We like discount and tracker loans

The margins between discount and current fixed rate deals is such that base rate would have to exceed 5% before the rates offered on current discount and tracker deals would become uncompetitive.

Borrowers concerned about future rate rises should not disregard these deals just because their rates, and therefore their monthly payments, are variable. They should calculate their monthly payments with rates 1% higher. If their mortgage is still affordable, they could take a flexible discount or tracker deal and make overpayments while rates are low.

This will put them in a stronger position if rates continue to rise in the future and would allow them to make underpayments.