Experts explore pros and cons for variable, fixed and tracker mortgage

However, he noted: “One of the biggest risks of tracker mortgages is that the interest rate can increase over time. This means your monthly mortgage payment will increase, potentially making it more difficult to afford.”

Mr Goody also added that tracker mortgages may be less widely available than other mortgage types, and may require a larger deposit or higher credit score.

Current market forecast

Express.co.uk also asked the analysts to compare the different mortgage types against today’s backdrop of fluctuations and uncertainty.

Ms Whitling said: “Our current outlook, and that of most of our industry colleagues, is that Base Rates are likely to remain reasonably stable. The sentiment is that rates are liable to rise slightly, but the highest expected point is likely to be 4.5 percent rather than the six percent predicted after the mini-budget.”

She continued: “While this is likely to mean further interest rate rises, lenders seem more confident, and we have started to see mortgage rates reduce slightly. Fixed rates are still more attractive to most borrowers because they offer security during what’s still a fairly uncertain period.”

Ms Whitling said the market is seeing an increase in take-up of two and three-year fixed rates, whereas when rates began to rise, borrowers were taking longer fixed rates of five, seven and ten years.

But in terms of monthly repayments, Ms Whitling said: “In today’s market the difference is minimal between variable, trackers and fixed rates, so unless you’re borrowing a substantial amount, the difference is negligible at the moment.”

Tim Leonard, personal finance expert at NerdWallet, weighed in: “At the minute, interest rates on fixed rate mortgages are higher than we’ve generally been used to since the 2008 financial crisis, but have also been falling steadily in recent months. Meanwhile, the ten consecutive rises in the Bank of England Base Rate mean the rates on variable mortgages have been regularly increasing over the past year too.

“If you think the Bank of England is unlikely to raise the Base Rate much further – a policy it’s pursued to try to bring inflation under control – or even think rate reductions might be coming in the not-too-distant future, you could potentially consider a variable rate mortgage.”