Key Takeaway

Mortgage and remortgage interest rates in the UK have risen this week compared to last Sunday. Two-year fixed-rate mortgages now average around 5.15% to 5.35%, up from approximately 5.05% to 5.25% the previous week, whilst five-year fixed rates range from 4.85% to 5.10%, an increase of roughly 0.10 percentage points. Tracker mortgages, which follow the Bank of England base rate, remain tied to the current base rate of 4.75% plus the lender’s margin. Rates are as of Sunday 21 June 2026 and change frequently, so verify current deals with an FCA-authorised mortgage adviser before deciding.

Why Rates Have Risen This Week

Mortgage rates in the UK are primarily influenced by the Bank of England base rate (currently 4.75%) and swap rate movements, which reflect lenders’ funding costs. According to the Bank of England, the base rate directly affects tracker and variable-rate mortgages, whilst swap rates drive the pricing of fixed-rate deals.

This week’s uptick reflects recent volatility in the swap rate markets and lender sentiment around inflation expectations. When swap rates rise, lenders typically pass those costs on to borrowers by increasing the interest rates on new fixed-rate mortgage products.

Current Average Rates by Product Type

Two-Year Fixed-Rate Mortgages

Two-year fixed deals now sit between 5.15% and 5.35% on average for borrowers with a 25% deposit (75% loan-to-value). Those with larger deposits of 40% or more may access rates closer to 4.90% to 5.10%. Two-year fixes suit buyers or remortgagers who expect rates to fall in the near term or who want the flexibility to switch again soon.

Five-Year Fixed-Rate Mortgages

Five-year fixed-rate products range from approximately 4.85% to 5.10% at 75% LTV, and from 4.65% to 4.90% at 60% LTV. The longer deal period provides certainty over monthly payments for five years, protecting borrowers from future rate rises but locking them in if rates fall significantly.

Tracker Mortgages

Tracker mortgages follow the Bank of England base rate plus a margin, typically between 0.50% and 1.50%. With the base rate at 4.75%, most tracker deals currently charge between 5.25% and 6.25%. Tracker rates move immediately when the base rate changes, offering the possibility of lower payments if the Bank cuts rates, but rising costs if rates increase.

Read also: Mortgage Interest Rates in the UK This Week: Fixed Rates Continue to Fall

Standard Variable Rate (SVR)

Borrowers who have reached the end of their fixed or discounted deal period revert to their lender’s SVR, which typically ranges from 7.00% to 8.50%. Remortgaging to a new fixed or tracker deal is almost always cheaper than staying on the SVR.

What This Means for Buyers and Remortgagers

If you are in the process of buying a home or remortgaging, this week’s rate rise makes it even more important to compare deals quickly and secure a rate before further increases. Most lenders offer a rate lock or product reservation period of 3 to 6 months, allowing you to hold a rate whilst your application progresses.

For those coming to the end of a fixed deal in the next few months, now is the time to speak with an FCA-authorised mortgage adviser. Remortgaging early, within the last 3 to 6 months of your current deal, can help you avoid reverting to a much higher SVR.

Important Disclaimer and Next Steps

Your home may be repossessed if you do not keep up repayments on your mortgage.

The information in this article is general educational information only and is not regulated mortgage advice, nor personalised financial, lending or legal advice. Refisage is not authorised by the Financial Conduct Authority (FCA). Rates, eligibility, fees and product availability vary by lender, product and your personal circumstances, and mortgage deals change frequently. Before making any decision about a mortgage or remortgage, consider speaking to an FCA-authorised mortgage adviser who can assess your individual situation and recommend suitable products. For impartial guidance, visit MoneyHelper or explore mortgage resources at MoneySavingExpert.