Mortgage rates in the UK have risen in May and June 2026, with average two-year fixed rates now above 5% as lenders price in the risk that the Bank of England may hold or raise the base rate at its 18 June 2026 MPC meeting. The base rate has been held at 3.75% since December 2025.
According to data from the HomeOwners Alliance, even the most competitive two-year fixed rate deals available at 60% loan-to-value have risen from 3.63% two months ago to 4.42% at time of writing. Five-year fixed rates have also moved higher, though by a smaller margin.
What is driving mortgage rates higher
Mortgage rates are primarily influenced by swap rates - the rates at which lenders hedge their fixed-rate lending in financial markets. Swap rates have risen in 2026 as inflation proved stickier than expected and the Middle East conflict pushed energy prices higher. Lenders have responded by withdrawing some fixed deals and repricing others upward.
The Bank of England base rate affects standard variable rates (SVRs) and tracker mortgages directly. Fixed mortgage rates are more influenced by market expectations of where rates will be in future. Even if the MPC holds at 3.75% on 18 June, swap rates may continue to move if inflation data or energy prices surprise.
What to do if your fixed deal is ending
Borrowers coming off a fixed deal in the next three to six months can begin comparing and applying for a new rate up to six months in advance. Many lenders allow a rate to be locked in for up to six months with no obligation, which provides some protection if rates rise further before the switch date. The FCA's mortgage broker register at register.fca.org.uk lists authorised brokers who can search the whole market.
Borrowers who cannot access a competitive fixed deal at current loan-to-value may find that a product transfer with their existing lender (switching to a new deal without a full remortgage application) is the most efficient option, though this forfeits access to the wider market.
Related:
For personal finance guides, mortgage rates, insurance comparisons and UK money news visit kaeltripton.com.
This article is for informational purposes only. All facts sourced from publicly available reports at time of publication, 31 May 2026.
Sources: HomeOwners Alliance mortgage rate data, May 2026; Bank of England base rate schedule at bankofengland.co.uk; FCA register at register.fca.org.uk.
