Residential Mortgage Rates 2026 — Updated October 2026
- best 2yr fix (Danske Bank, £1,124 fee)
- 4.69%best 2yr fix (Danske Bank, £1,124 fee)
- best 5yr fix (Halifax, £1,099, 60% LTV)
- 4.86%best 5yr fix (Halifax, £1,099, 60% LTV)
- best 2yr tracker (Barclays)
- 3.99%best 2yr tracker (Barclays)
- BoE base rate (held 17 Sep 2026)
- 3.75%BoE base rate (held 17 Sep 2026)
As of 1 October 2026, the best UK 2-year fixed mortgage rate is 4.69% (Danske Bank, £1,124 fee) and the best 5-year fix is 4.86% (Halifax, 60% LTV). Average rates are much higher — 5.92% for a 2-year fix and 5.94% for a 5-year fix — after most lenders raised fixed rates two or three times in September. This guide shows rates by term and LTV, what moves your rate, and the full cost including fees.
Residential Mortgage Rates — October 2026
Swipe the table sideways to see every column.
| Product | Best rate (lender, fee, LTV) | Market average |
|---|---|---|
| 2-year fix | 4.69% (Danske Bank, £1,124) | 5.92% |
| 3-year fix | 4.80% (Halifax, £1,099, 60%) | — |
| 5-year fix | 4.86% (Halifax, £1,099, 60%) | 5.94% |
| 10-year fix | 5.29% (Santander, £1,224, 60%) | — |
| 2-year tracker | 3.99% (Barclays, £1,104, 60%) | — |
| 90% LTV 2-year fix | 4.77% (Danske Bank, £1,124) | — |
| Self-employed / complex income | typically 0%–0.40% above the equivalent | Specialist range |
What moves your mortgage rate
LTV
The biggest single rate driver. Moving from 85% to 75% LTV typically saves 0.3%–0.5% on the rate. If you can raise your deposit by 5%–10%, the rate saving over a 2 or 5-year fix often exceeds the cost of finding the additional deposit.
Fix term
Average 2-year and 5-year fixes are currently priced almost identically (5.92% and 5.94%). 2-year fixes expose you to rate risk at renewal; 5-year fixes provide payment certainty but lock you into the current rate if rates fall.
Income type
Standard PAYE income attracts the widest lender pool and sharpest rates. Self-employed, contract, variable, and overseas income all require specialist lenders or specialist treatment and typically add 0%–0.40% to the effective rate.
Credit history
Perfect credit accesses all products. County court judgements, defaults, or missed payments within the past 3–6 years restrict the lender pool to specialist and adverse credit lenders, which price at a significant premium.
Arrangement fee
Low rates often come with high arrangement fees (£999–£1,999). A rate of 4.69% with a £1,124 fee may cost more overall than a slightly higher rate with no fee on a smaller loan. Always compare the total cost — monthly payment × term + arrangement fee — not the rate alone.
Property type
Standard freehold or long-leasehold property attracts all lenders. Short leasehold (under 85 years), non-standard construction, and unusual property types narrow the field and may push rates up.
What a residential mortgage costs: worked example
- Rate and fee
- 4.86% with a £1,099 fee
- Monthly payment
- £1,729
- Rate and fee
- 4.93% with a £100 fee
- Monthly payment
- £1,742
- B is cheaper by
- £269
£300,000 over 25 years on a 5-year fix.
Option A
Option B
Over 5 years A saves £730 in payments but costs £999 more in fees.
The lowest rate is not always the cheapest deal.
Rates rose in September — lock in today, review before completion
The figures above are indicative and describe the best case. Send your own scenario and we will come back the same working day with terms from the lenders that actually fit it.
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Rate context and outlook
The Bank of England held Bank Rate at 3.75% on 17 September 2026, its sixth consecutive hold, but three of nine MPC members voted to raise it to 4.0%. The Committee warned policy may have to tighten if the Middle East conflict persists.
Fixed rates are priced from swap rates, and the 2-year swap rose from 4.26% on 3 September to above 4.70% by mid-month, so most major lenders repriced fixed rates upward two or three times in September. The next decision is on 5 November. If your deal ends in the next six months, securing a rate now and reviewing it before completion is the lower-risk approach.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
Frequently asked questions
Will mortgage rates go down in 2026?
Not on current signals. The Bank of England held at 3.75% on 17 September with three votes for a rise, and swap rates — which set fixed-rate pricing — rose sharply in September. The next decision is on 5 November.
Why have fixed rates gone up when the base rate hasn't?
Lenders fund fixed rates through swaps. The 2-year swap rose from 4.26% on 3 September to above 4.70% by mid-month, so lenders repriced.
Should I fix for 2 or 5 years?
Average 2- and 5-year rates are almost identical (5.92% vs 5.94%). A 5-year fix buys certainty at little extra cost; a 2-year fix or tracker suits you only if you can absorb rises.
What is the best mortgage rate in October 2026?
4.69% on a 2-year fix and 4.86% on a 5-year fix, both with fees of about £1,100. Your rate depends on LTV, income and credit.
Is a tracker worth it now?
The best tracker (3.99%) is 0.70% below the best 2-year fix. It rises with any base-rate increase, so compare on a "plus 0.5%" scenario — see our Fixed vs Tracker guide.
How much can I borrow?
Usually 4 to 4.5 times income, with some lenders going to 5 or 5.5 times for higher earners and certain professions, subject to affordability.
How long does a mortgage take?
A mortgage in principle takes minutes to a day; a full offer usually takes 2–4 weeks from application.
Is a lower rate with a high fee better than a no-fee deal?
It depends on the loan size. On smaller loans the no-fee deal often wins; we compare the total cost over the fixed period.
How early can I remortgage?
You can secure a new deal up to six months before your current one ends.
What documents will I need?
ID, proof of address, 3 months' payslips and bank statements, or 2 years' accounts or tax calculations if self-employed.
Where this applies
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Independent whole-of-market advice · FCA No. 814533