Should I Fix My Mortgage in 2026?

What Does Fixing Your Mortgage Mean?

A fixed-rate mortgage locks your interest rate for a set period, typically two, three, or five years. Your monthly payment stays the same throughout that period regardless of what the Bank of England does with base rate. At the end of the fixed term, most lenders move you onto their Standard Variable Rate (SVR), which is usually considerably higher and entirely at the lender’s discretion.

The alternative is a tracker or variable-rate mortgage. A tracker follows the Bank of England base rate directly, typically at a set margin above it. When base rate falls, your payments fall. When it rises, yours do too.

What Is the Current Mortgage Rate Picture?

As of April 2026, the Bank of England base rate is 3.75%. The Monetary Policy Committee voted unanimously to hold at its March 2026 meeting. The next decision is scheduled for 30 April 2026.

Fixed-rate mortgages are sitting well above the base rate. The average two-year fixed rate is currently around 5.56%. The average five-year fixed rate is around 5.54%. The best available deals at lower loan-to-value ratios (60% LTV) start from approximately 4.71% on a two-year fix. Lender Standard Variable Rates currently range from 8% to 10%, depending on the lender.

Rates have risen in recent weeks. Rising global energy and commodity prices linked to the Middle East conflict pushed swap rates sharply upward, and lenders repriced their fixed deals quickly. The situation remains fluid and further movement in either direction is possible before the April MPC decision.

Should I Fix My Mortgage or Go Variable?

There is no universal answer, but the decision framework is straightforward.

The Case for Fixing

Fixing gives you certainty. You know exactly what you will pay each month for the duration of the deal. In a market where the rate outlook has become genuinely uncertain, that certainty has real value, particularly if your finances do not leave much room for payment increases.

Fixed rates do not respond to base rate changes. If the Bank of England holds or raises rates later in 2026, a fixed deal insulates you entirely. Some forecasters now expect base rate to remain at 3.75% or move higher toward 4% to 4.5% if inflation proves stickier than anticipated due to elevated energy prices. Tracker holders would see payments rise or stay elevated in that scenario; those on fixed deals would not.

Fixing is also simpler. There is no monitoring required, no decisions mid-term, and no exposure to market swings.

The Case for a Tracker

The argument for a tracker or variable rate rests on rate cuts materialising. If the MPC cuts at its April 2026 meeting and continues cutting through the year, tracker holders benefit directly and quickly. Most economists still expect at least one or two cuts before the end of 2026, though the timing has shifted later than initially forecast.

Some tracker mortgages also allow penalty-free exit during the term. That flexibility allows you to switch to a fixed deal if the rate environment changes. For borrowers who want to keep options open without committing to a fixed rate at current levels, that can have genuine value.

The risk is clear: if cuts do not arrive, or if base rate rises, tracker payments go up accordingly.

Should I Fix for 2 Years or 5 Years?

This question comes up constantly, and the answer depends on your view of the market and your personal circumstances.

Two-Year Fix

A two-year fix gives you flexibility to remortgage sooner if rates fall materially over the next two years. The trade-off is that you face another product decision and likely another arrangement fee in two years. Two-year fixes suit borrowers who believe rates will fall significantly and want to capture a lower rate when they do, or those who have a specific reason to need flexibility within a shorter window.

Five-Year Fix

A five-year fix offers certainty over a longer period. It reduces how often you remortgage, cuts the associated arrangement fee costs, and removes your exposure to whatever the rate environment looks like two years from now. At present, the gap between two-year and five-year fixed rates is narrow, in many cases less than 0.1%. When that gap closes, the case for the five-year fix strengthens considerably. Paying a minimal premium for three additional years of certainty is worth it for most borrowers unless there is a specific reason to need shorter-term flexibility.

Five-year fixes work particularly well if you are planning to stay in the property for the foreseeable future and want to remove mortgage rate uncertainty from your financial planning.

Will Mortgage Rates Fall Further in 2026?

Possibly, but the outlook is far less clear than it appeared six months ago.

Earlier in 2026, markets were pricing in two or three base rate cuts for the year, and some forecasters expected fixed deals to fall toward 4% or below by the end of the year. Those expectations have been scaled back significantly. Rising energy prices driven by the Middle East conflict have increased near-term inflation risk, giving the MPC reason to hold rather than cut.

Oxford Economics has outlined the possibility that base rate remains at 3.75% through the rest of 2026 and into 2027. Other forecasters still expect one or two cuts this year, with the April and June MPC meetings considered the most likely windows. Markets are currently pricing in approximately 47% probability of a cut at the 30 April meeting.

The honest position: nobody knows. Swap rates, which lenders use to price fixed deals, move ahead of base rate decisions and reflect market expectations rather than certainties. Fixed mortgage rates can rise even when base rate is held, which is exactly what has happened in recent weeks. Waiting for rates to fall before fixing is a speculation, not a strategy.

When Should I Start Looking to Remortgage?

Six months before your current deal ends. This is not approximate guidance; it is a practical deadline with material financial consequences.

Most lenders allow you to lock in a new rate up to six months in advance, with the rate secured from the date of offer. If you do not act until your deal expires, you land on the SVR by default. At 8% to 10%, that costs considerably more than any competitive fixed deal currently available.

Starting early also preserves options. If you lock in a rate and a cheaper deal appears before your start date, many lenders allow you to switch to the new deal, sometimes at no cost. You have little to lose by acting early and a great deal to lose by leaving it late.

If you are within six months of your current deal ending, or if your deal has already ended and you are sitting on the SVR, speaking to a broker should be the immediate next step. You can read our guide comparing product transfer versus remortgage to understand your options if you are considering staying with your current lender.

What If I Fix and Rates Drop?

This is the concern most borrowers raise before committing to a fixed deal.

The short answer: it depends on the size of the drop and your early repayment charges. ERCs typically start at 5% of the outstanding balance in year one of a five-year fix and reduce by around 1% per year. On a £200,000 mortgage, a 3% ERC means £6,000 to exit early. Whether switching makes financial sense depends on how much you would save on the new rate across the remaining term. The maths does not always favour switching even when rates fall noticeably.

Some lenders offer product switches, which allow existing customers to move to a new rate with the same lender, sometimes without triggering an ERC. This is worth raising with your broker before assuming a rate drop makes an early exit worthwhile.

Fixing is not irreversible, but exits carry a cost. Factor that into the term length decision before you commit.

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Frequently Asked Questions

Should I fix my mortgage or go variable in 2026?

For most borrowers, fixing provides certainty in an uncertain market. A tracker makes sense if you can comfortably absorb payment increases and are confident rate cuts will arrive soon. The decision should be based on your financial position and risk tolerance, not rate predictions alone.

Should I fix my mortgage for 2 or 5 years in 2026?

If two-year and five-year rates are close, the five-year fix offers more certainty for a small premium. If you need flexibility due to a planned move or significant life change within two years, the two-year fix is the better fit.

What are the current best fixed mortgage rates in the UK?

As of April 2026, the best two-year fixed rates start from around 4.71% at 60% LTV. The market average sits closer to 5.56%. Rates vary significantly by loan-to-value ratio, income, credit profile, and lender criteria.

Will mortgage rates fall in the rest of 2026?

Uncertain. Earlier forecasts of significant rate cuts have been revised down. Middle East conflict has raised near-term inflation risk, reducing the likelihood of imminent base rate cuts. Most economists still expect one or two cuts this year, but timing has shifted later. Fixed mortgage rates could move in either direction depending on how inflation data and energy prices develop.

Can I lock in a mortgage rate before my deal ends?

Yes. Most lenders allow you to secure a new rate up to six months before your current deal ends. You continue on your existing rate until the new deal starts. This is standard practice and the recommended approach to avoid defaulting onto the SVR.

Is it a good time to fix my mortgage?

There is no objectively good or bad time to fix. The question is whether the certainty of a fixed payment is worth more to you than the potential savings from a tracker if cuts arrive. For most borrowers who need predictable payments, fixing is the right default position in the current environment.

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