UK Mortgage Rates Update

What's moving

• The Bank of England held the base rate at 3.75% at its 30 July 2026 meeting, on a 6–3 vote — three members (Megan Greene, Catherine Mann and Huw Pill) preferred a 0.25 percentage point rise to 4.00%. The rate has been unchanged since the move that took effect in Dec 2025.
• Average 2-year fixed rates sit around 5.63% and 5-year fixes around 5.68% as at 7 September 2026 (Moneyfacts data). This is the market-wide average across all LTV tiers; headline "from" rates at lower LTVs sit below it.
• Mainstream best-buy 2 and 5-year fixed rates are broadly in the 4.3–4.6% range depending on LTV — nothing has priced below 4% since February; trackers commonly price at base + 0.5–1.5%.
• Lender stress rates remain around 7–8.5% for residential affordability, keeping a buffer above product rates.

Should I fix or wait?

With the base rate on hold and market expectations having shifted away from an early cut, the case for a 2-year fix is flexibility rather than a cheaper headline rate. 5-year fixes lock in today's pricing but tie you in if rates fall further. Use our 2-vs-5-year live comparison tool to see which is cheaper for your specific loan size.

Lock now or wait for the next MPC decision?

The MPC last held Bank Rate at 3.75% on 30 July 2026, on a 6–3 vote — three members preferred a rise to 4.00%, one more hawkish dissent than in June. The next scheduled decision is 2026-09-17. Nobody can say in advance what the MPC will decide, but here is what each outcome would generally mean, and how the timing mechanics work regardless of the decision:

• If Bank Rate is held: no direct change to swap rates, though lenders may continue repricing fixed deals independently of the base rate — as they did in mid-July, when average fixed rates fell to 5.52%.
• If Bank Rate is cut: swap rates and fixed-rate pricing would typically be expected to fall further, all else equal, though lenders often price in an anticipated cut before it happens.
• If Bank Rate is raised (as three MPC members preferred in July): fixed-rate pricing would typically be expected to firm up or rise, all else equal.

On timing mechanics: most lenders let you reserve a product-transfer or new-purchase rate 3–6 months before completion or before your current deal ends. If you lock a rate and the lender's pricing then falls before you complete, most lenders will let you switch to the lower rate on request — this varies by lender, so check your offer terms or ask your broker. Locking early protects you if rates rise in the meantime; it doesn't guarantee you the lowest possible rate if they keep falling. See our should I fix for 2 or 5 years comparison for the total-cost trade-off.