Average Mortgage Rates UK 2026: What the Data Shows

How Average Mortgage Rates Are Calculated

Average mortgage rates published by data providers such as Moneyfacts are calculated by surveying products available across the UK mortgage market at a given point in time. Moneyfacts covers over 90% of the mortgage market in its calculations. The averages include products with typical arrangement fees of around £999 and span multiple LTV bands and lender types including banks, building societies, and specialist lenders.

These averages are useful benchmarks for understanding where the broad market sits, but they do not represent the rate any individual borrower will receive. The rate offered to a specific borrower depends on their LTV, credit profile, income, and the lender's own criteria at the time of application. Borrowers with a larger deposit or higher equity access lower rates than the all-LTV average, sometimes by a significant margin.

It is worth noting that average rates fluctuate daily as lenders reprice their products in response to movements in swap rates, competitive pressures, and their own funding costs. A snapshot average from one day may differ from the average a week later even if the Bank of England base rate has not changed.

UK Average Mortgage Rates: June 2026

Source: Moneyfacts (June 2026), Rightmove (June 2026). All figures subject to change. Rates are averages and do not represent individual offers.

The Context: Coming Off 2021 Deals in 2026

FCA data shows approximately 1 million 5-year fixed-rate mortgages taken out in 2021 will reach the end of their fixed term during 2026. In June 2021, the average 5-year fixed rate was 2.59%. At the current average of 5.63%, a borrower on a £200,000 repayment mortgage over 30 years faces substantially higher monthly payments when their deal expires.

UK Finance estimates a total of around 1.8 million fixed-rate mortgages will mature during 2026. Many of these borrowers will be remortgaging into rates that are lower than 2023 peak levels but still substantially higher than their original deals. The Bank of England base rate peaked at 5.25% in mid-2023 and was cut progressively to 3.75% by December 2025 through a series of reductions, but fixed-rate mortgages remain elevated relative to the pre-2022 era.

Why Average Rates Differ by LTV

Lenders price mortgages on a tiered basis by LTV because the LTV determines the lender's risk exposure. At 60% LTV, even a significant fall in the property's value would leave the outstanding loan well covered by the asset value. At 90% LTV, a much smaller fall in property prices could put the loan into negative equity, where the outstanding loan exceeds the property value.

As of June 2026, a 60% LTV 2-year fixed rate (averaging around 4.64% per Rightmove) is approximately 1 percentage point lower than the all-LTV average of 5.68%. On a £250,000 mortgage over 25 years, that 1 percentage point difference translates to over £100 per month in lower repayments during the fixed term - illustrating why increasing the deposit or building equity to reach a lower LTV band can be financially significant.

The LTV band thresholds that typically trigger rate improvements are: 90%, 85%, 80%, 75%, 70%, and 60%. Each step down generally unlocks a lower rate tier, with the biggest improvement typically between 75% and 60% LTV on most lenders' standard residential ranges.

How Average Rates Have Changed Since 2021

The current rate environment is the result of a significant tightening cycle. In January 2021, the average 2-year fixed rate was around 2.5%. The Bank of England began raising rates in December 2021 in response to rising inflation. By late 2023, the average 2-year fixed rate had exceeded 6.5%. Since then, the Bank has reduced the base rate from 5.25% to 3.75%, and fixed rates have eased progressively, though they remain well above the ultra-low levels of 2020 and 2021.

The comparison between June 2024 and June 2026 shows the 2-year fixed average has fallen 0.25 percentage points (from 5.93% to 5.68%). This modest easing reflects the base rate reductions made between August 2024 and December 2025, partially offset by market uncertainty about the inflation outlook in 2026.

Average SVR: The Cost of Inaction

The standard variable rate (SVR) averages approximately 7.13% in June 2026. This is the rate borrowers automatically revert to when a fixed deal expires without action being taken to remortgage. SVRs are set at each lender's discretion and can be changed at any time - they do not automatically track the base rate, though they broadly move in the same direction.

Individual SVRs vary significantly between lenders. According to Moneyfacts data from June 2026, SVRs across the market range from around 6.31% at some building societies to over 8% at some specialist lenders. Remaining on an SVR without reviewing alternatives represents a significant ongoing cost relative to the average 2-year fixed rate of 5.68%.

The FCA highlights the importance of timely remortgaging in its consumer guidance. Its research has found a significant proportion of borrowers remain on SVR after their fixed term ends, paying more than necessary for an extended period. The FCA recommends reviewing options up to 6 months before the current deal expires.

Buy-to-Let Average Rates

Buy-to-let mortgage rates follow a broadly similar pattern to residential rates but are typically priced at a premium, reflecting the different risk profile and regulatory treatment of investment property lending. Buy-to-let lenders assess affordability based on rental income coverage ratios rather than personal income, and the products are not regulated by the FCA in the same way as residential mortgages. Average buy-to-let fixed rates are not covered by the Moneyfacts residential averages cited above.

Frequently Asked Questions

What is the average mortgage rate in the UK in 2026?

The average 2-year fixed is 5.68% and the 5-year is 5.63% in June 2026 per Moneyfacts. At 60% LTV, rates are around 4.64% per Rightmove. Individual rates vary by LTV, credit history, and lender.

Have UK mortgage rates fallen since 2024?

The average 2-year fixed was 5.93% in June 2024 versus 5.68% in June 2026 - a reduction of 0.25pp. The Bank of England cut the base rate from 5.25% to 3.75% between August 2024 and December 2025, which has fed through partially to fixed-rate products.

What is the average SVR in the UK in 2026?

The average SVR is approximately 7.13% in June 2026 per Moneyfacts. Individual SVRs vary by lender from around 6.31% to over 8%. SVRs can be changed at any time and are generally above available fixed-rate alternatives.

What is the average mortgage rate at 90% LTV?

The all-LTV average of 5.68% includes 90% LTV products, which are typically priced above the average. At 90% LTV, rates are generally over 1 percentage point above the 60% LTV rate. An FCA-regulated broker can provide current rates at specific LTV bands.

How much will my payments increase when my 2021 fix ends?

This depends on your outstanding balance, remaining term, and the rates available at the time of remortgaging. The average 5-year rate in June 2021 was 2.59% versus 5.63% today. FCA-regulated advisers can model the specific payment difference for individual circumstances.

Understanding Mortgage Affordability Assessments

Lenders are required under FCA rules to conduct an affordability assessment for every mortgage application. This assessment considers the applicant's income, existing financial commitments, and the ability to continue servicing the mortgage if interest rates rise. Lenders use a stressed rate - typically the product rate plus a buffer of 1 to 3 percentage points - to assess whether the borrower could afford repayments if rates increase. This stressed rate assessment affects the maximum loan size a borrower can access as much as the actual product rate. At the current rate environment, affordability constraints have reduced the maximum loan sizes available to many borrowers compared to the low-rate era of 2020 and 2021.

The FCA's mortgage affordability rules have evolved since the Mortgage Market Review in 2014. In 2022, the FCA removed the specific 3% stressed rate buffer requirement that applied to fixed-rate mortgages for the term of the fix, while retaining the broader affordability assessment framework. Lenders continue to apply their own stress test approaches, meaning affordability calculations vary between lenders. An FCA-regulated mortgage adviser can explain the specific affordability approach of different lenders and identify which are most likely to approve a given application.

Overpayments and Mortgage Flexibility

Most fixed-rate mortgages in the UK allow overpayments of up to 10% of the outstanding balance per year without triggering early repayment charges. Overpaying reduces the outstanding loan balance faster than the standard repayment schedule, lowering the total interest paid over the mortgage term and improving the LTV ratio when the fixed deal ends - which can unlock a better rate band at the next remortgage. Even small regular overpayments compound meaningfully over a 25-year mortgage term. Borrowers should check their specific product terms before making overpayments, as the 10% limit and the calculation basis (annual versus daily outstanding balance) vary by lender.