Last reviewed: 9 October 2026 | Reviewed by Team of Advisers, Wiser Mortgage Advice
Key takeaways
- Bank Rate is currently 3.75%, but fixed mortgage rates can move independently because they are also influenced by swap rates and market expectations.
- According to Moneyfacts, the average two-year fixed rate reached 5.98% and the average five-year fix reached around 6% in early October 2026.
- The rate you get depends on your deposit, loan-to-value (LTV), credit history, income and the lender you choose.
- When comparing mortgage deals, look at the total cost, including fees and monthly payments, rather than just the headline interest rate.
The Bank of England’s Bank Rate is currently 3.75%. It was held at this level on 17 September 2026, although the vote was split 6 to 3, with three members voting for an increase to 4%. The next decision is due on 5 November.
If you’re looking at mortgage rates because you’re planning to buy a property or remortgage, Bank Rate is only part of the picture. The rate you’re offered will depend on your circumstances, the lender, your deposit and the type of mortgage you choose.
I’ve covered where UK mortgage rates stand, what’s affecting them, what to look at when comparing deals and when it may be worth speaking to a mortgage adviser rather than relying on comparison sites alone.
Mortgage rates today: why there isn’t one single number
If you search for mortgage rates today, you’ll probably see several different figures. That’s because there isn’t one rate that applies to everyone.
Lenders regularly update their mortgage deals, sometimes more than once a week when market conditions change. A deal available at the start of the week might be withdrawn or repriced a few days later.
Even when two mortgages have the same interest rate, they might not be the same deal. For example, a two-year fix at 5.5% with a 25% deposit is different from a two-year fix at the same rate with only a 5% deposit. The fees, eligibility criteria and other terms may also be different.
This is why I wouldn’t rely on a rate quoted in an old news article or comparison table when working out what you can afford. It gives you an idea of the market, but it doesn’t tell you what a lender will actually offer you.
Generally, borrowers with larger deposits, lower LTVs, good credit histories and straightforward income have access to more competitive rates. If you have a smaller deposit or a more complicated application, your options may be different.
Current mortgage rates UK: what’s affecting them?
There are three main things worth keeping an eye on.
Bank Rate
The Bank of England has kept Bank Rate at 3.75%, following its September 2026 decision. This has a direct effect on many tracker mortgages and can influence variable rates, although lenders don’t necessarily change every variable product in the same way.
Fixed mortgage rates work differently, so they don’t automatically fall or rise whenever Bank Rate changes.
Swap rates
Swap rates are one of the main factors lenders consider when pricing fixed-rate mortgages. They reflect market expectations about future interest rates, alongside lenders’ funding costs, competition and other commercial factors.
This helps explain why fixed mortgage rates can rise even when the Bank of England hasn’t changed Bank Rate. Lenders are also responding to what they expect to happen next.
Energy prices and inflation
Inflation is another factor to watch. According to the Office for National Statistics’ inflation data, UK CPI inflation was 3.1% in the 12 months to August 2026.
The Bank of England has also highlighted the Middle East conflict and higher energy costs as risks that could put further pressure on inflation. Its Financial Stability Report estimated that average two-year fixed mortgage rates had increased by around 0.8 percentage points since the conflict began.
Where mortgage rates stand in October 2026
According to Moneyfacts’ mortgage rate update, the average two-year fixed rate reached 5.98% on 5 October 2026, while the average five-year fixed rate reached around 6%.
These are market averages, not necessarily the rates available to you. Your own options will depend on your deposit, LTV, credit profile, income and the lenders willing to consider your application.
The next Bank of England decision is due on 5 November. Nobody can say with certainty what will happen. Rather than trying to predict every move, I think it’s more useful to look at what you can afford and which type of mortgage makes sense for your circumstances.
Mortgage interest rates explained
Before comparing deals, it helps to understand the main types of mortgage available.
Fixed-rate mortgage
Your interest rate stays the same for an agreed period, usually two or five years. This makes your monthly payments more predictable and can help with budgeting.
The main thing to consider is flexibility. If you need to leave the mortgage before the deal ends, you may have to pay an early repayment charge.
Tracker mortgage
A tracker usually follows Bank Rate at a set margin above or below it. If Bank Rate changes, your mortgage rate and monthly payments can change too.
Some tracker mortgages don’t have early repayment charges, which may be useful if you think you might move or switch deals. You’ll need to check the terms of the specific product.
Discount variable mortgage
This type of mortgage gives you a discount against the lender’s standard variable rate (SVR). The SVR is controlled by the lender, so your interest rate can change even if Bank Rate stays the same.
Standard variable rate (SVR)
This is the rate many borrowers move onto when their existing mortgage deal ends, and they don’t arrange another one.
An SVR can be considerably higher than other deals available to you. That’s why it’s worth reviewing your options before your current mortgage deal finishes rather than simply allowing it to roll over without checking.
What do mortgage rates mean for your monthly payments?
Let’s look at a £200,000 repayment mortgage over 25 years.
| Interest rate | Approximate monthly payment |
| 4% | £1,056 |
| 5% | £1,169 |
| 6% | £1,289 |
As you can see, a one percentage-point difference can change your monthly payment by more than £100 on a mortgage of this size.
Over a five-year period, that difference can add up to several thousand pounds. It’s worth comparing your options properly before deciding which deal to take.
These figures are illustrative and assume a capital-and-interest repayment mortgage over 25 years. Actual payments will depend on the mortgage amount, term, rate and fees.
How to compare mortgage rates properly
When comparing mortgage deals, it’s easy to focus on the interest rate because that’s usually the first figure you see. But it doesn’t tell you the full story.
Here are the main things I’d look at before deciding whether a deal is worth considering.
Product fees
Some mortgages have a lower interest rate but come with a substantial product fee. For example, a deal with a £1,999 fee could work out more expensive than a slightly higher rate with no fee, particularly if you’re borrowing a smaller amount.
Compare the total cost over the deal period. If the fee can be added to the mortgage, remember that you’ll also pay interest on it.
Loan-to-value (LTV)
LTV is the mortgage amount compared with the property’s value. Lenders often offer different rates at different LTV bands, such as 90%, 85%, 75% and 60%.
If you’re close to one of these thresholds, it may be worth checking whether a larger deposit or a change in the amount you borrow could give you access to a better deal.
Early repayment charges
An early repayment charge can apply if you leave a mortgage during a specified period.
This might not be a problem if you expect to stay in the property and keep the mortgage for the full term of the deal. However, if your plans could change, it’s worth understanding the potential cost before committing.
How long you need the deal for
A five-year fix might suit someone who wants payment certainty for longer. If you think you may move in two or three years, you might want to consider a shorter deal or a portable mortgage.
Portability can help when moving home, but it doesn’t guarantee that your existing mortgage will transfer automatically. The lender will normally assess your circumstances and the new property.
Total cost over the deal period
This is one of the most important things to compare.
Look at the monthly payments and add any product fees and other relevant costs over the period you’re considering. A mortgage with the lowest interest rate isn’t always the cheapest overall.
Incentives and additional benefits
Some deals include cashback, free valuations or free legal work. These can be useful, but it’s still worth checking the underlying rate and total cost.
A comparison site can help you see what’s available, but it won’t necessarily tell you which lender is most suitable for your circumstances. That’s where speaking to a mortgage adviser can help.
Best mortgage rates UK: which deal is right for you?
The lowest mortgage rate advertised online isn’t necessarily the best deal for you.
Many of the most competitive rates are aimed at borrowers who have larger deposits and meet the lender’s criteria. If you’re self-employed, have a smaller deposit, a complicated income structure, or a non-standard property, your options may be different.
This doesn’t mean you won’t be able to find a suitable mortgage. It means you may need to look beyond the headline rates and consider which lenders are prepared to assess your application.
For example:
- First-time buyers with a 5% or 10% deposit may need to focus on lender criteria and affordability as well as the interest rate.
- Self-employed applicants may find that lenders assess their income differently. One lender’s decision doesn’t necessarily mean another will reach the same conclusion.
- If you’re coming to the end of a low fixed-rate deal, your new monthly payment could be higher. Looking at your options four to six months before the deal ends gives you more time to compare mortgages and understand the costs.
The main thing is to find a deal that fits your circumstances, rather than choosing one simply because it has the lowest advertised rate.
Should you fix your mortgage now or wait?
This is probably one of the biggest questions for anyone looking at mortgage rates at the moment.
There’s no single answer that works for everyone. It depends on your budget, how long you expect to keep the mortgage, and how comfortable you are with the possibility of your payments changing.
Can you afford a higher monthly payment?
If an increase of a few hundred pounds a month would put pressure on your finances, having a fixed rate may be worth considering because it gives you more certainty over your payments during the deal period.
Do you need flexibility?
If you’re planning to move, make substantial overpayments or change your mortgage in the near future, check whether a tracker or another flexible product would suit you better. Just remember that a tracker can become more expensive if Bank Rate rises.
Can you secure a rate in advance?
Many lenders allow borrowers to arrange a new deal several months before their existing mortgage ends. Depending on the lender, you may also have the option to switch to a better rate before the new deal starts if rates fall.
The terms vary, so it’s worth checking what options are available rather than assuming every lender works in the same way.
Personally, I wouldn’t base the decision entirely on trying to guess where rates will be in a few months. I’d look at the available deals, the total cost, and whether the payments would remain manageable if circumstances changed.
Mortgage rates for West Midlands buyers and homeowners
Mortgage rates are influenced by national market conditions, but the right mortgage for you still depends on your own circumstances and the property you’re buying.
Property type, valuation, affordability and lender criteria can all affect which deals are available to you.
Wiser Mortgage Advice has branches across the West Midlands, so you can speak to an adviser about your options in person or by phone.
Whether you’re buying your first home or coming to the end of your current mortgage deal, getting advice early can give you more time to understand the available options.
Frequently asked questions
What are mortgage rates in the UK right now?
There isn’t one mortgage rate that applies to everyone. Bank Rate is currently 3.75%, while Moneyfacts reported an average two-year fixed rate of 5.98% and an average five-year fixed rate of around 6% on 5 October 2026.
These are market figures, not personalised quotes. The rate available to you will depend on the lender, deposit, LTV, credit history and other circumstances.
Why are mortgage rates going up when the Bank of England has held rates?
Fixed mortgage rates are influenced by swap rates, market expectations and lenders’ funding costs. If markets expect inflation to remain high or interest rates to rise, lenders may increase their fixed rates even when the Bank Rate hasn’t changed.
This is why it’s worth looking at actual mortgage deals rather than assuming fixed rates will fall whenever the Bank of England holds its rate.
Will mortgage rates go down?
Nobody can say for certain. Mortgage rates depend on inflation, market expectations, Bank of England decisions and lenders’ pricing.
If you’re approaching the end of your current deal, it’s worth reviewing your options early. You may be able to secure a rate in advance, depending on the lender, and review the available alternatives before your new deal starts.
What is loan-to-value (LTV)?
LTV is the mortgage amount expressed as a percentage of the property’s value.
For example, if you’re borrowing £180,000 against a property worth £200,000, your LTV is 90%.
A lower LTV can give you access to more competitive mortgage rates, although the actual deal will also depend on the lender and your circumstances.
How do I compare mortgage rates properly?
Don’t look at the interest rate alone. Compare product fees, monthly payments, early repayment charges and the total cost over the deal period.
You should also check that the lender’s criteria match your income, credit history and property type. A mortgage with a slightly higher rate but no product fee could work out cheaper overall.
Is a fixed or tracker mortgage better at the moment?
Neither is automatically better for everyone.
A fixed mortgage gives you more certainty over your payments during the deal period. A tracker follows the Bank Rate, so your payments can rise or fall. Some trackers also offer more flexibility around early repayment charges.
The right option depends on your budget, plans and how comfortable you are with changes in monthly payments.
How much does a 1% change in mortgage rates affect my monthly payment?
On a £200,000 repayment mortgage over 25 years, the monthly payment would be approximately £1,056 at 4%, £1,169 at 5% and £1,289 at 6%.
That’s a difference of around £110 to £120 a month for each percentage-point change at this loan size. The actual difference will depend on the mortgage amount and remaining term.
When should I start looking for a remortgage deal?
It’s generally worth starting around four to six months before your current deal ends.
Many lenders allow you to secure a new rate in advance. Starting early gives you time to compare your options and understand the costs without leaving everything until the last few weeks.
Talk to a Wiser adviser
If you’re comparing mortgage rates and want to understand what’s realistically available for your situation, speak to one of our advisers.
We can help you compare the options, explain the differences between rates and fees, and look at which type of mortgage may suit your circumstances. If you’re approaching the end of your current deal, it’s worth reviewing your options early rather than leaving it until the last minute.
It’s also worth considering mortgage protection alongside your mortgage, so you can understand what protection may be available if your circumstances change.
Book a free mortgage consultation | Contact your nearest branch
Your home may be repossessed if you do not keep up repayments on your mortgage.
Wiser Mortgage Advice is authorised and regulated by the Financial Conduct Authority (FCA reference number 969681). You can check the details on the FCA Register.
This article provides general information and does not constitute personal mortgage advice. Mortgage rates and lender criteria can change frequently, and all applications are subject to lender assessment and approval.