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Part of our UK mortgage rates guide. See the main pillar for the full lender comparison, FRN-verified best buys by LTV band and worked-example payments: Best Mortgage Rates UK 2026. |
Mortgage rate predictions for 2026UK mortgage rates are expected to fall gradually through 2026 as the Bank of England continues its rate-cutting cycle. However, the pace of cuts is uncertain and rates are unlikely to return to the ultra-low levels seen before 2022. The consensus among major lenders and economists as of April 2026 is that the base rate will reach 3.75% to 4.25% by end 2026. Bank of England base rate: 4.25% in April 2026. Forecasters expect further cuts to 3.75% to 4.25% by end of 2026. Two-year fixed mortgage rates currently average 4.2 to 4.5%. Base rate forecast 2026
Sources: Bank of England Monetary Policy Committee projections, Goldman Sachs, Capital Economics, April 2026. Forecasts are subject to change. What is driving rate expectations?
Should you fix your mortgage now or wait?
Will mortgage rates go below 4% in 2026?Some lenders are already offering sub-4% five-year fixes for borrowers with large deposits (40% or more). Rates below 4% for standard borrowers (75 to 80% LTV) are possible by late 2026 if the base rate falls to 3.75%, but are not guaranteed. Two-year fix rates are less likely to drop below 4% until 2027. Verdict Rates falling — but slowly and not to pre-2022 levels Mortgage rates are on a downward trajectory but cuts will be gradual. If certainty matters, fix now. If you believe rates will fall faster than expected, a short tracker buys optionality. Either way, avoid staying on an SVR — the cost is significant. Frequently asked questionsWhat will mortgage rates be in 2026 UK? The consensus as of April 2026 is that two-year fixed rates will range from 3.9 to 4.5% through 2026, with some improvement by year-end if the Bank of England cuts as expected. Five-year fixes may fall below 4% for strong LTVs. Will mortgage rates go down in 2026? Yes — modestly. The Bank of England is expected to cut rates further through 2026, which will gradually reduce fixed mortgage rates. The pace of cuts is uncertain and depends on inflation data. Should I fix for 2 or 5 years in 2026? A 2-year fix gives flexibility to remortgage if rates fall further. A 5-year fix offers certainty and is often cheaper than a 2-year fix currently. Your choice depends on your risk tolerance and plans for the property. What is the lowest mortgage rate available in April 2026? The lowest publicly available rates in April 2026 are approximately 3.8 to 3.9% for 5-year fixes at 60% LTV. Standard borrowers at 75 to 80% LTV are seeing the best rates at approximately 4.0 to 4.2%. |
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