Home / Finance
Finance

UK Mortgage Rates 2026: When Will They Fall and What to Do Now

With base rate cuts continuing, mortgage rates are falling. Here is what borrowers need to know.
National Herald UK
Finance Desk
Finance Desk
Finance Published April 11, 2026 · 2:05 PM Updated June 25, 2026 · 7:34 PM 1 min read
WA X f in

UK mortgage rates have begun falling following the Bank of England rate-cutting cycle. The average two-year fixed rate has fallen to approximately 4.5%, down from a peak of 6.3% in late 2023.

n

Bank of England Outlook

n

The MPC has cut the base rate to 4.25%. Market expectations point to around 3.5% by end-2026, though these forecasts carry significant uncertainty.

n

Remortgage Decisions

n

For the 1.5 million households whose fixed-rate deals expire in 2026, the question is whether to fix now or track the base rate downward. Fixing now provides certainty; tracking benefits from further cuts.

n

First-Time Buyers

n

Government Help to Buy schemes have ended but mortgage guarantee schemes and shared ownership remain available.

n

Best Buys

n

For borrowers with 40% equity or more, rates below 4% are available from challenger lenders. Smaller deposits attract higher rates reflecting lender risk.

n