Mortgage interest rates are one of the most important factors in determining how much your home will actually cost you over time. Even a 0.5% difference can mean paying tens of thousands of pounds more over the life of your mortgage.
See how rates affect your payments
Try different interest rate scenarios in our free mortgage calculator.
Try the calculator →What influences mortgage rates in the UK?
- Bank of England base rate — the most influential factor
- Your loan-to-value (LTV) — lower LTV means better rates
- Your credit score — higher score means better rates
- The type of rate — fixed vs variable
UK mortgage rates in 2026
Following several years of volatility, UK mortgage rates in 2026 have stabilised. The typical range for a 2-year fixed rate is currently between 3.8% and 5.5% depending on your LTV and lender.
How much difference does the rate make?
On a £250,000 mortgage over 25 years, the difference between 3.5% and 5.5% is over £84,000 in total interest. This is why shopping around and using a mortgage broker makes an enormous financial difference.
Look at the APR, not just the headline rate
The APR includes fees and charges and gives a more accurate picture of the true cost. A low headline rate with a high arrangement fee may cost more than a slightly higher rate with no fee.