Bank Rate is 3.75 per cent, unchanged since December 2025, with the next decision on 5 November 2026. Bank of England figures for September 2026 put the average quoted two year fix at 5.13 per cent and the five year fix at 4.98 per cent at 75 per cent loan to value, with trackers at 4.23 per cent.
TL;DR · LAST REVIEWED 31 OCTOBER 2026
- The Bank of England base rate was 3.75 per cent at end of August 2026.
- Barclays, Halifax and Nationwide showed lowest rates near 4.35 to 4.48 per cent at low LTV.
- Average quoted rates at 75 per cent LTV in September 2026: two year fix 5.13 per cent, five year fix 4.98 per cent (Bank of England).
Named UK lenders and lowest published rates, late August 2026
| Lender | Published note | Lowest published rate |
| Halifax | UK's largest mortgage lender (Lloyds) | 5 year fix around 4.38 per cent (£1,099 fee) |
| Barclays | Cut selected rates in August | 5 year tracker around 4.35 per cent (£1,058 fee) |
| Nationwide | Largest building society | Lowest around 4.48 per cent at 60 per cent LTV (£1,499 fee) |
| Santander | Cut most residential fixed rates | 10 year fix around 5.09 per cent (£1,224 fee) |
| HSBC | Reduced selected residential rates | Lending limits increased across the range |
| NatWest | Competitive for first time buyers | Among the lowest 2 year deals at low LTV |
Source: Mortgage Advice Bureau and lender updates, late August 2026
KEY FACTS
- Bank of England base rate held at 3.75 per cent on 30 July 2026; next decision 17 September (BoE).
- Halifax, the UK's largest mortgage lender, showed a five year fix near 4.38 per cent (late August 2026).
- Nationwide, the largest building society, showed a lowest rate near 4.48 per cent at 60 per cent LTV.
- Average quoted two year fixed rate at 75 per cent LTV 5.13 per cent; five year 4.98 per cent (Bank of England, September 2026).
- CPI inflation was 2.6 per cent in the year to June 2026 (ONS).
UK mortgage market benchmarks, August 2026
| Measure | Figure | Source |
| Bank of England base rate | 3.75 per cent | BoE, held 30 July 2026 |
| Average two year fixed rate | 5.13 per cent (75 per cent LTV) | Bank of England, September 2026 |
| Average five year fixed rate | 4.98 per cent (75 per cent LTV) | Bank of England, September 2026 |
| Best two year fix at 60 per cent LTV | around 4.4 per cent | Market, early August 2026 |
| Average standard variable rate | 6.58 per cent | Bank of England, September 2026 |
| CPI inflation | 2.6 per cent | ONS, to June 2026 |
Source: Bank of England and ONS
What named lenders are offering
The lenders above showed the lowest published rates in late August 2026. Halifax, the UK's largest mortgage lender and part of Lloyds, listed a five year fix near 4.38 per cent with a £1,099 fee. Barclays offered a five year tracker near 4.35 per cent and cut several fixed rates, Nationwide, the largest building society, reduced rates twice in the month to a lowest of around 4.48 per cent at 60 per cent loan to value, and Santander cut most residential fixed rates. These are the sharpest advertised rates and typically require a large deposit.
The base rate and mortgage rates are not the same
The Bank of England base rate, 3.75 per cent at the end of August 2026, is the baseline for tracker and standard variable rate mortgages. Fixed rates are priced off swap rates, which reflect where markets expect the base rate to go, so fixed deals can move independently of any single base rate decision. The Bank held the rate at 3.75 per cent at its June, July and September 2026 meetings, and the next decision is due on 5 November 2026.
Deposit size drives the rate
Loan to value has a large effect. The best deals for borrowers with a 40 per cent deposit, a 60 per cent loan to value mortgage, fell to around 4.4 per cent in early August 2026, below the Bank of England's September 2026 average of 5.13 per cent for a two year fix at 75 per cent LTV, while 90 and 95 per cent loan to value deals cost noticeably more. Product fees such as the £1,099 to £1,499 charges above also change the true cost, so the headline rate alone is not the full picture.
Two year versus five year fixes
Bank of England quoted rates for September 2026 put a two year fix at 75 per cent LTV at 5.13 per cent and a five year fix at 4.98 per cent, so five year fixes were slightly cheaper. A two year fix gives an earlier chance to remortgage onto lower rates if they fall; a five year fix trades that for payment certainty. Early repayment charges apply to both if left before the term ends.
DISCLAIMER
This article is editorial information, not financial advice. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority. Figures were correct at the last review date shown above; verify current rates and rules with the primary sources listed below before acting.
UK mortgage rates by loan to value: Bank of England figures for September 2026
Checked 31 October 2026 against the primary sources listed. Prices, rates and terms are set by each provider and can change.
The Bank of England publishes average quoted rates on new mortgages each month, split by deal type and loan to value (LTV). These are the latest figures, for September 2026, published on 29 October 2026.
| Deal | September 2026 | September 2025 |
|---|---|---|
| 2 year fixed, 60% LTV | 5.01% | 4.03% |
| 2 year fixed, 75% LTV | 5.13% | 4.19% |
| 2 year fixed, 85% LTV | 5.26% | 4.32% |
| 2 year fixed, 90% LTV | 5.37% | 4.58% |
| 2 year fixed, 95% LTV | 5.70% | 5.03% |
| 3 year fixed, 75% LTV | 4.93% | 4.18% |
| 5 year fixed, 75% LTV | 4.98% | 4.16% |
| 5 year fixed, 95% LTV | 5.54% | 4.90% |
| 2 year tracker, 75% LTV | 4.23% | 4.26% |
| Standard variable rate | 6.58% | 6.80% |
Bank of England quoted household interest rates, series IUMZICQ, IUMBV34, IUMZICR, IUMB482, IUM2WTL, IUMBV37, IUMBV42, IUM5WTL, IUMBV48 and IUMTLMV.
What is the average mortgage rate in the UK?
The effective rate on newly drawn mortgages was 4.63% in September 2026, up from 4.19% a year earlier, and the rate on all outstanding mortgages was 4.03%. Quoted rates at 75% LTV were 5.13% on a 2 year fix and 4.98% on a 5 year fix.
How does LTV change the rate?
LTV is the loan as a share of the property's value: a £180,000 loan on a £200,000 home is 90% LTV with a 10% deposit. In September 2026 the average 2 year fix rose from 5.01% at 60% LTV to 5.70% at 95% LTV. HSBC UK, for example, prices fixed rates in bands of 60%, 70%, 75%, 80%, 85%, 90% and 95%.
Why are tracker rates lower than fixed rates now?
The average 2 year tracker at 75% LTV was 4.23% in September 2026, against 5.13% for a 2 year fix. Fixed rates rose by about a percentage point over the year while Bank Rate stayed at 3.75%, unchanged since 18 December 2025. Tracker rates move with Bank Rate; the next decision is due on 5 November 2026.
What is a lifetime tracker mortgage?
A lifetime tracker follows a benchmark such as Bank Rate plus a set margin for the whole mortgage term, often 25 to 35 years, according to NatWest. first direct's Lifetime Tracker runs for the remaining term or until the borrower changes rate, with no early repayment charges. The Bank of England's lifetime tracker series shows no published average for September 2026.
Can a mortgage be fixed for 10 or 15 years?
Long fixes are offered by some lenders. Nationwide lists 2, 3, 5 and 10 year fixed terms. The Bank of England publishes average quoted rates for 2, 3 and 5 year fixes only, so no official average exists for 10 or 15 year fixes.
What are Skipton Building Society's mortgage rates?
On 31 October 2026 Skipton's Mortgage Finder listed 2 year fixed rates from 5.13% (APRC 6.40%, £1,495 fee) and 2 year trackers from 4.29% (APRC 6.20%, £995 fee) with a 3.00% floor; no 5 year fixed products were shown. Skipton's Residential Mortgage Variable Rate is 6.29%, correct as of 17 September 2026.
How do lenders test affordability?
Under FCA rule MCOB 11.6.18R, lenders must check affordability against likely rate rises over at least 5 years, unless the rate is fixed for 5 years or more.
Sources: Bank of England: quoted mortgage rates; Bank of England: Money and Credit, September 2026; Bank of England: Bank Rate; Nationwide: introduction to mortgages; HSBC UK mortgage rates; NatWest: tracker mortgages; first direct: tracker mortgage; Skipton: find a mortgage; Skipton variable rates; FCA: interest rate stress test.
Averages are not offers. Kael Tripton is not a mortgage broker and does not provide financial advice.
Frequently asked questions
Which lender has the cheapest mortgage rate now
In late August 2026 Barclays showed a five year tracker near 4.35 per cent, Halifax a five year fix near 4.38 per cent and Nationwide a lowest rate near 4.48 per cent at 60 per cent LTV. All require a large deposit.
What is the Bank of England base rate in August 2026
The base rate was 3.75 per cent, held at the 30 July 2026 meeting. It was held again on 17 September 2026, and the next scheduled decision is 5 November 2026.
What is the average mortgage rate right now
The Bank of England's effective rate on new mortgages was 4.63 per cent in September 2026. Average quoted rates at 75 per cent LTV were 5.13 per cent on a two year fix and 4.98 per cent on a five year fix.
Why is my fixed rate higher than the base rate
Fixed mortgages are priced off swap rates plus the lender margin, not the base rate directly, so a fix can sit above it.
How much does my deposit affect the rate
A great deal. Borrowers at 60 per cent loan to value saw rates near 4.4 per cent in early August 2026, while 90 and 95 per cent deals cost noticeably more.
SOURCES
- Bank of England: Bank Rate - accessed 30 August 2026
- ONS: inflation and price indices - accessed 30 August 2026
Update 12 October 2026: Bank Rate held at 3.75% The Bank of England's Bank Rate stands at 3.75%, according to the Bank of England. The Bank of England held Bank Rate at 3.75% at its June, July and September 2026 meetings, with the latest decision published on 17 September 2026. The next Bank of England rate decision is due on 5 November 2026. Tracker and standard variable rate mortgages move with Bank Rate. Fixed rates are priced separately and can move independently of a single decision. Source: Bank of England Bank Rate page (https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate). |
