TL;DR
Santander cut selected residential and buy-to-let mortgage rates by up to 50 basis points from 11 May 2026. Halifax cut remortgage fixed rates by up to 25 basis points. The best 5-year fixed purchase rate available as of 12 May 2026 is HSBC at 4.49% with a £999 fee. Approximately 1.8 million UK fixed-rate mortgages are due to mature in 2026 according to UK Finance.
The week beginning 11 May 2026 brought a wave of mortgage rate reductions from major UK lenders, with Santander leading the move. Santander cut selected residential and buy-to-let fixed, tracker, and product transfer rates by up to 50 basis points effective from Monday 11 May 2026, while also raising a single two-year fixed first-time buyer deal at 85% loan-to-value (LTV) by 5 basis points.
Halifax followed with cuts of up to 25 basis points on remortgage two, three, and five-year fixed rates, alongside reductions of up to 24 basis points on product transfer and further advance two and five-year fixes. Cambridge Building Society relaunched five-year fixed buy-to-let products for limited company, expat, and holiday let borrowers up to 80% LTV. Vida Homeloans reintroduced 20 residential products and relaunched its buy-to-let range.
Context: where rates were before May
The cuts come from a starting point well above where the market sat at the end of February 2026. The current two-year fixed average of 5.78%, as reported by Moneyfacts data on 1 May 2026, compares with 4.84% on 6 March 2026, before swap rates jumped on the back of the Middle East energy shock. The five-year average of 5.68% compares with 4.96% over the same window.
The pattern of the past three weeks has been one of selective rather than sweeping reductions. The first wave of post-conflict cuts in mid-April saw a number of large high street lenders reduce selected products by between 20 and 45 basis points. Subsequent weeks have seen smaller, more targeted moves rather than a single market-wide reset.
Best buy rates as of 12 May 2026
Based on L&C data published 11 May 2026, on a £200,000 repayment mortgage over 30 years:
| Product | Lender | Rate | Fee |
|---|---|---|---|
| 5-year fixed (purchase) | HSBC | 4.49% | £999 |
| 3-year fixed (purchase) | TSB | 4.64% | £995 |
| 2-year fixed (remortgage) | Bank of Ireland | 4.69% | £1,495 |
| 2-year variable (purchase) | Halifax | 3.96% | £1,599 |
| 10-year variable (purchase) | First Direct | 4.55% | £490 |
Variable and tracker rates remain volatile relative to the Bank of England base rate, which was held at 3.75% on 30 April 2026. Standard variable rates (SVRs) typically reprice annually or on the announcement of base rate changes and remain close to 8% across major lenders.
What is driving the May cuts
Swap rates, the financial benchmarks lenders use to price fixed-rate mortgages, drove much of the volatility in March and April 2026 and have eased modestly since the late-April Bank of England decision. The MPC voted 8-1 to hold Bank Rate at 3.75% on 30 April 2026, with one member voting for a 0.25 percentage point increase to 4%. The hold matched market expectations.
What is making the current cut wave fragile is that swap rates have not collapsed back to pre-conflict levels. The cuts of the past three weeks reflect lenders trimming margins where competitive pressure is sharpest, not a wholesale repricing on the back of cheaper funding. If swap rates drift higher again on stronger energy or inflation data, the May cuts could slow or reverse rather than build into a sustained downtrend.
The 1.8 million remortgage cliff
Approximately 1.8 million UK fixed-rate mortgages are due to come to an end in 2026, according to UK Finance. Most of those borrowers originally fixed at rates well below current pricing during 2021 and the first half of 2022. Even with the recent cuts, the typical remortgage will land at a higher rate than the expiring deal, meaning a meaningful monthly payment increase for most households.
For a £200,000 repayment mortgage over a 25-year term, moving from a 2.0% fix to a 4.49% fix lifts the monthly payment from £847 to £1,113, an increase of £266 a month. The same move to a 5.0% rate produces a monthly payment of £1,169, £322 more than the original. Households facing this transition should typically begin shopping for a new deal up to six months before the existing fix ends, and many lenders permit rate reservation that long in advance.
Fix versus tracker decision
The fix versus tracker decision in May 2026 hinges on a view about where Bank Rate moves next. The Monetary Policy Committee is next scheduled to meet on 18 June 2026. Market pricing as of mid-May 2026 implies one further base rate cut over the remainder of 2026, with the probability of any further cuts heavily dependent on inflation and energy market data.
Tracker mortgages move in step with the base rate plus a margin and offer the upside of automatic rate falls if cuts materialise. They expose the borrower to upside risk if rates rise. Fixed rates provide budgeting certainty but lock the borrower in for the fix period, typically with exit fees of 1% to 5% of the loan balance if the borrower wants to leave early.
Editorial disclaimer: Your home may be repossessed if you do not keep up repayments on your mortgage. Mortgage rates change frequently and the figures cited reflect availability on 11 to 12 May 2026. Anyone considering a mortgage decision should consult an FCA-regulated mortgage adviser.
Frequently asked questions
Are mortgage rates going down in May 2026?
Selected fixed mortgage rates fell during the week of 11 May 2026 following moves by Santander, Halifax, and Cambridge Building Society. The reductions are targeted rather than market-wide, and swap rate volatility means further moves in either direction are possible.
What is the best 5-year fixed mortgage rate today?
According to L&C data published 11 May 2026, the best 5-year fixed rate for purchase is from HSBC at 4.49% with a £999 fee, based on a £200,000 repayment mortgage over 30 years.
When is the next Bank of England base rate decision?
The next Monetary Policy Committee meeting is on 18 June 2026. The Bank of England held the base rate at 3.75% on 30 April 2026 in an 8-1 vote.
Should I lock in a fix before swap rates move again?
Locking in protects against further rises if swap rates drift higher. It also exposes the borrower to opportunity cost if rates fall. Mortgage brokers typically allow rate reservation up to six months ahead of an existing fix expiry, providing some optionality.
How much higher will my remortgage be in 2026?
For borrowers coming off 2021 or 2022 fixes at around 2%, current remortgage rates near 4.5% to 5% imply monthly payment increases of approximately £250 to £325 on a £200,000 mortgage over 25 years.
How we verified
This article draws on Moneyfacts published average rate data from 1 May 2026, L&C best-buy data published 11 May 2026, Mortgage Introducer weekly product change summaries for the week ending 8 May 2026, Bank of England Monetary Policy Committee announcements (30 April 2026), and UK Finance published estimates of 2026 mortgage maturities. Payment calculations use standard repayment mortgage formulae assuming no fees added to the loan.
