Remortgage Rates September 2026 — Best Buys by LTV and Fix Term
- Best 2yr remortgage fix — Danske Bank, 60% LTV (Sept 2026)
- 4.32%Best 2yr remortgage fix — Danske Bank, 60% LTV (Sept 2026)
- Best 5yr remortgage fix — various lenders, 60% LTV (Sept 2026)
- ~4.15%Best 5yr remortgage fix — various lenders, 60% LTV (Sept 2026)
- BoE base rate — held 30 July 2026
- 3.75%BoE base rate — held 30 July 2026
- When to start your remortgage process before deal expires
- 6 monthsWhen to start your remortgage process before deal expires
The best 2-year fixed remortgage rate in September 2026 is 4.32% from Danske Bank at 60% LTV (Mortgage Advice Bureau data, 1 September 2026). The best 5-year fix is marginally lower at around 4.15% at equivalent LTV — an unusual inversion where 5-year deals are cheaper than 2-year at several major lenders. The overall remortgage market ranges from 4.32% at 60% LTV to above 6% at 90%+ LTV. The Bank of England held its base rate at 3.75% on 30 July 2026. If you are coming off a 2-year fix taken in 2022-2024, you will likely face a higher rate today. If you are coming off a 5-year fix taken in 2019-2020, you may face a significant increase in monthly payments.
Remortgage Rates by LTV — September 2026
Swipe the table sideways to see every column.
| LTV | Best 2yr fix | Best 5yr fix | Avg 2yr fix | Avg 5yr fix | Fee-free 2yr option |
|---|---|---|---|---|---|
| 60% | 4.33% (Danske Bank) | ~4.15% (various) | ~4.80% | ~4.60% | ~4.55% (various) |
| 65% | ~4.40% (various) | ~4.25% (various) | ~4.90% | ~4.70% | ~4.65% |
| 75% | ~4.60% (various) | ~4.45% (various) | ~5.10% | ~4.90% | ~4.80% |
| 80% | ~4.80% (various) | ~4.65% (various) | ~5.30% | ~5.10% | ~5.00% |
| 85% | ~5.00% (various) | ~4.85% (various) | ~5.40% | ~5.20% | ~5.20% |
| 90% | ~5.20% (various) | ~5.05% (various) | ~5.60% | ~5.40% | ~5.40% |
What determines your rate
Fee-charging vs fee-free remortgage — total cost comparison
The lowest headline rate almost always comes with an arrangement fee (typically £999–£1,999). On a small remortgage (under £150,000), a fee-free deal at a marginally higher rate often costs less over the fixed period. On a large remortgage (£250,000+), the lower rate typically wins even after paying the fee. DBF always presents both options with a total cost comparison over the fixed period before recommending.
Early repayment charges — when to act and when to wait
Most fixed-rate mortgages carry an ERC during the fixed period — typically 1%–5% of the outstanding balance, reducing annually. Switching early costs the ERC plus any new arrangement fee. DBF calculates the break-even point: the month at which the saving from the better rate exceeds the exit cost. For a £300,000 mortgage, a 1% ERC is £3,000 — recovered in approximately 9 months at a 0.50% rate saving. Many lenders allow you to lock in a new rate up to 6 months before your current deal ends, removing ERC risk entirely.
2-year vs 5-year fix — the unusual September 2026 position
As of September 2026, 5-year fixes are cheaper than 2-year fixes at several major lenders — an unusual market position driven by lender expectations around the rate cycle. For borrowers settled in their home who want payment certainty, 5-year is currently the better deal. For those expecting to move or significantly overpay within 3 years, 2-year remains more flexible despite the higher headline rate.
Remortgage timeline — starting 6 months early
Most lenders allow a new rate to be agreed up to 6 months before completion of the remortgage. Starting the process 5–6 months before your current deal ends locks in the rate available today while avoiding any ERC. If rates fall before completion, DBF re-brokers to a better deal. If rates rise, the locked-in rate is protected. There is no cost to starting early.
Worked cost example
- Payment increase from current deal
- +£520–£582/month regardless of option chosen
Remortgage scenario: £285,000 outstanding balance at 80% LTV. Current deal: 2.15% (2020 fix) ending October 2026. Monthly payment: £1,089.
New 2yr fix option A — fee-charging at 4.80%: Monthly £1,628. Arrangement fee: £1,495. Total 2yr cost: £40,571.
New 2yr fix option B — fee-free at 5.00%: Monthly £1,671. No fee. Total 2yr cost: £40,104.
New 5yr fix option C — 4.65%: Monthly £1,609. Arrangement fee: £995. Total 5yr cost: £97,535.
ERC to leave current deal now (0.5% of £285,000): £1,425. Break-even vs waiting: 2.4 months.
DBF recommendation: lock in 5yr option C now (6 months before deal expires). Rate protected; no ERC payable at deal end.
Rate context and outlook
The Bank of England held its base rate at 3.75% on 30 July 2026 — the fifth consecutive hold — in a divided 6-3 vote. Three Monetary Policy Committee members (Megan Greene, Catherine Mann, and Huw Pill) voted to raise the rate to 4.0%, citing concern about persistent energy price inflation from the Middle East conflict. This is the largest hawkish minority since the tightening cycle ended. The next decision is on 17 September 2026. Markets price a 72% probability of hold (SONIA futures, 17 August 2026), but the growing hawkish minority has raised the tail risk of a rate increase. Update this section after the 17 September decision. For remortgagers: lenders who fixed at 2–5% in 2020–2022 are now rolling off onto deals 2–3% higher. The average payment increase for those remortgaging in 2026 is estimated at £300–£600/month (BoE data, 2026). Starting the remortgage process 5–6 months early and locking in a rate today gives certainty in an uncertain rate environment. DBF manages the full remortgage process including conveyancing coordination.
Frequently asked questions
What is the best remortgage rate in September 2026?
The best 2-year fixed remortgage rate is 4.32% from Danske Bank at 60% LTV (Mortgage Advice Bureau, 1 September 2026). The best 5-year fix is approximately 4.15% at 60% LTV. Fee-free options start from around 4.55% (2-year) and 4.35% (5-year). The best rate depends on your LTV, loan size, and whether paying an arrangement fee makes sense for your balance.
Should I fix for 2 or 5 years when remortgaging in 2026?
In September 2026, 5-year fixes are unusually cheaper than 2-year fixes at several major lenders. For borrowers planning to stay in their home, 5-year offers better value and payment certainty. For those expecting to move within 3 years, 2-year flexibility may outweigh the slightly higher rate. DBF models both options with a total cost comparison for your specific situation.
When should I start the remortgage process?
Start 5–6 months before your current deal expires. Most lenders allow you to lock in a rate this far ahead, completing when your deal ends. This removes both ERC risk (you switch at the end of your deal) and rate rise risk (rate is locked in now). There is no cost to starting early.
How much does remortgaging cost?
Arrangement fee: £0–£1,999 (choose fee-free or add to the loan). Valuation: £0–£500 (many lenders offer free valuations for remortgages). Legal fees: £0–£500 (most lenders offer free legal work for a standard remortgage). Total out-of-pocket: often £0 for a like-for-like remortgage with a fee-free product. ERC from your existing lender: check your current deal terms.
Can I remortgage to release equity?
Yes — a remortgage can raise the loan amount to release equity from your property (capital raise). The new loan must be assessed against your current income and expenditure. LTV limits apply. Most lenders cap residential remortgages at 85%–90% LTV. DBF advises on the maximum release available and which lenders offer the best terms for equity release remortgages.
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Independent whole-of-market advice · FCA No. 814533