Bank of England, average quoted household interest rates · June 2026
Average UK mortgage rates
What UK lenders are actually advertising, averaged across the market by the Bank of England and updated monthly. Not a best-buy table showing the one deal almost nobody qualifies for, and not the base rate — which is not a mortgage rate at all.
That last figure is the one to act on. The average standard variable rate is 6.6% against 4.65% for a five-year fix — a gap of 1.95 percentage points. On a £200,000 repayment mortgage over 25 years that is about £234 a month, or £2,810 a year, for having done nothing when a deal ended.
Rates by deposit size
| Loan to value | Deposit | 2-year fixed | 5-year fixed |
|---|---|---|---|
| 75% | 25% | 4.81% | 4.65% |
| 85% | 15% | 5.19% | — |
| 90% | 10% | 4.6% | — |
| 95% | 5% | 5.56% | 4.53% |
| Standard variable | n/a | 6.6% | |
What these numbers are — and what they are not
The Bank of England collects the rates lenders advertise (via Moneyfacts) and combines them into a weighted average, weighted by how much each lender actually lends. So a rate offered by a major high-street bank counts for more than one from a small building society.
Three things follow from that, and they matter if you are comparing this page with anything else:
- These are not best-buy rates. A comparison table shows the sharpest deal in the market. This shows the middle of it, which is closer to what a typical borrower is offered.
- They are headline rates. Product and arrangement fees sit on top, and a low rate with a large fee can cost more overall than a higher rate without one — particularly on a smaller loan.
- The lender sample changes each month. Only lenders advertising a product that fits each definition are included, and the Bank does not publish an average where fewer than three lenders qualify. That is why the ladder from 75% to 95% LTV is not always perfectly smooth — an unusually competitive month at one tier can briefly undercut another. The trend across months is more reliable than any single comparison between two tiers.
Why the standard variable rate is so high
An SVR is the rate you roll onto when a fixed or tracker deal ends. Unlike a tracker it is not tied to anything — the lender sets it, and can change it more or less at will.
It is high because it does not need to compete. Lenders win business on their headline fixed rates; the SVR is where customers end up through inertia. Roughly a fifth of mortgage holders are on one at any time, and most could move.
If your deal has ended, this is the single most valuable thing on this page. Moving from the average SVR to the average five-year fix is worth about £234 a month on a £200,000 loan. Start looking around six months before your current deal ends — offers are usually valid for three to six months, so you can lock one in early and still take a better one if it appears.
Why fixed rates ignore the base rate
People expect fixed mortgage rates to follow the Bank of England base rate, then find they have already moved before a decision, or barely move afterwards.
That is because fixed rates are priced from swap rates — what it costs a lender to borrow money for a fixed period, which reflects where the market expects rates to go. By the time the Bank announces a change, the market has usually priced it in weeks earlier. The base rate moves trackers and SVRs; expectations move fixes.
What the 2-year and 5-year gap tells you
Right now the five-year fix at 75% LTV (4.65%) is cheaper than the two-year (4.81%). That is worth noticing, because it is not the natural order — normally you pay a little more for a longer guarantee.
When five-year money is cheaper than two-year money, the market is saying it expects rates to be lower in future. That is information, not a promise, and the market is regularly wrong. But it does mean the usual trade-off is reversed at the moment: a five-year fix currently buys both a lower payment and more certainty.
The case for a two-year deal is flexibility — if rates fall further you are not locked in, and if you might move or overpay heavily, a shorter tie-in matters more than the rate. Work through the numbers with our mortgage calculator.
How to actually get a better rate
- Get under an LTV threshold. Rates step at 90%, 85%, 80% and 75%. Being just above one is expensive — a small overpayment or a slightly lower purchase price that tips you under a threshold can be worth more than months of shopping around.
- Do not sit on the SVR. See above. It is the biggest single saving available to most people.
- Compare total cost, not rate. Rate plus fees over the deal period, not the headline number.
- Check your credit file first. Errors take weeks to fix and can move you into a worse pricing tier — see is there a minimum credit score for a mortgage.
Using this data
Suggested citation: Sunny Avenue, “Average UK mortgage rates, June 2026”, derived from Bank of England, average quoted household interest rates. Updated 2026-07-29.
Frequently asked questions
What is the average mortgage rate in the UK right now?
As of June 2026, the average advertised 2-year fixed rate at 75% LTV is 4.81% and the 5-year equivalent is 4.65%, according to Bank of England data. These are averages across lenders, so individual deals will be both better and worse.
Why is my standard variable rate so much higher?
The average SVR is 6.6%, which is 1.95 percentage points above the average 5-year fix. An SVR is the rate a lender can set at will — it is where you land when a deal ends, and it is not competitive by design. On a £200,000 repayment mortgage that gap is roughly £234 a month.
Is the mortgage rate the same as the Bank of England base rate?
No. The base rate is what the Bank of England pays commercial banks, and mortgage rates sit above it. Fixed rates in particular are priced off swap rates — the market's expectation of where rates are heading — which is why fixed deals often move before a base rate decision rather than after it.
Does a bigger deposit get me a lower rate?
Usually, yes, and the largest single step is getting under 90% LTV. The effect is not perfectly smooth in this data because the lenders offering products at each LTV differ from month to month, so a competitive month at one tier can briefly undercut another.
Should I fix for 2 years or 5 years?
Currently the 5-year fix at 75% LTV (4.65%) is cheaper than the 2-year (4.81%), which tells you the market expects rates to fall. A 5-year fix buys certainty and costs less today; a 2-year keeps you flexible if rates do drop. Neither is right in the abstract — it depends how much a stable payment is worth to you.
Source: Bank of England, average quoted household interest rates. Contains public sector information licensed under the Open Government Licence v3.0. General information, not mortgage advice — rates vary by lender and circumstances. Updated 2026-07-29.