Mortgage rates have fallen from their 2023 peaks but remain well above pre-2022 levels. Here’s where rates stand, where they’re heading, and whether to fix for 2 or 5 years.
After the dramatic rate rises of 2022 and 2023, UK mortgage rates have been gradually falling. But with the Bank of England base rate still at 4.25% and economic uncertainty remaining, millions of homeowners face a difficult decision: fix now, or wait and hope rates fall further?
This guide sets out where rates are, what the experts expect, and how to think about the fix vs track decision for your own circumstances.
| Mortgage type | Typical rate range | Best available |
|---|---|---|
| 2-year fixed (60% LTV) | 4.0%–4.4% | ~3.9% |
| 2-year fixed (75% LTV) | 4.2%–4.6% | ~4.1% |
| 2-year fixed (90% LTV) | 4.6%–5.1% | ~4.5% |
| 5-year fixed (60% LTV) | 3.9%–4.3% | ~3.8% |
| 5-year fixed (75% LTV) | 4.1%–4.5% | ~4.0% |
| 5-year fixed (90% LTV) | 4.5%–5.0% | ~4.4% |
| Tracker (base rate + margin) | 4.5%–5.0% | Base + 0.15% |
| Standard variable rate (SVR) | 6.5%–7.5% | N/A |
Rates are meaningfully lower than their late-2023 peak when 2-year fixes were touching 6.5% for many borrowers. However they remain roughly double the rates available before 2022, when 2-year fixes below 2% were common.
The Bank of England base rate is currently 4.25%, having been cut gradually from its 16-year high of 5.25% which held through much of 2023 and 2024. The base rate directly influences tracker mortgages and savings rates, and indirectly influences fixed rate mortgage pricing through swap rates.
Fixed mortgage rates are primarily driven by swap rates — the rates at which banks lend to each other over fixed periods. Swap rates reflect market expectations of future base rate movements. When markets expect the base rate to fall, swap rates fall and fixed mortgage rates follow — sometimes before the base rate itself moves.
Market expectations as of May 2026 suggest the Bank of England will cut rates further during 2026 and into 2027, with the base rate potentially reaching 3.5%–3.75% by end of 2027. However, these are market expectations — not guarantees — and inflation data or global economic shocks can change the picture quickly.
If rate cut expectations materialise:
A tracker mortgage follows the Bank of England base rate plus a fixed margin. If the base rate is 4.25% and your tracker is “base rate plus 0.25%”, you pay 4.5%. When the base rate falls to 3.75%, you pay 4.0% automatically — with no remortgaging needed.
Trackers currently sit at roughly 4.5%–5.0% — higher than the best fixed deals. They make sense if:
Most trackers have no early repayment charges, which is valuable if you might want to switch to a fixed deal when rates change.
If your fixed deal has ended and you have drifted onto your lender’s standard variable rate (SVR), you are almost certainly paying too much. SVRs currently sit at 6.5%–7.5% — far above the best available fixed rates.
On a £250,000 mortgage, the difference between 7% SVR and 4.5% fixed is approximately £327 per month — nearly £4,000 per year. Remortgaging takes 4–8 weeks and typically costs £1,000–£2,000 in fees. You recover those costs within 3–6 months of lower payments.
See how much you save by switching to a lower rate or overpaying
For most people remortgaging or buying now, a 5-year fixed rate makes the most sense. Rates are lower than 2-year equivalents, you get 5 years of certainty, and you avoid the cost and hassle of remortgaging in just 2 years. The difference in rates between a 2 and 5-year fix is small — typically 0.1%–0.3% — and the certainty is worth more than the modest saving from a 2-year deal. If you are on SVR, remortgage immediately regardless of which product you choose — the savings are too large to delay.