Best Mortgage Rates UK: June 2026 Rates by LTV Band

Fixed mortgage rates in the UK have fallen substantially from the 6%+ peaks of mid-2023 but remain well above the sub-2% levels of 2020-21. For the 1.8 million households whose fixed-rate deals expire in 2026, understanding the current rate environment and acting before the rollover date is the most important financial decision of the year.

Where are mortgage rates now?

The Bank of England base rate stood at 4.25% in May 2026 following a series of cuts from the 5.25% peak held through most of 2023. Average rates for new fixed-rate advances have fallen in response, though the transmission is gradual and varies significantly by LTV band and lender.

Bank of England Bankstats data (April 2026) shows the average 2yr fixed rate for borrowers with a 25% deposit at 5.14%, with the average 5yr fixed at 5.00%. This inverted relationship - where the longer fix is cheaper than the shorter - reflects market expectations that rates will continue to fall over the medium term, so lenders are pricing 5yr products more competitively to attract customers.

The FCA Mortgage Lending and Administration Return (MLAR) published June 2026 shows new mortgage commitments at £78 billion in Q1 2026, up 14.2% year on year. Outstanding residential mortgage balances reached £1.746 trillion by Q4 2025.

2yr fixed vs 5yr fixed: which is right in 2026?

The choice between a 2yr and 5yr fix in 2026 depends on rate expectations and personal circumstances. Currently 5yr rates are lower than 2yr rates, which is the opposite of the historical norm. This suggests the market is pricing in further base rate reductions over the next two to three years.

For borrowers who expect rates to fall further, a 2yr fix provides flexibility to remortgage at a potentially lower rate in 2028. For borrowers who want certainty and to avoid further remortgage costs, a 5yr fix at a currently lower rate provides longer-term stability.

Both strategies carry risk. If rates fall faster than markets expect, a 5yr fix locks in a higher rate than necessary. If rates remain sticky or rise, the 2yr fix expires into a more expensive environment. Neither outcome can be predicted with certainty.

The 1.8 million expiring fixes: what happens if you do nothing?

UK Finance forecasts that 1.8 million fixed-rate mortgage deals will expire in 2026. Borrowers who take no action when their fix ends automatically roll onto their lender's Standard Variable Rate (SVR). SVRs in 2026 typically run between 7% and 8.5% - materially higher than the best available fixed rates.

On a £200,000 mortgage balance, the difference between a 5.14% fix and a 7.5% SVR amounts to approximately £392 per month in additional interest. Over a 12-month period on SVR before remortgaging, this is approximately £4,700 in unnecessary cost.

Most lenders allow remortgage applications to be submitted up to six months before the current deal expires, with the new rate locked at submission. Borrowers approaching the end of a fixed term should begin comparing rates three to six months before expiry.

How lenders price mortgage rates

Mortgage rates are priced primarily off SONIA swap rates (the market's expectation of future Bank of England base rates over the fix term), with lenders adding a margin to cover credit risk, operating costs and profit. When swap rates fall - typically when markets expect base rate cuts - fixed mortgage rates follow, though with a lag and with variation between lenders.

LTV band is the second most significant pricing factor. A borrower at 60% LTV (40% deposit or equity) represents lower risk to the lender than one at 90% LTV, and lenders reflect this in substantially lower rates. The difference between the best 60% LTV rate and the best 95% LTV rate in April 2026 was approximately 0.83 percentage points, equivalent to over £1,200 per year on a £200,000 balance.

What the FCA mortgage data shows

The FCA MLAR (June 2026) shows several important trends. Remortgage share of gross advances rose to 29% in Q2 2025, the highest since Q1 2024. Buy-to-let advances represented 8.4% of gross advances in Q4 2025. First-time buyer lending increased to 31.4% of owner-occupier house purchase advances in Q1 2025, the highest share since reporting began in 2007. Mortgage arrears continue to fall, with the value of outstanding balances in arrears at £20.4 billion in Q4 2025, down 5.3% year on year.

How to compare mortgage rates effectively

The headline rate is not the only cost. When comparing mortgage products, the true cost of a deal includes the arrangement fee (typically £500-£1,999), any booking fee, valuation fees and the overall cost of credit expressed as an APRC (Annual Percentage Rate of Charge). A product with a lower headline rate but a £2,000 arrangement fee may cost more overall than a slightly higher rate with no fee, particularly for smaller loan balances or shorter initial periods.

Mortgage brokers with whole-of-market access can search across 200+ lenders including those not available direct. FCA Consumer Duty requirements mean brokers must demonstrate their recommendations are in the customer's best interest. Under FCA rules, brokers must be authorised and their authorisation can be verified at the FCA Register (register.fca.org.uk).

Frequently asked questions

What is the average UK mortgage rate in June 2026?

Bank of England Bankstats data (April 2026) shows the average 2yr fixed rate for new advances at 5.14% for borrowers with a 25% deposit (75% LTV), and the average 5yr fixed at 5.00% for the same LTV. Rates are higher for borrowers with smaller deposits and lower for those with larger deposits or more equity.

Should I fix for 2 or 5 years in 2026?

5yr fixed rates are currently lower than 2yr fixed rates, which reflects market expectations of further base rate reductions. A 5yr fix provides longer certainty at a currently lower rate. A 2yr fix provides more flexibility to remortgage if rates fall further. The right choice depends on individual circumstances, risk appetite and how long the borrower plans to stay in the property.

What happens when my fixed mortgage ends?

When a fixed-rate deal expires, the mortgage automatically moves to the lender's Standard Variable Rate (SVR) unless the borrower acts. SVRs in 2026 typically range from 7% to 8.5%, substantially higher than the best available fixed rates. Borrowers should begin comparing remortgage options three to six months before their deal ends.

How many mortgages are expiring in 2026?

UK Finance forecasts 1.8 million fixed-rate mortgage deals will expire in 2026. This is the largest single-year expiry cohort since 2008 and reflects the large number of borrowers who fixed at historically low rates in 2020-21 on 5yr terms, now reaching maturity.

What is an SVR mortgage?

A Standard Variable Rate (SVR) mortgage is the lender's default rate, applied automatically when a fixed or tracker deal expires. SVRs are set at the lender's discretion and are not directly linked to the Bank of England base rate, though they typically move in the same direction. SVRs are generally the most expensive mortgage rate a borrower will pay and should be avoided where possible.