Current Mortgage Rate Landscape
As we move through 2026, the UK mortgage market continues to evolve. After the volatility of recent years, we're seeing more stability in mortgage rates, though they remain higher than the historic lows we saw pre-2022.
What's Happening with the Base Rate?
The Bank of England base rate currently sits at around 4.25%, having gradually decreased from its 2023 peak. Most economists predict it will stabilise in the 4-4.5% range throughout 2026, with potential for modest decreases if inflation remains controlled.
Don't wait for rates to drop significantly - the difference between a 4.5% and 4% rate on a £250,000 mortgage is about £70/month. If waiting costs you 6 months on a higher rate, you've already lost the benefit.
Fixed Rate Predictions
Two-year fixed rates are currently averaging around 5.2-5.5%, while five-year fixes sit at 4.8-5.1%. Competition among lenders is increasing, which is pushing rates down.
Our Advice
Mortgage rates are unlikely to return to the sub-2% levels we saw a few years ago anytime soon. Rather than waiting for a perfect moment that may never come, focus on finding the best available rate for your circumstances today. As whole-of-market brokers, we can search 90+ lenders to find you the most competitive deal.