rise sharply, your mortgage could become much more expensive.

Which Mortgage Type is Right for You?

Choosing the right mortgage type depends on your personal circumstances:

  • Need stability? A fixed-rate mortgage could give you the certainty you want, especially if you’re on a tight budget or expect rates to rise.

  • Feeling flexible? If you’re confident that you can handle changes—or if rates are expected to stay low—a variable mortgage could save you money.

It also depends on how long you plan to stay in your home, your appetite for risk, and your future financial plans.

How Your Mortgage Shop Can Help

At Your Mortgage Shop, we understand that every buyer’s situation is unique. Our friendly, expert advisors take the time to understand your needs and search the market to find the best mortgage deal for you. Whether you’re leaning towards a fixed or a variable mortgage, we’ll help you weigh the options and secure the right choice for your future.

Don’t leave such an important decision to chance—contact Your Mortgage Shop today for expert, personalised advice.

Share this story

More news

Renting vs Buying: Why Homeownership Could Boost Your Wealth by £338,000

Looking For A Mortgage Deal In Summer 2025?: Here’s What You Need to Know

how to find the best mortgage deals for summer 2025 — whether you’re a first-time buyer, remortgaging or moving.

Yes, You Can Get a Mortgage When You’re Self-Employed — Here’s How

Self-employed? Don’t let outdated myths keep you from homeownership. Whether you’re a freelancer, influencer, or small business owner

Understanding Mortgage Overpayments: A Smart Way to Save

Making mortgage overpayments could save you thousands — but is it the right move? Here’s what to know before paying extra on your loan

Thinking of Relocating? What to Consider When Moving to a New Area

Relocating? Here’s what to consider before moving to a new area — from neighbourhood checks to mortgage support, we’ve got you covered
first time buyers

5 Things First-Time Buyers Often Forget – And How to Avoid Them

Buying your first home can be exciting – but it’s also easy to overlook crucial details. Here are five common mistakes
remortgage

Is Now the Right Time to Remortgage? A 2025 Guide for UK Homeowners

With interest rates fluctuating, many UK homeowners are questioning if 2025 is the ideal time to remortgage. This guide provides clarity
remortgaging

Remortgaging Your Home in 2025: What You Need to Know

Remortgaging your home in 2025 could save you hundreds — or even thousands — a year. Learn when it’s smart to switch
fixed vs variable mortgages

Fixed or Variable: Choosing the Right Mortgage Type

Confused about whether a fixed or variable mortgage is right for you? We break down the pros and cons of each
low deposit home purchases

Buying a Home with a Low Deposit – What Are Your Options?

Think you need a huge deposit to buy your first home? Think again! From 95% mortgages to shared ownership and even 100% options
mortgage approval process

Mortgage Pre-Approval vs. Full Approval – What’s the Difference?

Not sure about the difference between mortgage pre-approval and full approval? Find out how each stage impacts your home-buying journey
mortgages in nottingham

The Most Common Mortgage Mistakes – And How to Avoid Them

Avoid common mortgage mistakes that could cost you time and money! From credit scores to choosing the right mortgage, here’s what to watch
Mortgage Quote Calculator​

Mortgage Quote Calculator

Result
(monthly payment)

£00.00

close

Mortgage applications are subject to status. The rates detailed are for illustrative purposes only and may not be applicable for your circumstances. Our advisors will be able to discuss the full range of products on offer that suit your criteria.

Mortgage applications are subject to status. The rates detailed are for illustrative purposes only and may not be applicable for your circumstances. Our advisors will be able to discuss the full range of products on offer that suit your criteria.
Affordability Calculator​

Affordability Calculator

Result
£00.00
close
Affordability

This illustration is not a quotation under the Consumer Credit Act. Any figures quoted are subject to validation of income, credit checks and a property valuation. View our latest mortgage rates on our home page to find a selection of mortgage products. Alternatively, let one of our mortgage experts handle it for you. They’ll find the right mortgage for you and manage the process from start to finish.