With fixed mortgage rates remaining relatively high, more first-time buyers are looking beyond traditional fixed deals. New research from Moneyfacts suggests that 31% of first-time buyers compared tracker or variable rate mortgages in July, up from less than 10% earlier this year.

At first glance, it's easy to see why.

For someone borrowing £200,000 over 25 years, the average:

• 90% LTV two-year fixed rate could mean repayments of around £1,257 per month

• 90% LTV tracker rate could reduce this to around £1,146 per month

That's a saving of more than £100 each month – a significant amount when you're trying to get onto the property ladder.

The Catch

While tracker and variable mortgages can offer lower payments today, they aren't guaranteed to stay that way.

If the Bank of England increases the base rate, your monthly repayments could rise too. Financial markets are already expecting further rate increases, meaning today's attractive deal could become more expensive in the months ahead.

For some borrowers, that flexibility is worth the risk. For others, the certainty of a fixed payment provides valuable peace of mind.

There's No One-Size-Fits-All Mortgage

The cheapest rate isn't always the best mortgage.

The right choice depends on:

• Your income and budget

• How comfortable you are with changing monthly payments

• Your future plans

• How much financial flexibility you have if rates increase

A mortgage should fit your circumstances—not just offer the lowest headline payment.

Thinking About Buying Your First Home?

Before choosing a tracker simply because it's cheaper today, make sure you understand how future rate changes could affect your finances.

Speaking to an independent mortgage adviser can help you compare all of your options and find a mortgage that's right for you—not just right for today.

📞 If you're planning to buy your first home or your mortgage is due for review in the next six months, get in touch. We'll explain the pros and cons of every option and help you make an informed decision