Mortgage Interest Rates UK: Latest Trends, Types & How to Get the Best Deal

Mortgage interest rates in the UK have been changing quickly in 2026.

The average two-year fixed mortgage rate currently stands at around 5.51%, while five-year fixed rates sit at roughly 5.52%, both near their highest levels in over a year.

The Bank of England base rate is at 3.75%.

Lenders set their own rates based on several other factors too.

Understanding how these rates work can help borrowers make better decisions.

This article covers the different types of mortgage rates available, what affects them, and how borrowers in different situations can find the best deal for their needs.

What Are the Current UK Mortgage Interest Rates in 2026?

UK mortgage rates have fallen noticeably compared to 2025.

Average two-year and five-year fixed rates sit around 4.3%, and the lowest deals drop below 4% for borrowers with large deposits.

Average Mortgage Rates in April 2026

The average UK mortgage rate in April 2026 is 4.27% for a two-year fixed deal and 4.38% for a five-year fixed deal.

These figures are based on products with an average lender fee of £995.

Rates have come down significantly over the past year.

Both the two-year and five-year fixed averages are roughly 0.4–0.7% lower than they were 12 months ago.

The Bank of England base rate currently stands at 3.75% after four cuts made during 2025.

This has helped push mortgage deals lower across the board.

Lowest and Best Available Rates

The lowest mortgage rates in April 2026 are available to borrowers with a deposit or equity of at least 40% (60% LTV).

Deal Type	Lowest Rate	Fixed Until
2-year fixed	3.75%	31 Dec 2027
5-year fixed	3.90%	30 Nov 2030

Both deals revert to a higher variable rate after the fixed period ends — 5.99% for the two-year and 6.49% for the five-year.

Borrowers should factor in these revert rates when comparing the true cost of each deal.

The absolute lowest rates available across the market are 3.47% for a two-year fix and 3.69% for a five-year fix.

These are the best-case figures and not widely available.

Typical Rates by Loan-to-Value (LTV)

The amount a borrower puts down as a deposit has a big effect on the rate they can access.

The table below shows average rates by LTV in April 2026.

LTV	2-Year Fixed	5-Year Fixed
60%	3.73%	3.93%
75%	4.06%	4.17%
85%	4.18%	4.31%
90%	4.43%	4.49%
95%	4.98%	5.00%

Borrowers with only a 5% deposit face rates close to 5%.

Those with a 40% deposit or more can access rates well below 4%.

Recent Changes in the Market

The Bank of England cut the base rate four times in 2025, finishing the year at 3.75%.

This pushed average mortgage rates down by around 0.4–0.9% year-on-year, depending on the deal type.

Fixed-rate mortgage deals have stayed under 4% at the lower end of the market through early 2026.

Weekly rate movements have been small, typically changing by just 0.01–0.04% in either direction.

Some lenders have edged rates slightly higher in recent weeks, but experts suggest this is likely to be short-term.

Further base rate cuts are possible in 2026, which could put additional downward pressure on mortgage interest rates.

What Factors Affect UK Mortgage Interest Rates?

Several things influence the mortgage rate a lender will offer, from national economic decisions to a borrower’s personal finances.

Understanding these factors can help borrowers make more informed choices.

Bank of England Base Rate

The Bank of England base rate is one of the most direct influences on mortgage rates in the UK.

When the Bank of England raises or lowers this rate, mortgage lenders typically adjust their own rates in response.

As of April 2026, the base rate sits at 3.75% after a cut in December 2025.

This is the lowest it has been since 2023.

Variable rate and tracker mortgages move closely with the base rate.

Fixed rate mortgages are less directly tied to it, but base rate changes still shape the broader pricing environment lenders operate in.

Swap Rates & Market Volatility

Swap rates are a key driver of fixed rate mortgage pricing.

They reflect what financial markets expect interest rates to be over a set period, such as two or five years.

Mortgage lenders use swap rates to lock in the cost of the money they lend out.

If swap rates rise, the cost of offering a fixed rate deal goes up, and lenders pass that cost on to borrowers.

Market volatility, caused by events like geopolitical tensions or sudden economic shifts, can push swap rates up quickly.

This is why fixed mortgage rates sometimes change even when the Bank of England base rate stays the same.

Loan-to-Value (LTV) Ratios

Loan-to-value (LTV) is the percentage of a property’s value that a borrower is taking out as a mortgage.

A borrower putting down a 10% deposit has a 90% LTV, while a 25% deposit gives a 75% LTV.

Lenders see higher LTV mortgages as riskier and charge higher interest rates on them.

LTV	Typical Risk Level	Rate Impact
60% or below	Low	Lower rates available
75–85%	Medium	Mid-range rates
90–95%	High	Higher rates charged

Borrowers who can save a larger deposit will usually access better rates.

Even moving from a 90% LTV to an 85% LTV can make a noticeable difference.

Inflation and Economic Outlook

Inflation affects mortgage rates because the Bank of England uses the base rate as a tool to control it.

When inflation is high, the Bank of England raises rates to slow spending, which pushes mortgage rates up.

When inflation falls toward the Bank of England’s 2% target, rate cuts become more likely.

This tends to bring mortgage rates down over time.

Lenders also look at broader economic conditions like wage growth and unemployment levels.

A strong economy with rising wages may lead to more caution from the Bank of England, keeping rates higher for longer.

Types of Mortgage Interest Rates in the UK

In the UK, mortgage interest rates fall into a few main categories.

The type a borrower chooses will affect how much they pay each month and how their rate changes over time.

Fixed Rate Mortgages

A fixed-rate mortgage locks in the interest rate for a set period.

This means monthly payments stay the same, no matter what happens to wider interest rates.

Common fixed mortgage rates terms:

• 2-year fixed
• 3-year fixed
• 5-year fixed
• 10-year fixed

A five-year fixed rate is one of the most popular choices in the UK.

It gives borrowers five years of payment certainty, which makes budgeting straightforward.

When the fixed term ends, the borrower usually moves onto the lender’s standard variable rate unless they remortgage.

Leaving a fixed deal early usually means paying an Early Repayment Charge (ERC), which can be 1–5% of the remaining loan.

Variable Rate Mortgages

A variable rate mortgage has an interest rate that can go up or down over time.

This is usually linked to the Bank of England base rate or the lender’s own standard variable rate (SVR).

The SVR is the default rate a lender charges when a deal period ends.

It tends to be higher than other mortgage rates.

Some lenders set their SVR up to 5% above the Bank of England base rate.

Key things to know about SVR mortgages:

• Borrowers can usually leave without paying an ERC
• Rates can change at any time
• They are rarely the cheapest option

Tracker Mortgages

A tracker mortgage is a type of variable rate mortgage.

The interest rate directly follows a set benchmark, usually the Bank of England base rate.

If the base rate drops by 0.25%, the tracker mortgage rate drops by 0.25% too.

The same works in reverse if rates rise.

Tracker mortgages typically last 2–5 years, though lifetime tracker deals exist.

They usually have no tie-in period, so borrowers can switch without paying a penalty.

This makes them more flexible than fixed deals.

However, payments can rise quickly if the base rate increases.

Discounted and Offset Mortgages

A discounted variable rate mortgage offers a rate set below the lender’s SVR for a fixed period, usually 2–3 years.

For example, if the SVR is 7% and the discount is 1.5%, the borrower pays 5.5%.

When the deal ends, the rate reverts to the full SVR.

Offset mortgages work differently.

A borrower’s savings are linked to their mortgage, and they only pay interest on the difference.

For example, a £250,000 mortgage offset against £25,000 in savings means interest is only charged on £225,000.

Benefits of offset mortgages include:

• Tax-free interest savings
• Flexible access to savings
• Potential to pay off the mortgage faster

Offset mortgage rates can sometimes be slightly higher than other types.

How to Compare Mortgage Deals

When comparing mortgage deals, borrowers need to look beyond the headline interest rate.

Fees, the APRC, and the type of rate all affect the true cost of a mortgage.

Initial Interest Rate vs. APRC

The initial interest rate is the rate a borrower pays during the deal period, which is usually two or five years.

It looks attractive on the surface, but it does not show the full picture.

The Annual Percentage Rate of Charge (APRC) gives a more complete view.

It takes into account the interest rate, fees, and the total cost over the full mortgage term.

This makes it a better tool for comparing mortgage deals side by side.

For example, a deal with a low initial rate but high fees could end up costing more than a deal with a slightly higher rate and no fees.

Always check the APRC when doing a mortgage comparison.

Fees: Arrangement, Valuation, and Legal

Mortgage fees can add hundreds or even thousands of pounds to the overall cost.

The most common fees are:

• Arrangement fee – the lender charges this to set up the mortgage, often £999–£1,999.
• Valuation fee – this covers the lender’s assessment of the property’s value, typically £150–£1,500 depending on the property.
• Legal fees – paid to a solicitor or conveyancer to handle the legal work.

Some lenders offer fee-free deals, but these often come with a higher interest rate.

Borrowers should add all mortgage fees to the total cost before choosing a deal.

Comparing Fixed vs. Variable Offers

A fixed-rate mortgage locks in the interest rate for a set period, usually two or five years.

Monthly payments stay the same, making budgeting easier.

A variable-rate mortgage can change.

The rate may go up or down depending on the lender or the Bank of England base rate.

Type	Rate stability	Best for
Fixed	Stays the same	Those who want predictable payments
Tracker	Follows base rate	Those comfortable with some risk
Standard Variable (SVR)	Set by lender	Usually avoided long-term

Borrowers should consider how long they plan to stay in the deal and their comfort with risk when comparing mortgage rates.

How Can You Find the Best Mortgage Rates in the UK?

Getting a good mortgage rate depends on several key factors.

Your deposit size, credit history, how you search for deals, and timing all matter.

Deposit Size and LTV Strategy

A bigger deposit lowers your loan-to-value (LTV) ratio and unlocks better rates.

With a 40% deposit, you will almost always get a cheaper rate than someone with a 10% deposit.

Lenders price their deals in LTV bands, such as 60%, 75%, 85%, and 90%.

Even moving from 85% to 75% LTV can unlock lower rates.

Using a loan-to-value calculator helps you see which band you fall into.

First-time buyers who can save a larger deposit, even by a small amount, should check if it pushes them into a better band before applying.

Credit Score and Eligibility

Lenders use credit scores to decide whether to lend and at what rate.

A higher credit score usually means access to better deals.

You should check your credit report with agencies like Experian, Equifax, or TransUnion before applying.

Missed payments, high credit card balances, and not being on the electoral roll can hurt your score.

Some specialist lenders offer mortgages for people with bad credit, but rates will be higher.

Getting a mortgage in principle early helps you understand what you are likely to be offered.

Using Mortgage Brokers

A mortgage broker searches the market across many lenders, including deals not available directly to the public.

This is an effective way to find a competitive rate.

Fee-free mortgage brokers do not charge you directly—they are paid by the lender.

This can be cost-effective, especially when rates are changing quickly, as they are in April 2026.

Brokers can also give mortgage advice on which deal suits your situation, not just which has the lowest rate.

Arrangement fees, early repayment charges, and deal length all affect the true cost of a mortgage.

Timing and Advanced Remortgaging

Timing matters when securing a good rate.

If you are remortgaging, you can lock in a new rate up to six months before your current deal ends.

This helps you avoid rolling onto a lender’s Standard Variable Rate (SVR), which currently averages 7.15% in the UK.

Locking in a rate early does not mean missing out on better deals.

Many brokers offer a rate review service so you can move to a lower deal if rates fall before your switch date.

What Mortgage Interest Rates Are Available for Different Borrowers?

The rates you can get depend on your situation—whether you are a first-time buyer, moving home, or remortgaging.

The UK base rate is 3.75%, and average fixed rates range from about 3.96% to 5.83% depending on the deal type and loan size.

First-Time Buyer Mortgages

First-time buyer mortgages are priced based on how much you borrow compared to the property value.

This is called the loan-to-value (LTV) ratio.

A 5% deposit means a 95% LTV, which lenders see as higher risk.

Lenders charge higher rates at this level.

A 20% deposit (80% LTV) unlocks cheaper deals.

LTV	Risk Level	Expected Rate Range
95%	Higher	5%+
90%	Medium-High	4.5%–5%+
80%	Medium	4%–4.5%

Fixed-rate deals are the most popular choice for first-time buyers.

You can fix for two, three, or five years.

A five-year fix offers more payment stability, while a two-year fix may suit those who expect rates to fall.

Remortgage and Home Mover Rates

When you remortgage, you switch your existing mortgage to a new deal—either with the same lender or a different one.

Remortgage rates are often lower than first-time buyer rates because you usually have more equity in your home.

Home movers with an LTV of 60% or lower can access some of the most competitive rates.

Rates from around 3.96% are available to those in this bracket as of April 2026.

A remortgage calculator helps you work out if switching deals will save you money after fees.

Early repayment charges on your current deal can sometimes cancel out the savings.

Lenders have raised fixed remortgage rates since early March 2026 due to uncertainty linked to conflict in the Middle East.

Locking in a deal sooner is the current advice for those looking at remortgage deals.

Specialist and Buy-to-Let Options

Buy-to-let mortgages are for people who rent out a property.

For landlords considering short-term letting, see our guide to holiday let mortgages and how they differ from standard buy-to-let products.

These usually have higher interest rates than standard residential mortgages.

Lenders assess buy-to-let applications based on the rental income the property is expected to generate, not just your personal income.

Most lenders require rental income to cover at least 125% of the monthly mortgage payment.

Landlords looking for income stability may also consider guaranteed rent, which provides fixed monthly payments regardless of occupancy.

Shared ownership mortgages are another specialist option.

They let buyers purchase a share of a home—usually between 25% and 75%—and pay rent on the rest.

Rates on these deals are similar to standard residential mortgages.

Interest-only mortgages are mainly for buy-to-let landlords and high-equity borrowers.

Monthly payments are lower because you only pay the interest each month, not the loan itself.

How Can You Manage Your Mortgage Repayments Effectively?

Managing mortgage repayments well can save thousands of pounds over time and reduce financial stress.

Using calculators, making overpayments, and understanding the full cost of a mortgage term help you stay in control.

Monthly Payments and Repayment Calculators

A mortgage repayment calculator helps you work out how much you will pay each month based on the loan amount, interest rate, and mortgage term.

This makes it easier to budget and compare deals.

Most lenders and comparison sites offer free mortgage calculators online.

Tools like the one on MoneyHelper let you test different interest rates—for example, entering a rate 1–2% higher to see if payments would still be affordable.

Monthly mortgage payments depend on:

• The interest rate (fixed or variable)
• The length of the mortgage term
• Whether the mortgage is repayment or interest-only

Switching to interest-only payments temporarily lowers the monthly amount, but you still need to repay the full loan balance later.

Overpayments and Early Repayment Charges

Making overpayments—paying more than the required monthly amount—reduces the total interest paid and shortens the mortgage term.

Even small regular overpayments can make a noticeable difference over time.

However, you need to watch out for early repayment charges (ERCs).

Lenders charge these fees if you repay too much too soon or exit a fixed-rate deal before it ends.

ERCs are usually calculated as a percentage of the outstanding loan.

For example:

Year of Fixed Term	Typical ERC
Year 1	5%
Year 2	4%
Year 3	3%
Year 4	2%
Year 5	1%

Most lenders allow overpayments of up to 10% of the outstanding balance per year without triggering an ERC.

You should check your mortgage terms before making large overpayments.

Total Cost Over the Mortgage Term

The mortgage term—usually 25 years in the UK—has a big impact on the total amount repaid.

A longer term means lower monthly payments but more interest paid overall.

For example, a £200,000 mortgage at 4.5% interest repaid over:

• 25 years — monthly payment of around £1,111, total repaid approximately £333,300
• 35 years — monthly payment of around £949, total repaid approximately £398,580

Extending the term reduces short-term pressure but increases the long-term cost.

Some lenders let you shorten your term later as your finances improve, which can reduce the total interest paid.

Conclusion

Global events and domestic economic pressures are shaping UK mortgage rates. The ongoing conflict in the Middle East has pushed up swap rates, leading to higher fixed-rate deals across the market.

Average rates now hover around 5.5%. Earlier in the year, they were under 4%.

Borrowers facing remortgage decisions in 2026 need to consider several factors:

• The Bank of England base rate is currently at 3.75%. Cuts may be delayed.
• Two-year fixed rates are forecast to sit around 4.7% by September 2026.
• Five-year fixed rates are expected to follow a similar path.
• Locking in a rate now may protect against further rises.

If the conflict stabilises, rate cuts later in 2026 are possible. High energy prices could keep inflation and rates elevated for longer.

Our outlook remains uncertain. Timing our decisions carefully is important.

Those of us looking to buy property or remortgage in the UK benefit from expert advice. At JF Property Partners, we help buyers and investors navigate the current market with confidence.

Reach out by visiting jfpropertypartners.com, using our contact page, emailing info@jfpropertypartners.com, or calling +44 7457 427143.

Frequently Asked Questions

In April 2026, UK mortgage rates average about 5.41% for both two and five-year fixed deals. The rate a borrower gets depends on deposit size, credit history, and loan-to-value ratio.

What are the current mortgage rates for first-time buyers in the UK?

As of 7 April 2026, first-time buyers with a 10% deposit (90% LTV) see average rates of 5.54% on a two-year fixed deal and 5.48% on a five-year fixed deal. With a 15% deposit (85% LTV), average rates are 5.30% for a two-year fix and 5.34% for a five-year fix.

The lowest rates for first-time buyers are more competitive. With a 90% LTV, the lowest two-year fixed rate is 5.12% and the lowest five-year fixed rate is 4.96%.

At 85% LTV, those figures drop to 4.89% and 4.85% respectively. First-time buyer homes (typically two-bed properties or smaller) have an average asking price of about £226,955 outside London.

On an 80% LTV mortgage at a 4.78% rate over 25 years, monthly payments are roughly £1,038.

How do two-year fixed-rate deals compare with five-year fixed-rate deals at the moment?

Right now, two-year and five-year fixed rates are very close. The average two-year and five-year fixed rate is 5.41% as of 7 April 2026.

The lowest two-year fixed rate is 4.71%, compared to 4.77% for the lowest five-year fixed rate. Two-year deals have a slight edge at the bottom of the market, but the difference is small.

A two-year fix gives more flexibility to switch sooner if rates fall. A five-year fix offers more certainty over monthly payments for longer.

The right choice depends on how much stability a borrower wants and their expectations for future rates.

How can I calculate monthly repayments for a £300,000 mortgage based on my deposit and term?

Monthly repayments depend on the loan amount, interest rate, and mortgage term. A larger deposit lowers the loan-to-value and usually means a lower interest rate.

For example, using a rate of 4.96% (the lowest five-year fixed rate at 90% LTV) on a £270,000 loan (90% of £300,000) over 25 years, monthly repayments would be about £1,570. With a 40% deposit and a lower rate near 5.02%, the loan would be £180,000 and repayments would be lower.

An online mortgage calculator gives the most accurate figure. Enter the deposit amount, loan size, interest rate, and term to get a monthly repayment estimate.

What factors most influence the rate a lender will offer me, such as loan-to-value and credit history?

Loan-to-value (LTV) is a major factor. A larger deposit lowers your LTV and usually gets you a better rate.

At 60% LTV, borrowers can access average rates around 4.96% on a two-year fix. At 95% LTV, rates are about 6.07%.

Credit history also plays a big role. Lenders use it to assess risk.

A clean credit record with no missed payments or defaults leads to better rates. Some specialist lenders offer mortgages to those with poor credit, but at higher rates.

Income, employment type, and the size of the loan compared to earnings also affect the rate. Self-employed borrowers or those with irregular income may face more checks during affordability assessments.

Is a rate around 4.2% considered competitive for a residential mortgage right now?

Yes, a rate of 4.2% is competitive in April 2026. The lowest rates currently available start at 4.71% for a two-year fix and 4.77% for a five-year fix, based on products with a £999 fee.

A rate of 4.2% sits below the lowest widely advertised deals. Check if such a rate comes with high arrangement fees, as these can increase the overall mortgage cost.

Anyone offered a rate around 4.2% should compare the total cost over the fixed term, not just the headline rate. Factoring in fees gives a clearer picture of value.

How have typical UK mortgage rates changed over the past 10 years, and what trends matter most?

UK mortgage rates stayed historically low throughout much of the 2010s. Two and five-year fixed rates often dropped below 2% for borrowers with strong deposits. The Bank of England kept the base rate near zero during this period.

Rates began rising sharply in 2022 as the Bank of England increased the base rate to tackle inflation. By late 2023, average fixed rates climbed above 6% in some cases.

Since then, rates have fallen from those highs but remain well above pre-2022 levels. As of April 2026, the base rate is 3.75%.

Average two and five-year fixed rates are around 5.41%. Compared to a year ago, rates are slightly higher, rising by about 0.54% to 0.67% depending on the product.

The downward trend in rates has slowed. The most important trends to watch are Bank of England base rate decisions and swap rates.

These factors directly influence what lenders charge. Global events, such as geopolitical instability, can push swap rates up even when the base rate stays the same.