UK mortgage rates in 2026 are shaped primarily by the Bank of England base rate, which stood at 4.25% in mid-2026 following a series of gradual reductions from the 5.25% peak reached in 2023. Lenders have passed much of this easing on to borrowers, with fixed rates falling notably from their 2023 highs.
Typical 2-year and 5-year fixed rates for a borrower with a 25% deposit (75% LTV) now sit in the 4.0–4.8% range, depending on lender and product features. Tracker mortgages typically price at base rate plus a margin of 0.5–1.5%, currently placing them at 4.75–5.75%.
Rates change frequently. The figures in this guide represent typical ranges as of mid-2026 based on publicly available market data. Individual lender rates move daily and vary significantly by deposit size, credit profile, property type and loan size. Always check current rates with lenders directly or via a whole-of-market broker before making any decision.
Several forces are shaping the 2026 mortgage market:
The single largest factor affecting your mortgage rate is your loan-to-value ratio — the size of your mortgage relative to the property's value. A larger deposit means a lower LTV and access to lower rates.
| LTV band | Deposit | Typical 2-yr fixed | Typical 5-yr fixed | Typical tracker |
|---|---|---|---|---|
| 60% LTV | 40% | 3.8–4.3% | 3.9–4.5% | 4.75–5.3% |
| 75% LTV | 25% | 4.0–4.7% | 4.1–4.8% | 4.75–5.5% |
| 80% LTV | 20% | 4.2–4.9% | 4.3–5.0% | 5.0–5.7% |
| 85% LTV | 15% | 4.4–5.1% | 4.5–5.2% | 5.1–5.8% |
| 90% LTV | 10% | 4.8–5.5% | 4.9–5.6% | 5.3–6.0% |
| 95% LTV | 5% | 5.2–6.0% | 5.3–6.1% | Less available |
Representative ranges as of mid-2026. Rates vary by lender, product fees, credit profile and borrower type. Source: publicly available lender rate cards.
Rate tiers aren't linear. The rate improvement from 90% to 75% LTV is typically larger than the improvement from 75% to 60% LTV. Moving from a 10% to a 25% deposit is usually the biggest rate step-down available to a typical buyer.
Choosing between fixed and tracker is fundamentally a question of certainty vs flexibility — and your view on where rates are heading.
Your interest rate is locked for the deal period — typically 2 or 5 years. Your monthly payment does not change, regardless of what the Bank of England does with its base rate.
Your rate moves with the Bank of England base rate. If the base rate falls, your payment falls automatically.
2-year fixed at 4.3%: £1,357/month — payment locked for 2 years
5-year fixed at 4.5%: £1,389/month — payment locked for 5 years
Tracker at base + 1.0% (5.25%): £1,495/month — moves with base rate
SVR (example lender, 7.5%): £1,845/month — avoid where possible
The table below shows monthly repayments for different loan sizes and rates on a 25-year repayment mortgage. Use this to gauge the payment impact of rate differences across your likely borrowing range.
| Loan size | 3.5% | 4.0% | 4.5% | 5.0% | 5.5% | 6.0% |
|---|---|---|---|---|---|---|
| £150,000 | £750 | £791 | £833 | £877 | £920 | £966 |
| £200,000 | £1,001 | £1,055 | £1,111 | £1,169 | £1,228 | £1,289 |
| £250,000 | £1,251 | £1,318 | £1,389 | £1,461 | £1,535 | £1,611 |
| £300,000 | £1,501 | £1,582 | £1,667 | £1,754 | £1,842 | £1,933 |
| £350,000 | £1,751 | £1,846 | £1,944 | £2,046 | £2,149 | £2,255 |
| £400,000 | £2,001 | £2,109 | £2,222 | £2,338 | £2,457 | £2,578 |
Capital repayment mortgage, 25-year term. Figures are indicative and rounded. Use the mortgage calculator for exact figures on your loan.
As a rule of thumb across typical UK loan sizes on a 25-year term:
This is why even a 0.5% rate difference matters — it is £55–£83/month on a typical UK loan, or £660–£996/year. Comparing lenders carefully, or using a broker who can access the whole market, is worth the effort.
Enter your loan size, rate and term to get a precise monthly repayment, total interest and full amortisation breakdown.
Open Mortgage CalculatorHow a rate change affects you depends on your mortgage type.
Changes to the Bank of England base rate have no direct effect on your monthly payment until your fixed deal ends. When it does, your new rate will reflect current market conditions — which could be higher or lower than your current rate.
If you are 3–6 months from the end of your fix, you can often lock in a new rate now without paying an ERC, protecting yourself against potential rate rises before your deal ends.
Each 0.25% change in the base rate translates directly to a proportional change in your payment. On a £250,000 mortgage, a 0.25% base rate cut saves approximately £35/month. A 0.25% rise adds the same amount.
SVR moves at the lender's discretion — it doesn't have to track the base rate exactly, though it typically follows directionally. SVRs are usually 2.5–4.0% above the base rate. At the current base rate of 4.25%, most SVRs sit at 7–8% — significantly higher than available fixed or tracker deals. If you are on SVR, remortgaging is almost certainly worthwhile.
Scenario: £250,000 mortgage, 20 years remaining
On SVR at 7.5%: approximately £2,007/month
Remortgage to 5-year fixed at 4.5%: approximately £1,581/month
Annual saving: approximately £5,112 — worth reviewing immediately if this applies to you
With rates having fallen from 2023 highs, many borrowers who fixed in 2021–22 at historically low rates (sub-2%) are now facing a significant payment increase when their fix ends. This "mortgage cliff" has been a recurring theme in 2025–26.
The optimal window is 3–6 months before your deal ends. Most lenders allow you to secure a rate in advance with a completion date that matches your current deal's expiry. This means:
A product transfer means switching to a new deal with your existing lender, without a full remortgage application. These are typically faster and involve less paperwork. A remortgage involves switching lender, which requires a full application, credit check and property valuation but gives access to the whole market.
Product transfers are best when: your existing lender's rates are competitive, you have had a recent change in circumstances (new job, reduced income), or you want a fast transaction. Remortgaging is best when: another lender offers significantly better rates, you want to borrow more (e.g. for home improvements), or you want to change the mortgage term.
When remortgaging to a new lender, you will face a fresh affordability assessment including the mortgage stress test. If your income or outgoings have changed since your original mortgage, this can affect what you qualify for. If you are doing a simple product transfer (no additional borrowing), your existing lender may apply a lighter-touch assessment.
Check your mortgage affordability before you remortgage. Use the mortgage affordability calculator to see what a new lender would likely offer given your current income, outgoings and the new loan amount.
Disclaimer: The mortgage rates and repayment figures in this guide are for informational purposes only and represent typical market ranges as of mid-2026. Rates vary by lender, deposit size, credit profile, property type, loan size and individual circumstances. This guide does not constitute financial advice. Always obtain personalised quotes from lenders or a regulated mortgage broker before making any borrowing decision. UKCalc is not authorised or regulated by the Financial Conduct Authority.