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What the market is doing right now

Recent mortgage market reporting suggests:

  • Lenders have cut some fixed mortgage rates in response to easing swap rates and expectations of future base rate cuts.
  • Average two-year fixed rates are currently around the mid-4% region (e.g., mid-4.8% on Moneyfacts data), and five-year fixed rates are similar.
  • Price movements depend on the lender and your loan-to-value (LTV) — borrowers with larger deposits often get better deals than those putting down smaller ones.

These figures are approximate and market–wide indicators, not specific offers available to every borrower.

Why rates are where they are

Mortgage pricing isn’t determined solely by the Bank of England’s base rate. Instead:

  • Lenders use swap rates — financial market expectations of future interest rates — when setting mortgage deals.
  • Even after the base rate was cut late in 2025 and then held at 3.75%, swap rates and inflation expectations have influenced lenders’ pricing.
  • Some economists anticipate further base rate cuts later in 2026, but markets have already priced much of that expectation into deals.

As a result, although headline rates are lower than at the peak of market stress, they’re still substantially above the ultra-low levels seen before 2021.

What this means for your mortgage search

If you’re currently in the market for a mortgage or remortgage:

Deals vary widely by profile

  • Lenders may offer lower rates to borrowers with higher deposits and stronger credit histories.
  • Deals in the mid-4% range (e.g., two- and five-year fixes) may be available for certain profiles, but exact rates depend on your circumstances.

Timing matters

  • Some borrowers hoping for further rate cuts may choose shorter fixed terms to retain flexibility if rates do fall.
  • Others nearing the end of a fixed deal may prioritise stability over chasing small market moves.

Rates and availability change frequently, so what’s cheapest today may not be tomorrow.

If you’re nearing the end of a deal

Many lenders offer remortgage deals at competitive pricing to retain customers, and staying with your current lender can sometimes offer a smoother process than switching entirely.

Remember: the definition of “best rate” varies by individual profile, and your actual offer may differ from headline listings.

What to do next

If you’d like to understand what mortgage rates lenders could offer based on your circumstances (income, deposit size, credit profile, property value), you can request mortgage quotes to explore options.

(This provides information about potential rates and terms — it isn’t financial advice or a recommendation.)