UK Mortgage Rates Chart: Historical Trends and What They Mean for You

A UK mortgage rates chart looks simple. A line goes up, a line comes down, and a headline tells you whether rates are “rising” or “falling.” The truth is more useful and more profitable to understand. The rate you actually pay depends on your deposit, your income type, your credit profile, and the decisions you make in the weeks after you apply.

This guide reads the chart the way a whole-of-market broker does. We will cover where UK mortgage rates sit in June 2026, how they got here, what moves them, and how to turn a chart into a sensible decision for your own mortgage.

What the UK mortgage rates chart shows right now

As of June 2026, the Bank of England base rate is 3.75%. It has been held at that level since December 2025, and the next decision lands on 18 June 2026. The market currently expects another hold.

Average fixed mortgage rates have eased through the spring. Here is where the market sits at the time of writing.

Product	Average rate (June 2026)
2-year fixed	around 5.78%
5-year fixed	around 5.68%
Lowest 5-year fixed deals	from around 4.48%
Average standard variable rate (SVR)	around 7.15%

Two things stand out. The 5-year fixed average sits below the 2-year average, which tells you the market expects rates to fall over the medium term. And the gap between the average fix and the best available deals is wide, because those headline averages blend every deposit size and credit profile together.

UK mortgage rates: the last five years in context

You cannot read today’s number without the chart behind it. The base rate drives most of what happens to mortgage pricing, and the last five years have been a full cycle.

Period	Base rate	What it meant
March 2020 to December 2021	0.1%	Pandemic emergency low; cheapest mortgages on record
December 2021 to August 2023	0.25% rising to 5.25%	Rapid hiking cycle to fight inflation
August 2023 to August 2024	5.25%	A 16-year peak, then held
August 2024 to December 2025	5.25% cut to 3.75%	1.5 percentage points of cuts
2026	3.75%	Held; markets watching inflation and energy prices

The lesson from the chart is that the sub-2% deals of 2021 were the exception, not the baseline. Borrowers who fixed for five years in early 2022 effectively beat the entire hiking cycle. Borrowers who took a short fix at the 2023 peak are now remortgaging into a cheaper market. Timing the bottom is luck. Understanding the cycle is strategy.

What actually moves UK mortgage rates

The base rate is the headline, but it is not the whole story. Three forces set fixed mortgage pricing.

• The Bank of England base rate. This directly moves tracker and variable rates, and it sets the tone for everything else.
• Swap rates. These are the wholesale rates lenders pay to borrow money for a fixed term. Fixed mortgage pricing follows swaps, which is why a fixed rate can fall before the base rate does. Swaps move on expectations, not on what has already happened.
• Inflation and risk. When inflation looks sticky, or global events such as energy price shocks add uncertainty, lenders price in more caution. This is why rates can drift up even while the base rate is on hold.

This is the part the aggregator charts miss. A fixed rate is a bet on the future. When you fix, you are buying certainty that the lender is selling.

How your deposit changes the rate you get

The single biggest reason the rate you are offered differs from the headline chart is your loan to value (LTV), which is set by your deposit. More deposit means less risk for the lender and a lower rate for you. The bands below are representative 2-year fixed pricing in June 2026.

Deposit	LTV	Representative 2-year fix
40% deposit	60% LTV	around 4.4% to 4.7%
25% deposit	75% LTV	around 4.6% to 4.9%
15% deposit	85% LTV	around 4.9% to 5.2%
10% deposit	90% LTV	around 5.0% to 5.4%
5% deposit	95% LTV	around 5.1% to 5.6%

Notice that even the best 60% LTV deals sit well below the all-market average of 5.78%. The averages you see on a chart are dragged up by higher-LTV and specialist products. Crossing an LTV threshold, for example moving from 91% to 89% with a slightly larger deposit, can move you into a cheaper band and save more than shopping around ever will.

Fixed or variable: a worked example with real numbers

Charts describe the choice. They rarely model it. Take a 250,000 pound repayment mortgage over 25 years at 75% LTV.

• 5-year fix at 4.6%: around 1,404 pounds per month, locked.
• Tracker at 4.25% today (base rate plus a margin): around 1,354 pounds per month, but variable.

The tracker saves roughly 50 pounds a month, about 600 pounds a year, while rates stay where they are. But if the base rate rises and that tracker climbs to 4.75%, the payment moves to around 1,425 pounds a month, more than the fix, and you carry that uncertainty every month.

So the real question is not “which rate is lower today.” It is “how much certainty is worth to you, and can your budget absorb a rise.” That is a conversation, not a chart. If your fixed rate is ending soon, our guide on what happens when your fixed rate ends walks through the options before you roll onto an SVR of around 7%.

Are mortgage rates falling in the UK?

In the medium term, the market expects gradual cuts. The 5-year fixed average sitting below the 2-year average reflects that expectation, and several major lenders cut fixed pricing through the spring of 2026.

That said, the path is not guaranteed. Energy price uncertainty and above-target inflation have kept the Bank of England cautious. Anyone waiting for a dramatic drop before acting should remember that lenders price the future into fixed rates today. By the time the base rate is cut, the cheaper fixed deals are usually already gone.

How self-employed and contractor rates compare

Here is a gap every aggregator chart ignores. In principle, a self-employed applicant pays the same rates as an employed applicant. There is no “self-employed premium” on the rate itself.

The difference is access. Fewer lenders will assess your income the right way, especially if you trade through a limited company, take retained profits, or work on day-rate contracts. The wrong lender will offer a worse rate or decline you entirely. The right lender prices you exactly like anyone else. This is where whole-of-market advice earns its keep. If you are remortgaging, our self-employed remortgage guide covers how lenders read your accounts.

How your credit profile changes the rate you actually get

The chart shows prime rates. Those go to applicants with clean credit, stable income, and a healthy deposit. A missed payment, a default, or a high level of existing credit can move you to a different lender and a higher rate.

The good news is that credit is fixable with time. Small, deliberate steps in the months before you apply can move you into a better band. Our guide on how to improve your credit score for a mortgage sets out what actually moves the needle, and what is a waste of time.

What happens after you lock a rate

Securing a rate is the start, not the finish. Once you have an agreement in principle and a full application, the case goes to underwriting, valuation, and finally a formal offer. A rate you reserve can usually be held for a number of months while this runs, and if rates fall before you complete, a good broker can often switch you to the cheaper deal.

This is the process transparency the comparison sites skip. To understand your real borrowing power before you start, use our explainer on how much you can borrow, and if you already have a mortgage, weigh up a product transfer versus a remortgage before you renew.

Why the cheapest rate on the chart is often the wrong choice

This is where we will be direct. The lowest headline rate is frequently the wrong mortgage. Here is why.

• Fees. A 4.4% rate with a 1,499 pound product fee can cost more over a two-year term than a 4.7% rate with no fee, especially on a smaller loan.
• LTV bands. The advertised rate often assumes a deposit you do not have. The rate you qualify for can be a full band higher.
• Early repayment charges. Locking into a five-year deal with steep exit penalties can trap you if your circumstances change.
• Lender criteria. The cheapest lender may not accept your income, your property type, or your situation, which means the rate was never really available to you.

A chart cannot weigh those trade-offs. That is the job of advice. Whether you are a first-time buyer, remortgaging, or buying a buy-to-let, the true cost of a mortgage is the rate, the fees, and the fit, together.

Frequently asked questions

Are mortgage rates falling in the UK?

Fixed rates have eased through 2026 and the market expects gradual base rate cuts, which is why 5-year fixed averages sit below 2-year averages. The pace depends on inflation and energy prices, so the trend is downward but not guaranteed.

What are the current UK mortgage rates?

In June 2026 the average 2-year fix is around 5.78% and the average 5-year fix around 5.68%, with the lowest 5-year deals from about 4.48%. The rate you are offered depends mainly on your deposit, income type, and credit profile.

Should I fix for 2 or 5 years?

A 2-year fix lets you benefit if rates fall further, but you face remortgage costs sooner. A 5-year fix gives longer certainty at a slightly lower average rate today, but commits you for longer. The right answer depends on your budget, plans, and appetite for risk, which is exactly what a discovery call covers.

Does the Bank of England base rate set my mortgage rate?

It sets tracker and variable rates directly and influences fixed rates indirectly. Fixed pricing actually follows swap rates, which move on expectations of where the base rate is heading, not just where it is now.

Why is my offered rate higher than the chart?

Published charts show average or best-case prime rates. Your rate reflects your loan to value, whether you are employed or self-employed, your credit history, the property type, and any product fees attached to the deal.

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