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Sam covers personal finance topics, from the best savings rates to the reasons mortgage lenders say no. He enjoys crunching the numbers to help consumers get ahead.
The mortgage market has changed a lot since the start of the year, due to the war in the Middle East. Mortgage rates are up, tracker mortgages now offer the cheapest deals and base rate expectations have shifted.
So, should borrowers be considering different types of mortgages now compared to a few months ago?
Here, we talk to experts and look at the costs of different types of deals to help you weigh up the types of mortgage products worth considering this year.
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The first choice for most borrowers is between a tracker or fixed-rate mortgage.
With a fixed rate, you have certainty on the monthly costs for the term. With a tracker, there's potential for your rate to rise or fall depending on what's going on with the Bank of England base rate.
A borrower with a tracker mortgage taken out in January 2025 will have seen their mortgage rate drop by a full percentage point, following four cuts to the base rate – saving around £440 annually, according to analysis by UK Finance.
Those with tracker mortgages shouldn't expect the same in 2026. Barclays says it expects the base rate to remain at 3.75% for the rest of the year.
However, tracker mortgages do currently offer the lowest rates – 88 out of 100 best rates are offered on this type of deal. A stable base rate, combined with market-leading rates, may make a tracker mortgage a good product to consider.
Borrowers should weigh up their appetite for risk before choosing a tracker, because there is a significant risk that continued conflict in the Middle East could lead to a higher base rate, which would increase monthly repayments.
That said, those who value flexibility might lean towards picking a tracker mortgage. Tracker mortgages typically don't include early repayment charges (ERCs), which apply if you overpay above a certain amount or switch mortgages before the term of the deal. So, if you're thinking of moving in the next few years, a deal with no ERCs could save you a significant amount of money.
There is still much more choice if you decide to fix, but the number of deals has fallen.
As of 14 April, we found 6,097 fixed-rate deals on the market, a 10% decline compared to mid-January. In contrast, there are 465 tracker mortgages available, up 24% since the start of the year.
Fixed rates were falling at the beginning of 2026, and for much of last year, but have risen significantly over the past month.
Which? analysis of Moneyfacts data found that for first-time buyers, home movers and remortgagers, the best rates have increased by roughly a percentage point since the start of the year.
The most popular fixed-rate products are typically for two or five years.
The three key considerations for borrowers are the cost, your attitude to risk and your future plans.
Rate increases have resulted in five-year fixed rates becoming the cheapest type of mortgage for most borrowers. Previously, fixed rates for two years typically had the best deals.
A five-year fix gives greater certainty, but a shorter mortgage term gives you the flexibility to switch to a new deal sooner, potentially at a lower rate. Of course, there’s always the risk that rates won’t fall, or could even rise.
Recently, borrowers have increasingly opted for three-year terms, perhaps because they offer a little extra security.
When choosing the term length, it's also important to consider your future plans. If you think you'll move home sooner, a shorter-term deal could be more suitable, as you'll likely face early repayment charges if you move home during your fixed term.
Nicholas Mendes, of mortgage broker John Charcol, told Which?: 'For remortgagers, the decision is often being driven by how much of a payment jump they are facing. Some are leaning towards two-year fixes in the hope that rates ease further and they can refinance again sooner, but plenty are choosing five-year fixes because after coming off a very low deal, certainty now feels more valuable than trying to second-guess the market.'
David Hollingworth, of mortgage broker London and Country, told Which?: 'We have seen more borrowers considering tracker rates since the conflict saw fixed rates increase. The markets are anticipating that the base rate will need to increase due to the higher cost of oil, which will feed through to energy and other living costs. That is why fixed rates have already had to rise, but if the situation eases, it could avoid the need for significant hikes, which could make a tracker a cheaper choice.
'There’s no knowing how things may pan out, but those who have the ability to deal with increases in payments if rates climb may be happier to take a wait-and-see position on a tracker deal. This might suit a remortgage borrower that has a more comfortable level of affordability in terms of disposable income.'
The mortgage product you choose can significantly affect your monthly mortgage costs.
We worked out the estimated monthly costs of the cheapest two-year tracker, as well as the cheapest two-year, three-year, five-year and 10-year fixed rates, at three different loan-to-value (LTV) levels, for a £250,000 mortgage over 25 years.
| Two-year tracker monthly payment | Two-year fixed-rate monthly payment | Three-year fixed-rate monthly payment | Five-year fixed-rate monthly payment | 10-year fixed-rate monthly payment | |
|---|---|---|---|---|---|
| 60% | £1,314.08 | £1,425.29 | £1,429.61 | £1,423.86 | £1,471.69 |
| 75% | £1,330.66 | £1,435.38 | £1,442.60 | £1,431.05 | £1,483.41 |
| 90% | £1,399.53 | £1,479.01 | £1,490.75 | £1,467.31 | £1,541.20 |
Source: Which? analysis of the cheapest rates sourced from Moneyfacts data on 14 April.
Tracker mortgages were the cheapest option across all three LTVs, costing £75 to £120 a month less than the best fixed-rate option.
For all three scenarios, five-year fixed rates were the second-cheapest mortgage type. For lower LTV ratios, the difference in monthly repayments between two-year and five-year fixes was just a few pounds.
The best three-year mortgages now typically cost more than two-year and five-year fixes.
Our research shows that across the three LTV ratios we analysed, long-term security comes with a cost. The 10-year fix was the most expensive across all three LTV ratios. At 60% LTV, the best 10-year fixed rate costs more than £150 extra per month than the cheapest two-year tracker.
If your home has an EPC rating of A or B, it may be worth considering a green mortgage, as some lenders will offer energy-efficient homes a lower interest rate. Similarly, if you would like to make green home improvements, many providers will offer 0% loans or cashback to mortgage customers.
For example, Nationwide, the only Which? Recommended mortgage lender from our latest survey, offers eligible existing customers a 0% interest Green Additional Borrowing mortgage. The scheme allows you to borrow between £5,000 and £20,000 to fund improvements, such as installing solar panels, adding cavity wall insulation, or installing double glazing. Be aware that the 0% interest applies only to the length of your fixed-term mortgage.
