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UK mortgage rates spent much of early 2026 flirting with the psychologically important 5% barrier. Then the Middle East conflict changed everything. Here's the current state of play — and where sub-5% deals still exist. Updated April 2026 Where Sub-5% Mortgage Rates Still Exist
Sub-5% rates still exist — but they are increasingly reserved for borrowers with substantial deposits and excellent credit histories. The best deals at 90-95% LTV are now firmly above 5.5%, with some lenders quoting 5.99% for borrowers with small deposits. What's Changed Since January 2026At the start of 2026, mortgage rates were on a steady downward path. The average 2-year fix stood at 4.83% in January. Lenders were competing aggressively, trimming rates to attract borrowers. Then in March, the Middle East conflict erupted — and the picture reversed sharply. The average 2-year fix has risen from 4.83% in January to 5.56% in April 2026 — a jump of 0.73 percentage points in just three months. On a £250,000 mortgage over 25 years, that translates to roughly £100 more per month in repayments. The 1.8 Million Remortgaging in 2026According to UK Finance, 1.8 million fixed-rate mortgages are expiring in 2026 — many locked in at historically low rates of 1-2% fixed during 2021-22. These borrowers face a payment shock even on the best available rates. Someone remortgaging a £300,000 loan from 1.5% to 5.5% faces an extra £850/month in payments. Should You Wait for Rates to Fall?Waiting is a gamble. The Middle East conflict has introduced genuine uncertainty. Before it started, two Bank of England rate cuts were widely predicted for 2026 — now two rate hikes are being priced in by markets. If you're on an SVR or your deal is ending soon, the cost of waiting could exceed any benefit from rates falling later. KAELTRIPTON VERDICT
Sub-5% rates still exist for those with 25%+ deposits, but they are disappearing fast. If you're remortgaging, act now rather than waiting for rates to fall — the risk is firmly to the upside in April 2026.
Rating: ★★★★☆ Act Promptly Q: Are mortgage rates below 5% in the UK? A: Yes — the best 5-year fixed rates are still available below 5% for those with large deposits. Allied Irish Bank offers 4.35%. Q: Why are UK mortgage rates rising again in 2026? A: The Middle East conflict has pushed oil prices to $112/barrel, stoking inflation fears and causing lenders to hike rates. Q: How can I still get a mortgage below 5%? A: You need a deposit of at least 25-40% (60-75% LTV) and a strong credit score. Q: Will UK mortgage rates fall below 4% in 2026? A: Unlikely. Before the conflict, sub-4% rates were being forecast for late 2026. Those predictions have been shelved. Related Articles This article is for informational purposes only and does not constitute financial advice. Mortgage rates change daily. Always consult a qualified mortgage broker before making decisions. Your home may be repossessed if you do not keep up repayments. |
UK Mortgage Rates: Are They Still Below 5% — And Where to Find Them
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