Mortgage rates have shifted significantly since 2022. Here are the current benchmarks by LTV, what a competitive rate looks like, and what affects the rate you're offered.
What counts as a good mortgage rate in 2026? A good mortgage rate in 2026 is broadly one that sits at or below the market average for your loan-to-value (LTV) band. For a 75% LTV purchase, rates around 4.0–4.5% on a 5-year fix are competitive. The lower your LTV, the better rate you can access — 60% LTV or below unlocks the best available deals.
| LTV | 2-Year Fixed | 5-Year Fixed |
|---|---|---|
| 60% LTV | ~3.8% | ~3.7% |
| 75% LTV | ~4.2% | ~4.0% |
| 85% LTV | ~4.6% | ~4.4% |
| 90% LTV | ~5.0% | ~4.8% |
| 95% LTV | ~5.4% | ~5.2% |
Rates shown are indicative mid-market rates for illustrative purposes. Your actual rate will depend on your lender, income, credit history and property. Always compare live rates from a whole-of-market broker.
The choice between a 2-year and 5-year fix in 2026 depends on your view of where rates are heading:
With the Bank of England base rate having fallen from its 2023 peak, many borrowers are opting for 5-year fixes to lock in current rates before any potential rate rises return.
For a typical 75% LTV purchase in 2026, average 2-year fixed rates are around 4.0–4.5% and 5-year fixed rates around 3.8–4.2%. Rates vary significantly by lender, LTV and applicant profile.
Most advisers currently lean toward 5-year fixes given that they offer similar or lower rates with greater certainty. However your personal circumstances — likely moves, remortgage plans, affordability — should guide the decision.
60% LTV or below typically unlocks the best available rates. Every 5% reduction in LTV usually improves your rate tier. If you're close to a threshold (e.g. 76%), it may be worth paying down slightly to hit 75%.
A whole-of-market broker has access to deals not available directly and can advise on lender-specific criteria. Given the complexity of the 2026 market, most borrowers benefit from using one — many charge no direct fees, earning commission from lenders instead.
Use the free CalcHubUK mortgage calculator — enter your loan amount, rate and term to see exact monthly costs.
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