TL;DR
- The Bank of England base rate was 4.25% as of June 2026, down from a peak of 5.25% in 2023-24.
- Two-year fixed mortgage rates ranged approximately 4.0%-5.5% in early 2026 depending on LTV and lender.
- Your rate depends on loan-to-value ratio, credit history, property type, and product type.
- FCA MCOB rules require lenders to stress-test affordability at a rate above the initial product rate.
- The FCA regulates mortgage advice. Any broker or lender must be FCA-authorised.
Last reviewed: June 2026 | Sources: Bank of England, FCA, ONS
Mortgage rates in the UK are influenced by the Bank of England base rate, swap rates in financial markets, and each lender cost of funding and risk appetite. Use the UK mortgage affordability calculator alongside this guide to estimate how much you can borrow at current rates.
Current mortgage rates UK: June 2026
The Bank of England base rate stands at 4.25% as of June 2026. Two-year and five-year fixed mortgage rates from major lenders range approximately 3.9% to 5.2% depending on loan-to-value (LTV) ratio. The table below shows indicative rate bands by product type and LTV as of June 2026. Rates change daily - verify current figures directly with lenders or via an FCA-authorised broker before making any decision.
| Product type | LTV | Indicative rate range | Notes |
|---|---|---|---|
| 2-year fixed | 60% LTV | 3.9% - 4.4% | Lowest tier, large deposit |
| 2-year fixed | 75% LTV | 4.1% - 4.7% | 25% deposit |
| 2-year fixed | 85-90% LTV | 4.5% - 5.2% | 10-15% deposit |
| 5-year fixed | 60% LTV | 3.8% - 4.3% | Longer certainty, often lower rate |
| 5-year fixed | 75% LTV | 4.0% - 4.6% | 25% deposit |
| 5-year fixed | 85-90% LTV | 4.3% - 5.0% | 10-15% deposit |
| Tracker (2-year) | 60-75% LTV | BoE base + 0.5% to 1.0% | Currently 4.75% - 5.25% |
| Standard variable rate (SVR) | Any (revert rate) | 6.5% - 8.5% | Set by each lender independently |
Indicative ranges based on publicly available lender rate data June 2026. Rates vary by lender, applicant profile and property type. Source: Bank of England. Verify directly with lenders before any decision.
Are mortgage rates going down in 2026?
The Bank of England Monetary Policy Committee (MPC) cut the base rate from 5.25% to 4.25% between August 2024 and May 2026, in a series of 0.25 percentage point steps. The direction of travel has been downward since the August 2024 cut, which was the first reduction since March 2020.
Market pricing via overnight index swap rates as of June 2026 implies the MPC may cut further, though the pace and timing are uncertain. Swap rates - which drive fixed mortgage pricing - have already moved in anticipation of further cuts, meaning some future base rate reductions may already be priced into current fixed-rate products.
Key factors the MPC monitors when setting rates include CPI inflation (target: 2%), wage growth, unemployment data from the ONS Labour Force Survey, and GDP growth. The MPC publishes its Monetary Policy Report quarterly at bankofengland.co.uk, which includes fan chart projections for the base rate path.
Key point: Fixed mortgage rates are driven by swap rates, not the base rate directly. Swap rates often move before the MPC acts. A base rate cut does not automatically mean fixed rates fall immediately - and rates can rise if markets price in fewer future cuts than previously expected.
Five-year fixed mortgage rates UK
Five-year fixed mortgages accounted for the majority of new residential lending in the UK in recent years, driven by borrowers seeking payment certainty during the 2022-2023 rate rise cycle. As of June 2026, five-year fixed rates are in many cases lower than equivalent two-year fixed rates, reflecting the yield curve shape - markets expect rates to fall over the medium term, which is embedded in the pricing of longer-term swap rates.
The trade-off with a five-year fix is the early repayment charge (ERC), typically 3-5% of the outstanding balance in year one, reducing annually. Borrowers who expect to move home or significantly overpay during the five-year term should factor ERC costs when comparing two-year versus five-year products. Under FCA MCOB rules, lenders must disclose all charges before mortgage completion.
Major lenders offering five-year fixed products in June 2026 include Barclays, Halifax, HSBC, Lloyds, Nationwide, NatWest, Santander, TSB, and Virgin Money. Building societies including Coventry, Leeds, and Yorkshire BS also participate actively in the five-year fixed market.
Remortgage rates UK: what to expect
Remortgage rates for June 2026 are broadly comparable to rates available for purchase mortgages at equivalent LTV. Borrowers coming off five-year fixed deals taken in 2021 (when average five-year fixes were approximately 2.0-2.5%) face materially higher revert rates. Those rolling off two-year deals from 2023-2024 (when rates peaked at 5.5-6.5%) may find current rates offer some improvement.
| Remortgage option | Affordability check | Legal fees | Rate access |
|---|---|---|---|
| Product transfer (same lender) | Usually not required | None | Existing lender range only |
| Full remortgage (new lender) | Full assessment required | Usually covered by lender | Whole of market |
| Further advance | Full assessment on extra borrowing | Minimal | Existing lender only |
The FCA requires lenders to send a remortgage reminder at least 14 days before the end of a fixed term under MCOB 7.6A. Many lenders allow rate locks 3-6 months ahead, with the ability to switch to a lower rate if products improve before drawdown.
Buy-to-let mortgage rates UK
Buy-to-let (BTL) mortgage rates in June 2026 are typically 0.5 to 1.5 percentage points higher than equivalent residential rates. BTL mortgages are largely unregulated by the FCA (unless used for family occupation), so consumer protection under MCOB is more limited than for residential mortgages.
BTL affordability is assessed on rental income coverage rather than personal income. Most lenders require rental income to cover 125-145% of the mortgage interest payment at a stressed rate (typically 5.5-6.0%). Tax changes affecting landlords include removal of mortgage interest relief (replaced with a 20% tax credit under Section 24 Finance Act 2015), increased Stamp Duty Land Tax surcharge (5% above standard rates for additional dwelling purchases as of October 2024), and Capital Gains Tax on disposal. Landlords should seek advice from a qualified accountant before acquiring BTL property.
First-time buyer mortgage rates UK
First-time buyers typically access the market at 85-95% LTV, where rates are higher to reflect lender risk. At 95% LTV, rates in June 2026 range approximately 5.0-5.8% for two-year fixes across major lenders. The government Mortgage Guarantee Scheme (MGS) supported 95% LTV lending from participating lenders including Barclays, Halifax, HSBC, Lloyds, Nationwide, NatWest, Santander, and Virgin Money.
First Homes is the successor to Help to Buy Equity Loan (closed to new applicants in March 2023). It provides discounted purchase prices - a minimum 30% discount on market value - to eligible first-time buyers in qualifying new-build developments, with the discount attached to the property in perpetuity. Shared Ownership allows buyers to purchase a share (typically 25-75%) of a property and pay rent on the remainder, with mortgages available from specialist lenders on the purchaser's share.
Under FCA MCOB affordability rules, lenders stress-test first-time buyer applications at a rate approximately 2-3 percentage points above the initial product rate. This stress test rate explains why borrowers with good incomes may find maximum borrowing lower than face-value income multiples suggest.
Tracker versus fixed: which to consider
Tracker mortgages follow the Bank of England base rate plus a fixed margin. As of June 2026 with the base rate at 4.25%, a tracker at base rate + 0.75% pays 5.0%. If the MPC cuts to 4.0%, the tracker drops to 4.75% automatically. Trackers typically have no early repayment charge (ERC) during the tracker term, providing flexibility for borrowers who expect to move or make large overpayments.
| Feature | Fixed rate | Tracker rate |
|---|---|---|
| Monthly payment | Constant for fixed term | Varies with base rate |
| Early repayment charge | Yes - typically 1-5% | Often none |
| Benefits from rate cuts | No - rate locked in | Yes - automatically |
| Payment certainty | High | Lower - varies monthly |
| Pricing driver | Swap rates | Bank of England base rate |
Major lender mortgage rates: June 2026
The following lenders are among the largest mortgage providers in the UK by gross lending. Rate positioning changes frequently - the summary below reflects general market positioning as of June 2026 and is indicative only. Always check current published rates directly with each lender or via an FCA-authorised mortgage broker who has access to the full market.
| Lender | Type | Market positioning | FCA status |
|---|---|---|---|
| Halifax (Lloyds Banking Group) | Bank | Largest residential mortgage lender by volume | FCA-authorised |
| Nationwide Building Society | Building society | Mutual; competitive on 5-year fixes | FCA-authorised |
| Barclays | Bank | Competitive at lower LTV; strong offset product range | FCA-authorised |
| HSBC UK | Bank | Rate leader at low LTV; broker channel via HSBC for Intermediaries | FCA-authorised |
| NatWest / RBS | Bank | Strong tracker range; competitive at 75-85% LTV | FCA-authorised |
| Santander UK | Bank | Competitive remortgage rates; flexible overpayment terms | FCA-authorised |
All mortgage lenders and brokers operating in the UK must be authorised and regulated by the FCA. Verify any lender or broker on the FCA Financial Services Register at register.fca.org.uk before proceeding.
How UK mortgage rates are set
Lenders price mortgages by adding a margin above their cost of borrowing. For tracker mortgages, the cost of borrowing is directly linked to the Bank of England base rate. For fixed-rate mortgages, lenders use swap rates - derivatives that allow them to exchange variable for fixed interest payments over a set period. Swap rates move ahead of base rate changes and reflect market expectations for future rate movements. The Bank of England base rate was 4.25% in June 2026.
Fixed versus tracker mortgages
A fixed-rate mortgage locks in an interest rate for a defined period, typically two or five years. Monthly payments remain constant regardless of base rate movements. At the end of the fixed term, the borrower moves to the lender standard variable rate (SVR) unless they remortgage. A tracker mortgage follows the Bank of England base rate plus a fixed margin. An SVR is set by each lender at its discretion and is typically higher than fixed or tracker products.
Loan-to-value and how it affects your rate
Loan-to-value (LTV) is the mortgage amount expressed as a percentage of the property value. Lower LTV typically results in a lower interest rate. Moving from 85% LTV to 80% LTV by increasing your deposit can substantially reduce the rate. Use the mortgage affordability calculator to model LTV scenarios alongside income multiples.
RELATED GUIDES: Mortgages and Property Finance
Affordability and credit assessment
Under FCA mortgage conduct rules (MCOB), lenders must assess affordability before granting a regulated mortgage contract. Affordability assessment considers income, existing debts, committed expenditure, and stress-testing against potential rate increases. Credit history is assessed via credit reference agencies. County Court Judgments (CCJs), missed payments, and high credit utilisation all affect the rate offered.
Regulatory framework
Mortgage lending and advice in the UK is regulated by the FCA under the Mortgage Credit Directive as implemented in the UK following Brexit. All mortgage lenders and brokers must be FCA-authorised. The Financial Ombudsman Service handles complaints about mortgage lenders and brokers.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Mortgage products and rates change frequently. All mortgage lending is subject to status and affordability assessment. Always verify current rates with lenders or via an FCA-authorised broker.
Frequently asked questions
What is the current Bank of England base rate?
The Bank of England base rate was 4.25% as of June 2026. The Monetary Policy Committee publishes rate decisions and forecasts at bankofengland.co.uk.
How does a mortgage rate differ from a personal loan rate?
Mortgage rates are secured against property and typically carry much lower APRs than personal loans, which are unsecured. The trade-off is that failure to repay a mortgage puts the property at risk of repossession, whereas an unsecured loan does not.
What is APRC on a mortgage?
APRC (Annual Percentage Rate of Charge) is the measure used for mortgages. It includes the interest rate and mandatory fees spread over the full term, providing a single comparable figure. For mortgages, always compare using APRC and the initial rate for the fixed or tracker period.
Can I get a mortgage with a 5% deposit?
Yes. 95% LTV mortgages are available from a range of lenders. The government mortgage guarantee scheme has supported 95% LTV product availability. Rates at 95% LTV are higher than at lower LTV tiers.
What happens when my fixed rate ends?
At the end of the fixed term, the mortgage reverts to the lender SVR unless you remortgage. SVRs are usually higher than available fixed rates. The FCA requires lenders to contact borrowers before the end of a fixed term to provide information about available products.
How this guide was verified
This article draws on Bank of England MPC minutes, FCA MCOB sourcebook, ONS House Price Index, and HM Treasury mortgage guarantee scheme documentation. No secondary aggregator sites were used as sources.
