Mortgage rates in 2026 are significantly higher than the historic lows of 2020–2022 but have come down from the peaks of late 2023. The Bank of England base rate, your loan-to-value ratio and your credit profile are the three biggest factors that determine what you'll actually be offered.
Your LTV (Loan-to-Value) — the percentage of the property value you're borrowing — is the single biggest factor in determining your rate tier. Here's a rough guide to what to expect across the market:
| LTV | Deposit | 2-yr fixed (approx) | 5-yr fixed (approx) |
|---|---|---|---|
| 60% | 40%+ | 3.8–4.2% | 3.7–4.1% |
| 75% | 25% | 4.2–4.6% | 4.1–4.4% |
| 80% | 20% | 4.4–4.8% | 4.3–4.7% |
| 85% | 15% | 4.6–5.0% | 4.5–4.9% |
| 90% | 10% | 4.8–5.3% | 4.7–5.1% |
| 95% | 5% | 5.2–5.8% | 5.0–5.5% |
These are market ranges, not guarantees. The best rates within each band go to borrowers with clean credit histories, stable income and no recent missed payments. Rates change frequently — always check live rates via a broker or comparison site before making decisions.
5-year fixes currently price at a small discount to 2-year deals for most LTV tiers, which is unusual — typically longer fixes cost more because you're locking the lender into a rate for longer. This inversion suggests the market expects rates to fall over the next few years.
If you expect rates to fall significantly, a 2-year fix lets you remortgage sooner onto potentially cheaper deals. If you value certainty and want to avoid remortgage fees in two years, a 5-year fix is the lower-friction choice. The difference in monthly payment between a 4.3% and 4.5% rate on a £250,000 mortgage is around £30/month — so the decision is more about strategy than monthly budget.
Loan-to-Value (LTV) — the biggest single factor. Every 5% extra deposit you can put down typically unlocks a better rate tier, particularly the jumps at 90%, 85%, 80% and 75%.
Credit score — lenders run a hard credit check when you apply. Missed payments, defaults, CCJs or high credit utilisation all push you toward higher rates or reduce the number of lenders willing to offer. Check your report with Experian or ClearScore before applying.
Income and affordability — lenders assess whether you could afford repayments if rates rose by 3 percentage points (the stress test). Self-employed applicants, those on variable income or those with other significant debt may find fewer lenders available.
Property type — flats above commercial premises, ex-local authority properties, high-rise flats and non-standard construction can all attract higher rates or reduced lender choice.
On a £250,000 mortgage over 25 years, the difference between 4.0% and 4.5% is approximately £70/month — or around £840/year. Over a 5-year fixed term that's £4,200. It's meaningful but not transformative. What matters more is not falling onto the SVR and remortgaging at the right time.
Yes — 4% or below is a strong rate in the current market. Only borrowers with 40%+ deposits and excellent credit histories are realistically accessing sub-4% deals. For most buyers with 10–25% deposits, 4.5–5% is the realistic range.
LTV is one of the biggest drivers. A borrower at 60% LTV typically accesses rates 0.5–1% lower than one at 90% LTV. Every extra percentage point of deposit moves you toward a cheaper tier, with the biggest jumps at 60%, 75%, 80% and 85%.
5-year fixes currently price at a small discount, which is unusual. If you value payment certainty and want to avoid remortgage costs in two years, a 5-year fix is reasonable. If you think rates will fall sharply, a 2-year fix keeps your options open sooner. The monthly payment difference is usually modest.
Start the process 3–6 months before your current deal ends. Many lenders let you lock in a new rate up to 6 months in advance with no obligation to complete. This protects you if rates rise and means you won't accidentally fall onto the much higher SVR.
Check the Bank of England website for the current rate — it changes at scheduled MPC meetings throughout the year. Mortgage rates track the base rate broadly, but lenders also factor in swap rates (the cost of borrowing money in financial markets), which is why mortgage rates can move even when the base rate holds steady.