The Bank of England base rate was 3.75 per cent at the end of August 2026. Among named lenders in late August, Barclays offered 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 loan to value. Average fixed rates sat near 5.5 to 5.6 per cent.
TL;DR · LAST REVIEWED 30 AUGUST 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 two year fix near 5.5 per cent, five year near 5.6 per cent (Moneyfacts).
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 two year fixed rate near 5.5 per cent; five year near 5.6 per cent (Moneyfacts, August 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 | around 5.5 per cent | Moneyfacts, August 2026 |
| Average five year fixed rate | around 5.6 per cent | Moneyfacts, August 2026 |
| Best two year fix at 60 per cent LTV | around 4.4 per cent | Market, early August 2026 |
| Average standard variable rate | around 7.1 per cent | Moneyfacts, August 2026 |
| CPI inflation | 2.6 per cent | ONS, to June 2026 |
Source: Bank of England, ONS and Moneyfacts, August 2026
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 its 30 July 2026 meeting, with the next decision due on 17 September 2026, and inflation stood at 2.6 per cent.
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, well below the market averages near 5.5 per cent, 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
Average fixed rates in August 2026 sat near 5.5 per cent on a two year fix and 5.6 per cent on a five year fix, unusually close because markets expect further base rate cuts. 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.
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. The next scheduled decision is 17 September 2026.
What is the average mortgage rate right now
Average fixed rates sat near 5.5 per cent on a two year fix and 5.6 per cent on a five year fix in August 2026 (Moneyfacts). These are market averages.
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
