Fixed-rate mortgage deals in the UK have continued their downward trend this week, with lenders cutting rates across popular two-year and five-year products. The average two-year fixed rate now sits at approximately 5.2%, while five-year fixes are averaging around 4.9%, according to major comparison sites. This follows the Bank of England holding the base rate at 4.75% earlier this month (Bank of England, 2026), with markets pricing in potential cuts later in 2026.

What’s Driving the Rate Cuts

Lenders have been adjusting their pricing in response to swap rate movements, the wholesale costs that underpin fixed-rate mortgage pricing. Five-year swap rates have eased slightly over the past fortnight, giving lenders room to reduce headline rates and compete for new business. While the Bank of England base rate remains at 4.75%, expectations that inflation will continue to moderate have encouraged some lenders to price in future base rate cuts when setting longer-term fixed deals.

Competition among lenders has also intensified, particularly for borrowers with larger deposits (higher equity or lower loan-to-value ratios). Those with a 40% deposit or more are seeing the sharpest rate cuts, with some five-year fixed deals now below 4.5%.

What This Means for Buyers and Remortgagers

First-time buyers and home movers with a deposit of at least 10% can access five-year fixed rates from around 5.3% to 5.7%, depending on their loan-to-value (LTV) ratio and the lender. Those with larger deposits (25% or more) are seeing rates closer to 4.9% to 5.1% on five-year fixes.

Remortgagers whose deal period is ending in the next three to six months should compare current rates now. If you are reverting to your lender’s standard variable rate (SVR), which typically sits above 7%, switching to a new fixed deal could save you hundreds of pounds per month. You can usually secure a new rate up to six months before your current deal ends without early repayment charges (ERCs), although terms vary by lender (MoneyHelper, 2026).

Tracker and Variable Rates

Tracker mortgages, which follow the Bank of England base rate, remain less popular than fixed deals but are available for those who want flexibility or believe the base rate will fall soon. Current tracker rates start at around base rate plus 1%, putting them near 5.75% to 6% depending on the lender’s margin and your LTV.

Standard variable rates (SVRs) have not fallen in line with fixed rates and remain expensive, typically 7% to 8%. If you are on an SVR, remortgaging to a fixed or tracker deal is almost always cheaper.

Next Steps

If you are buying or remortgaging, request an agreement in principle (AIP) from an FCA-authorised mortgage broker or lender to see which rates you qualify for based on your income, credit file, and deposit. Rates are tiered by LTV, so even a slightly larger deposit can unlock a lower rate band.

Check whether your current deal has early repayment charges if you are remortgaging early, and compare the APRC (annual percentage rate of charge), not just the headline rate, to account for arrangement fees and other costs. Some lower headline rates come with higher fees, which can make them more expensive overall for smaller loans or shorter terms.

Important Information

This article provides general educational information about UK mortgage rates and is not regulated mortgage advice or personalised financial, lending, or legal advice. Refisage is not authorised by the Financial Conduct Authority (FCA). Interest rates, eligibility, product availability, and fees vary by lender, product, and your personal circumstances, and can change daily. The rates mentioned reflect general market averages as of June 2026 and may not be available to all borrowers.

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

Before making any mortgage decision, confirm current rates and terms with an FCA-authorised mortgage adviser or lender for your individual situation, as this article cannot account for your specific needs or circumstances. For impartial guidance, visit MoneyHelper or consult an FCA-authorised mortgage adviser.