Research checked: 31 October 2026 | Country: United Kingdom | Currency: pounds sterling (£)
For a UK homebuyer, the difference between two mortgage deals is not only the interest rate. Product fees, deposit size, loan-to-value ratio, early-repayment charges and the time you expect to stay in the home can all affect the real cost. A deal with the lowest headline rate may not be the cheapest option once the fees are included.
If you are looking for mortgage rates UK, current comparison data gives a useful dated reference. Rightmove’s UK mortgage update on 27 October 2026 showed average rates of 5.52% for a two-year fixed mortgage and 5.50% for a five-year fixed mortgage, using a dataset provided by Podium and products with a fee of about £999. Moneyfacts’ October 2026 table showed different averages depending on loan-to-value: at 60% LTV, its average two-year fixed rate was 5.42% and five-year fixed rate was 5.60% on 1 October.
The values differ because the sources use different dates, samples and product definitions. This article explains those differences in easy English and shows how to compare a UK mortgage without relying on one number alone.
Quick Answer: UK Mortgage Rates
Moneyfacts’ latest snapshot on 30 October 2026 showed average fixed rates of 5.97% for two years and 6.00% for five years. It also showed best listed deals of 4.90% and 4.91% at 60% LTV. A best-buy deal is not the same as a market average and may include fees and eligibility conditions.
Updated 31 October 2026. Moneyfacts’ snapshot updated at 10:00 GMT on 30 October showed average UK fixed rates of 5.97% for two years and 6.00% for five years. Its lowest listed deals at 60% loan-to-value were 4.90% for two years and 4.91% for five years. The lowest rates have product fees and eligibility rules, so they are not the same as the average rate or a guaranteed offer.
Key Takeaways
- Moneyfacts’ 30 October average: 5.97% for a two-year fix and 6.00% for a five-year fix.
- Lowest listed 60% LTV deals: 4.90% for two years and 4.91% for five years, each with a product fee.
- A 60% LTV mortgage usually requires a deposit or equity of about 40% of the property value.
- Compare fees, incentives, early repayment charges and the full monthly cost—not just the headline rate.
- Your personal rate depends on the lender, credit profile, deposit, property and loan details.
For help with mortgage terms, read our mortgage rates meaning guide. You can also compare the historical mortgage-rate chart and mortgage-rate outlook.
| Source / borrower profile | Two-year fixed average | Five-year fixed average | Date |
|---|---|---|---|
| Moneyfacts UK average fixed rate | 5.97% | 6.00% | 30 Oct 2026 |
| Moneyfacts lowest listed deal, 60% LTV | 4.90% (Yorkshire Building Society; £1,495 fee) | 4.91% (Santander; £1,499 fee) | 30 Oct 2026 |
| Rightmove / Podium average | 5.52% | 5.50% | 27 Oct 2026 |
| Moneyfacts, 60% LTV | 5.42% | 5.60% | 1 Oct 2026 |
| Moneyfacts, 75% LTV | 5.80% | 5.89% | 1 Oct 2026 |
| Moneyfacts, 85% LTV | 6.00% | 5.97% | 1 Oct 2026 |
| Moneyfacts, 95% LTV | 6.37% | 6.30% | 1 Oct 2026 |
Sources: Moneyfacts fixed-rate mortgage comparison (updated 30 October 2026) and Rightmove’s 27 October 2026 mortgage update. The providers use different samples and methods, so their averages are not directly interchangeable. Always check the source date, LTV and product fee.
Contents
- Types of UK mortgages
- Deposit size and loan-to-value
- Rates, fees and total cost
- What moves UK mortgage rates?
- Example monthly payments
- Switching or remortgaging
- Mortgage calculator
- FAQs
1. Fixed, Tracker and Standard Variable Rate Mortgages
Fixed-rate mortgage
A fixed-rate deal keeps the interest rate unchanged for a set period, commonly two or five years, although other periods are available. The monthly payment for capital and interest can usually be planned with greater certainty during the fixed period. This may help a household budget, especially when costs are already high.
At the end of the fixed period, the mortgage does not usually finish. Instead, the borrower moves to another rate, often the lender’s standard variable rate (SVR), unless they select a new deal. The new rate could be lower or higher than the old one. Plan for the end date rather than assuming the current deal will continue.
Tracker mortgage
A tracker mortgage follows a stated reference rate, often the Bank of England Bank Rate, plus or minus a lender’s margin. When the reference rate changes, the mortgage rate may change according to the contract. A tracker can become cheaper when the reference rate falls, but payments or interest costs can rise when it increases.
Check whether the deal includes a floor, collar, fees or early-repayment charges. The starting rate may look attractive, but the borrower needs a plan for payments if the reference rate moves up.
Standard variable rate (SVR)
An SVR is a lender’s variable rate that may apply after a fixed or tracker deal ends. It is not necessarily the same as the Bank of England Bank Rate. A lender may change its SVR based on its own pricing decisions and other costs, subject to the contract and applicable rules.
Borrowers often compare new fixed or tracker deals before reaching the SVR because the SVR can be more expensive than a competitive product. However, switching is not always free and may involve valuation, legal, product or early-repayment costs.
2. How Your Deposit Affects Mortgage Rates
UK lenders often quote rates by loan-to-value ratio (LTV). LTV compares the amount borrowed with the property’s value. If a home is worth £300,000 and the mortgage is £240,000, the LTV is 80%. A larger deposit usually reduces the LTV and can improve access to some mortgage deals.
Moneyfacts’ October 2026 averages show why LTV matters. Its average two-year fixed rate for a 60% LTV product was 5.42%, compared with 6.37% at 95% LTV. These are averages from the source date and do not prove that every lender follows the same pattern, but they show that deposit size can affect the rates available.
| Moneyfacts LTV category | Deposit/equity implication | Two-year fixed average | Five-year fixed average |
|---|---|---|---|
| 60% LTV | About 40% deposit/equity | 5.42% | 5.60% |
| 75% LTV | About 25% deposit/equity | 5.80% | 5.89% |
| 85% LTV | About 15% deposit/equity | 6.00% | 5.97% |
| 95% LTV | About 5% deposit/equity | 6.37% | 6.30% |
A bigger deposit is not automatically the right choice if it leaves you without savings. Homebuyers also need money for solicitor fees, surveys, moving costs, repairs and emergencies. Compare the potential rate benefit with the value of keeping some cash available.
3. Two-Year vs Five-Year Fixed Rates
A two-year fixed rate gives a shorter period of payment certainty. It may suit someone who expects to move, refinance or review their mortgage soon, but the borrower will face the market again sooner. If rates have risen by the time the deal ends, the next payment could be higher.
A five-year fixed rate locks the product for longer and reduces the need to change deals as often. It may suit borrowers who prefer predictable costs for several years. The trade-off is that early repayment charges can be significant if you sell, repay or switch before the fixed period ends.
There is no universal winner. A two-year deal can look better if rates fall and the borrower obtains a cheaper deal at the end, but that is uncertain. A five-year deal can provide stability but may cost more if rates fall quickly. Compare the product fee, early-repayment charge, portability, monthly payment and likely plans for the property.
4. Do Not Compare Rates Without Fees
Mortgage products may include product fees, valuation fees, legal costs, cashback or other incentives. A deal with a lower rate but a large product fee may not be cheaper for a small mortgage. A deal with a slightly higher rate and no product fee may cost less over the period you keep it.
For a fair comparison, calculate the total cost over a realistic time window. Add the monthly payment total and any upfront product fee, and consider incentives or legal costs. If you expect to remortgage after two years, the two-year cost is more useful than simply comparing an interest rate over a full 25-year illustration.
Ask the lender or mortgage adviser to compare deals using the same loan amount, LTV, repayment type, term and fee assumptions. Be careful with headline rates that may apply only to specific customer groups or properties.
5. What Moves UK Mortgage Rates?
Bank of England policy rate
The Bank of England’s Bank Rate influences the wider cost of borrowing and can affect tracker mortgages that are linked to it. A Bank Rate change does not automatically produce the same change in every fixed mortgage product. Fixed deals are also priced using market expectations about future rates, funding costs and competition.
Swap rates and funding costs
Fixed-rate mortgage pricing is influenced by interest-rate swap markets and lender funding costs. When markets expect future rates to rise or fall, fixed mortgage deals may change before the Bank of England makes an announcement. This is one reason mortgage products can become more expensive even when the current policy rate has not changed.
Inflation and wages
Inflation and wage growth affect expectations for interest rates. Persistent inflation can make markets expect borrowing costs to stay higher, while lower inflation may create room for lower rates. Lenders also consider their own costs and the risk of lending, so the link is not automatic.
Your application
Income, credit history, deposit, property type, loan size and repayment type affect the products available. A rate shown for someone with a 40% deposit may not be available to a first-time buyer with a 5% deposit. Always check the LTV band and product conditions next to the advertised rate.
6. Example: Mortgage Payment at Different Rates
Suppose you borrow £250,000 on a repayment mortgage over 25 years. These are rounded illustrative monthly capital-and-interest payments at different rates. They exclude product fees, buildings insurance, tax considerations and other household costs. A lender’s offer may differ.
| Illustrative rate | Approx. monthly payment | What changes |
|---|---|---|
| 4.00% | About £1,320 | Lower rate and payment |
| 4.50% | About £1,390 | About £70 more each month |
| 5.00% | About £1,460 | About £140 more than 4% |
| 5.50% | About £1,535 | About £215 more than 4% |
| 6.00% | About £1,610 | About £290 more than 4% |
These examples use a standard repayment formula and are rounded. They show why a small rate change can affect a household’s monthly budget. Before applying, calculate the payment at the actual rate quoted by a lender and at a rate higher than you expect, to see whether the household can handle a change at renewal.
Use the Easy Calculator Smart Mortgage Calculator for an initial loan estimate. Check that its currency and payment assumptions match your situation, and remember that taxes, fees, insurance and lender rules can change the final amount.
7. How to Prepare for a Mortgage Application
- Work out your budget: include household bills, debts, insurance, repairs and savings, not just the lender’s maximum amount.
- Prepare your documents: lenders may ask for income evidence, bank statements, identification and details of existing credit.
- Know your deposit: check where the funds came from and keep documentation ready.
- Compare like with like: use the same LTV, term, repayment type and fee assumption when reviewing products.
- Consider future plans: moving, family changes or self-employment can affect which fixed period is sensible.
- Read early-repayment rules: find out what it could cost to leave a deal early.
8. Remortgaging and Switching Deals
When a fixed-rate deal ends, borrowers may be able to switch to a new deal with their current lender or remortgage to another provider. The best option depends on current offers, fees, affordability, property value, the remaining balance and any early-repayment charge on the existing deal.
Start early enough to compare choices before the current deal ends. Check whether the new rate can be reserved in advance, what happens if it changes before completion, and whether valuation or legal costs apply. If the property value has fallen or your income has changed, you may have fewer options than expected.
Do not assume that changing lenders will always save money. A new deal’s rate may be lower but its fee could outweigh the saving. On the other hand, staying with a lender is not automatically best either. Compare total cost and product features using the same assumptions.
9. Common UK Mortgage Rate Mistakes
- Comparing products with different LTVs: a lower rate may require a much larger deposit.
- Ignoring product fees: the lowest interest rate may not mean the lowest cost.
- Confusing fixed-term length with the whole mortgage: a two-year fix can sit inside a 25-year mortgage.
- Forgetting early-repayment charges: moving or refinancing during a fixed period can be costly.
- Assuming Bank Rate sets every mortgage rate: fixed products also depend on market funding costs.
- Taking the maximum mortgage offered: approval does not mean the payment fits your own budget.
10. How to Compare Offers at the Same LTV
When you ask two lenders for a quote, make sure both calculations use the same property value, mortgage amount, deposit, repayment type, term and fees. If one quote assumes 60% LTV and the other assumes 90% LTV, the products are not directly comparable. The lower rate may simply reflect lower borrowing risk rather than a better deal for the same borrower.
Check whether the product fee is paid upfront or added to the loan. If it is added to the mortgage, you may pay interest on it as well. Also compare any cashback or free legal/valuation offers with the rate difference. These benefits can have value, but their conditions may limit who qualifies or when they can be used.
11. Plan for the End of a Fixed Deal
Mark the date when your fixed-rate period ends. Begin comparing deals well in advance so you can ask questions without pressure. If you are moving home, check portability and whether borrowing more changes the rate or terms. If you expect to repay the mortgage early, check the early-repayment charge and when it ends.
A good rate is useful, but a suitable contract is more than a percentage. The best deal should fit the amount you borrow, how long you expect to keep it, your household budget and the level of payment uncertainty you are willing to accept.
12. How to Check Whether a Rate Is Truly Competitive
Start with the rate table, then open the individual product details. Check whether the rate includes a product fee, whether the example assumes a particular deposit, and whether the mortgage is for a purchase or a remortgage. Some comparison sites show products from a broad market sample, while others highlight selected offers. Read the description below the table before treating a figure as a typical customer rate.
Ask for a mortgage illustration that shows the monthly payment, total amount payable, fees and what happens when the fixed deal ends. If the deal is a tracker or variable-rate mortgage, ask for a payment example after a rate rise. A useful comparison includes the cost if you keep the product for the full fixed period and the cost if you leave early.
13. Budget for More Than the Mortgage Payment
The monthly mortgage payment is only one part of household spending. Homeowners may need to pay buildings insurance, council tax, utilities, service charges, ground rent where applicable, maintenance and repair costs. A new boiler, roof repair or unexpected service charge can change the budget quickly. Keep a cash reserve instead of spending all savings on the deposit and fees.
Make your decision using a budget that can cope with normal surprises. If the mortgage works only when every bill stays low and the household income never changes, it may be too tight. The right product is not simply the lowest rate; it is a deal whose costs and risks you understand and can manage.
14. A Final Product-Comparison Tip
Save the product factsheet or illustration for every deal you shortlist. It helps you review the offer later without relying on memory or a search result that may have changed. When you ask an adviser to compare products, tell them how long you may stay in the home and whether you might move, overpay or refinance during the deal period.
15. Frequently Asked Questions
What are mortgage rates in the UK today?
Moneyfacts’ 30 October 2026 snapshot showed average rates of 5.97% for a two-year fixed mortgage and 6.00% for a five-year fixed mortgage. Its lowest listed 60% LTV deals were 4.90% and 4.91%, with product fees. Check current eligibility and fees before comparing an offer.
Are two-year or five-year fixed rates lower?
It depends on the market, loan-to-value and product. Moneyfacts’ 30 October average was 5.97% for two years and 6.00% for five years, but its best listed deals were 4.90% and 4.91% at 60% LTV. Compare the fees and terms before deciding.
Does a bigger deposit get a better rate?
A larger deposit reduces LTV and can provide access to lower-rate products. Moneyfacts’ October 2026 averages showed different rates at 60%, 75%, 85% and 95% LTV. Your exact offer depends on the lender and application.
What is the difference between fixed and tracker mortgages?
A fixed deal keeps the interest rate unchanged for the fixed period. A tracker follows a stated reference rate, often Bank Rate plus or minus a margin, so the mortgage rate may change according to its contract.
What happens when my fixed rate ends?
You usually need to choose another deal or move to the lender’s standard variable rate. Begin comparing options before the end date so you have time to understand fees and eligibility.
Where can I calculate a mortgage payment?
Use the Easy Calculator Smart Mortgage Calculator for an initial estimate, then verify the payment and costs with a lender.
16. Final View
UK mortgage rates depend on market funding costs, Bank Rate expectations, lender competition, LTV and product fees. The late-October comparison used here showed an average 5.52% two-year fixed and 5.50% five-year fixed rate in Rightmove’s snapshot. Moneyfacts’ October averages differed by LTV, showing why a single headline number rarely describes every borrower’s options.
Compare the full cost of a deal, not just the rate. Check the deposit band, product fee, early-repayment charge, fixed period, repayment type and what happens when the offer ends. A payment you can manage through future changes is more useful than a rate that looks attractive but comes with hidden trade-offs.
Research Method and Sources
- Rightmove: current UK mortgage rates, updated 27 October 2026.
- Moneyfacts fixed-rate mortgage comparison, October 2026 averages.
- Bank of England: Bank Rate.
- MoneyHelper: mortgage interest rates.
- Easy Calculator Smart Mortgage Calculator.
The rate figures are dated snapshots. Sources may update their tables, and actual products can have different fees or eligibility rules. Confirm the latest figures with the provider before deciding.
Disclaimer
This article is for general information only and is not mortgage, financial, tax or legal advice. UK mortgage rates and lending criteria can change. Actual eligibility and costs depend on the applicant, property and product. Review the mortgage illustration and seek qualified advice if needed.
