Current Fixed Mortgage Rates UK 2026

What Is a Fixed-Rate Mortgage?

A fixed-rate mortgage locks the interest rate for a set period, most commonly 2 or 5 years, though 3-year and 10-year fixed products also exist in the market. During the fixed term, monthly repayments do not change regardless of movements in the Bank of England base rate or financial markets. At the end of the fixed term, the mortgage reverts to the lender's standard variable rate (SVR) unless the borrower remortgages to a new product.

Fixed rates are the most common mortgage type in the UK. The FCA's mortgage market data shows the majority of residential mortgage lending is on fixed-rate terms, reflecting borrower demand for payment certainty during a period of elevated and volatile interest rates. The proportion of fixed-rate lending increased sharply after 2022 as rates rose and borrowers sought protection against further increases.

Current Fixed Mortgage Rate Averages (June 2026)

According to Moneyfacts data for June 2026, the average fixed-rate mortgage rates across the UK market are as follows. These figures are market averages across a range of LTV bands and lender types, and should not be treated as rates available to any individual borrower without assessment. Rates are updated daily and the figures below represent a point-in-time snapshot.

How Fixed Mortgage Rates Are Priced

Fixed-rate mortgage pricing is driven primarily by swap rates - financial agreements between institutions about future interest rate expectations - rather than by the Bank of England base rate. When financial markets expect interest rates to remain elevated or rise, swap rates increase and fixed mortgage rates follow. When markets price in future cuts, swap rates can fall even before the Bank of England acts.

This disconnect between the base rate and fixed mortgage rates is why fixed rates can move sharply even when the MPC holds steady. In early 2026, geopolitical events in the Middle East pushed energy prices higher, which caused swap rates to rise as financial markets revised upward their expectations for how long inflation would remain elevated. Fixed mortgage rates rose in March 2026 as a result, before moderating from mid-April as expectations calmed.

Lenders also factor in their own cost of funding, competitive positioning, and appetite for new business when pricing fixed rates. This means that even two lenders using the same underlying swap rate data can price their fixed products differently based on commercial decisions.

2-Year Fixed vs 5-Year Fixed: Key Trade-offs

The choice between a 2-year and 5-year fixed rate involves a trade-off between flexibility and certainty. A 2-year fix gives the borrower the opportunity to reassess and potentially remortgage to a lower rate in 2 years if rates fall. However, it also means more frequent remortgaging costs - legal fees, valuation fees, and potentially new arrangement fees every 2 years.

A 5-year fix provides 5 years of payment certainty and eliminates the need to remortgage as frequently. The trade-off is reduced flexibility: if circumstances change - a job move, a relationship change, a need to release equity - early repayment charges (ERCs) on a 5-year fix are typically higher than on a 2-year product and reduce in steps over the fixed term.

As of June 2026, the average 5-year fixed rate (5.63%) is marginally below the average 2-year fixed rate (5.68%). This narrow spread reflects market expectations that rates may fall over the coming years, but the premium for longer-term certainty is currently very small.

What Affects Your Individual Fixed Rate Offer?

The rate offered to a specific borrower will typically differ from market averages based on the loan-to-value ratio, credit history and score, income type and stability, property type and location, loan size, and the specific lender's own risk appetite at the time of application. Borrowers with a larger deposit or more equity access lower rates as the lender carries less risk against the security.

Arrangement fees are an important part of the total cost comparison. A 60% LTV borrower might access a 2-year rate of around 4.40% from certain lenders as of June 2026 (Rightmove data), compared to the market average of 5.68% across all LTVs. The difference between 60% LTV and 90% LTV products can exceed 1 percentage point, representing a significant difference in monthly payments over the fixed term.

APRC: The True Cost Comparison Measure

The Annual Percentage Rate of Charge (APRC) is the standardised measure lenders must publish under FCA rules to allow total cost comparison. It incorporates the headline interest rate, any arrangement fees paid upfront or added to the loan, and any other mandatory charges over the full mortgage term. A lower headline rate with a £999 arrangement fee may have a higher APRC than a slightly higher rate with no fee, depending on the loan size and remaining term.

When comparing deals, the APRC is useful but assumes you hold the mortgage for its full term. In practice, many borrowers remortgage at the end of the fixed period and never pay the full term rate. The APRC for the initial fixed period - sometimes expressed separately as the initial rate cost - is also worth examining alongside the APRC.

Early Repayment Charges Explained

Most fixed-rate mortgages include early repayment charges (ERCs) if the borrower repays more than the allowed overpayment limit (usually 10% of the outstanding balance per year) or exits the deal before the fixed term ends. ERCs are typically expressed as a percentage of the outstanding balance and reduce over the fixed term period - for example, 5% in year 1, 4% in year 2, and so on for a 5-year fix.

Portability is an important consideration for borrowers who may move house during the fixed term. Many fixed-rate mortgages allow the deal to be transferred (ported) to a new property when moving, avoiding ERCs. Portability is subject to the lender re-approving the new property and the borrower's circumstances at the time of the move.

FCA-Regulated Mortgage Advisers

Whole-of-market mortgage brokers regulated by the FCA have access to a wider range of products than a single lender. Some deals are exclusively available through brokers and are not offered directly to consumers. Brokers must provide a suitability assessment and are required to act in the client's best interest under FCA conduct rules. The FCA register at register.fca.org.uk allows borrowers to verify whether any individual or firm is authorised to give mortgage advice.

Frequently Asked Questions

What is the current fixed mortgage rate in the UK?

The average 2-year fixed rate is 5.68% and the average 5-year fixed rate is 5.63% as of June 2026 per Moneyfacts. At 60% LTV, rates from certain lenders are around 4.64% per Rightmove. Rates change daily and individual offers depend on personal circumstances.

Will fixed mortgage rates fall in 2026?

This depends on swap rate movements and Bank of England decisions. CPI inflation at 3.3% remains above the 2% target, limiting the pace of any easing. Some lenders cut fixed rates in April and May 2026 as swap rate expectations moderated, but the picture remains uncertain. This article does not provide forecasts.

What LTV gives the best fixed mortgage rate?

Lower LTV ratios unlock lower rates. At 60% LTV, the average 2-year fix is around 4.64% (Rightmove, June 2026) versus 5.68% across all LTVs. The difference between 60% and 90% LTV typically exceeds 1 percentage point.

Can I lock in a fixed rate before my current deal ends?

Most lenders allow rate reservations 3 to 6 months before the current deal ends. The FCA recommends beginning the remortgage process up to 6 months in advance to avoid rolling onto the higher SVR. Some lenders allow switching to a better rate if one becomes available before completion.

What are early repayment charges on a fixed mortgage?

ERCs are fees charged for exiting a fixed-rate deal before the term ends, typically expressed as a percentage of the outstanding loan balance. They reduce over the fixed term. Most lenders allow overpayments of up to 10% of the outstanding balance per year without triggering ERCs.

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.