Family Building Society raises every fixed rate by 0.60 percent

What changed

Source: Family Building Society, 16 September 2026.

Family Building Society issued a notice to intermediaries on 16 September 2026 confirming that from Wednesday 16 September it had repriced and relaunched its Fixed Rate product ranges across Owner Occupier and Buy to Let lending. Every fixed rate product increased by 0.60 percentage points, and all fixed rate products now carry refreshed, longer end dates. No changes were made to variable rate products, meaning discount and tracker deals, or to mortgage reversionary rates. The distinction matters for anyone comparing a fix against a tracker, because only the fixed side of the book moved.

The new owner occupier repayment rates show where the range sits. The 2 Year Core product is 6.14 percent at 60 percent LTV and 6.24 percent at 80 percent LTV. The 5 Year Core product is 6.09 percent at 60 percent and 6.19 percent at 80 percent, with a product fee of 999 pounds. For joint borrower sole proprietor cases, the 2 Year JBSP is 6.29 percent at 80 percent LTV and 6.39 percent at 90 percent, while the 5 Year JBSP is 6.24 percent at 80 percent and 6.34 percent at 90 percent, with a 599 pound product fee. The 5 Year Family Mortgage is 6.39 percent at 100 percent LTV with no product fee.

Interest-only fixed rates run higher. The 2 Year Core is 6.49 percent at 60 percent LTV and 6.64 percent at 80 percent, and the 5 Year Core is 6.49 percent at 60 percent and 6.64 percent at 80 percent, both with a 999 pound fee. The 2 Year JBSP interest-only rate is 6.74 percent at 80 percent with a 599 pound fee. On the buy to let side, new business fixed rates at 75 percent LTV include the 2 Year UK Landlord at 6.24 percent with a 1.00 percent fee or 5.79 percent with a 2.00 percent fee, the 5 Year UK Landlord at 6.39 percent, the 2 Year Limited Company at 6.44 percent or 5.99 percent with a 2.00 percent fee, the 5 Year Limited Company at 6.39 percent, the 2 Year Expat at 6.49 percent or 6.09 percent with a 2.00 percent fee, and the 5 Year Expat at 6.54 percent.

HMO fixed rates for new business at 75 percent LTV range from 6.44 to 6.74 percent with a 1.00 percent fee. Existing borrower product switch and further advance rates run from 6.44 to 6.94 percent with no fee. The society says semi-exclusive products are available through packaging partners, and that its team of business development managers covers England, Wales and Scotland. The notice is a lender to intermediary communication rather than a consumer press release, so the figures are aimed at brokers placing cases rather than at borrowers reading a headline rate.

What 0.60 costs a borrower

A 0.60 percentage point increase is not an abstract number once it is applied to a balance. On a 200,000 pound repayment mortgage over 25 years, a rise of 0.60 points adds roughly 70 pounds a month. On a 300,000 pound loan over the same term, the same increase adds about 105 pounds a month. Over a two-year fix, that monthly difference compounds into a meaningful sum, which is why the timing of a repricing matters as much as the headline rate attached to a product.

The fee structure complicates a straight rate comparison. Where a fee-free product is compared with a product carrying a 999 pound fee, the fee is worth about 0.1 to 0.2 percentage points a year on a 200,000 pound loan over a two-year fix. That means a lower headline rate with a fee attached is not automatically the cheaper option, and a higher rate with no fee can work out better over a short fix. The same logic applies across the range, where buy to let products are offered at different rates depending on whether the fee is 1.00 percent or 2.00 percent.

Borrowers comparing the new owner occupier rates against the buy to let rates should also note the LTV bands. The owner occupier Core products are quoted at 60 percent and 80 percent LTV, the JBSP products at 80 percent and 90 percent, and the Family Mortgage at 100 percent LTV. Buy to let new business rates are quoted at 75 percent LTV, and HMO rates at 75 percent LTV. A rate quoted at one LTV is not directly comparable with a rate quoted at another, so the loan to value attached to each figure is part of the calculation rather than a footnote.

Interest-only borrowers face a different arithmetic again, because the monthly cost reflects interest on the balance rather than capital repayment. The interest-only fixed rates run from 6.49 percent to 6.74 percent depending on term, LTV and borrower type. For anyone weighing a fix against a variable deal, the unchanged variable, discount and tracker products and the unchanged reversionary rates are the comparison point, since only the fixed range was repriced on 16 September.

Why now

The Monetary Policy Committee decides on Thursday 17 September 2026, with Bank Rate at 3.75 percent. The repricing took effect the day before that decision. CPI inflation rose to 3.1 percent in the 12 months to August 2026, according to ONS data published on 16 September 2026, the same day as the society's notice. The sequencing is not a coincidence in the way mortgage pricing works, because fixed rates are not set directly from Bank Rate.

Fixed mortgage rates are priced from swap rates, which move on expectations of future interest rates rather than on the current Bank Rate. That is why repricing happens before decisions rather than after them. A lender adjusting its fixed range is responding to where swap markets have moved, and to the cost of funding a fix for two or five years, not to the Bank Rate announcement itself. The decision on 17 September may confirm or contradict those expectations, but the fixed rate book has already been repriced against them.

The wider market context shows this is not an isolated move. Moneyfacts reported on 15 September 2026 that the average two-year fixed mortgage rate was 5.73 percent, up from 4.84 percent at the start of March 2026, and that the average five-year fix was 5.78 percent. Moneyfacts also reported a second wave of fixed-rate increases across major lenders this month. A society repricing its entire fixed range by 0.60 points sits inside that broader pattern rather than outside it.

For borrowers, the practical consequence is that the fixed rate market has been moving upward through September, and the day before an MPC decision is a point when lenders have already absorbed the swap market's view. The unchanged variable and tracker products and the unchanged reversionary rates mean the fixed range is where the repricing is concentrated, and the refreshed longer end dates suggest the society expects the new fixed rates to remain on sale for a longer period than the products they replace.

What to do if you are mid-application

A rate is normally secured when the lender issues an offer, and most lenders honour the rate applied for if the application is submitted before the change. That makes the submission date the key detail for anyone part-way through a Family Building Society application when a repricing lands. The first step is to check the submission date with the broker, because the date the application went in, rather than the date the offer arrives, is usually what determines which rate applies.

Offers typically last three to six months, so a borrower holding an offer has a window in which the rate is protected. Where a product has been withdrawn as part of a repricing, the question to ask is whether the lender will honour it on a resubmission. That is a lender-specific answer rather than a general rule, and it depends on the circumstances of the case and the timing of the original submission. Brokers placing cases with the society have the intermediary notice and can raise the question directly.

Borrowers with a fix ending within six months can usually reserve a new rate now and switch if rates fall before completion. That option matters more when the market has been moving upward, because it allows a borrower to lock in a rate without losing the ability to take a better one if the position changes before the existing deal ends. The mechanics depend on the lender and the product, so the reservation terms need checking rather than assuming.

For anyone not yet at application stage, the comparison work is the same as at any repricing. The headline rate is one input, the product fee is another, and the LTV band determines which rates are available. With the fixed range repriced by 0.60 points and the variable, discount, tracker and reversionary rates unchanged, the decision between fixing and tracking rests on the same trade-off as before, but the cost of fixing has moved. Checking the submission date, the offer window and the fee against the balance is the practical response to a notice of this kind.

Source: Family Building Society intermediary notice, 16 September 2026.

Related coverage on Kael Tripton: Mortgage Rates Are Falling Before the Bank Even Moves: What Was Cut and Whether to Fix, What Are Swap Rates? How They Affect UK Mortgage Rates Explained, How to Remortgage in the UK: Complete Guide to Rates, Costs, Timing and What to Check, Before You Remortgage: Fees, Traps and When It Does Not Pay, Buy-to-Let Mortgage Range Streamlined by Lender.

Frequently asked questions

When did Family Building Society increase its fixed rates?

From Wednesday 16 September 2026, when it repriced and relaunched its Fixed Rate product ranges across Owner Occupier and Buy to Let lending. All fixed rate products increased by 0.60 percentage points and now have refreshed, longer end dates.

Did variable and tracker rates change?

No. No changes were made to variable rate products, meaning discount and tracker deals, or to mortgage reversionary rates. Only the fixed rate range was repriced.

What does a 0.60 percentage point rise add to a monthly payment?

On a 200,000 pound repayment mortgage over 25 years, roughly 70 pounds a month. On a 300,000 pound loan over the same term, about 105 pounds a month.

Why did the repricing happen before the Bank of England decision?

Fixed mortgage rates are priced from swap rates, which move on expectations of future interest rates rather than on the current Bank Rate. The MPC decision was due on 17 September 2026, with Bank Rate at 3.75 percent, and the repricing took effect the day before.

What were the new owner occupier repayment rates?

2 Year Core at 6.14 percent at 60 percent LTV and 6.24 percent at 80 percent LTV; 5 Year Core at 6.09 percent at 60 percent and 6.19 percent at 80 percent with a 999 pound fee; 2 Year JBSP at 6.29 percent at 80 percent and 6.39 percent at 90 percent; 5 Year JBSP at 6.24 percent at 80 percent and 6.34 percent at 90 percent with a 599 pound fee; and the 5 Year Family Mortgage at 6.39 percent at 100 percent LTV with no fee.