Today's Mortgage Rates: UK Market Update October 2026

Average fixed mortgage rates are close to 6% in mid-October 2026, even though Bank Rate has stayed at 3.75%. If your deal ends soon or you are buying, the rate you can get today matters more than the headline average.

Fixed rates have climbed because markets now expect inflation, and interest rates, to stay higher for longer. Bank Rate itself has not moved since the summer.

This update sets out the averages, why they have moved and what to do about it. For the full picture on switching deals, see our complete UK remortgage guide.

What are average mortgage rates today?

Average fixes sit just under 6%. On 15 October 2026, Moneyfacts reported an average two-year fix of 5.96% and an average five-year fix of 5.99%. The average across all new mortgages was 5.88%. Bank Rate is 3.75%. These are averages across every loan-to-value, so borrowers with more equity usually see lower rates.

As at 15 October 2026

Measure	Rate	A month earlier
Bank of England Bank Rate	3.75%	3.75%
Average 2-year fixed rate	5.96%	5.73%
Average 5-year fixed rate	5.99%	5.78%
Average 10-year fixed rate	6.32%	6.29%
Average 2-year variable rate	4.55%	4.53%
Average of all new mortgages	5.88%	5.68%

Sources: mortgage averages from Moneyfacts, reported 16 October 2026. Bank Rate from the Bank of England’s September 2026 decision. Averages include every product at every loan-to-value, so they sit above the best rates available to borrowers with larger deposits or more equity.

Next Bank Rate decision: 5 November 2026.

Want to see individual deals? Search our live mortgage rate tables, updated through the day.

Why have fixed rates risen when Bank Rate has not?

Bank Rate is 3.75%. The Monetary Policy Committee held it at that level on 17 September 2026, but three of the nine members voted to raise it to 4%.

Fixed mortgage rates are priced mainly from swap rates, which reflect where markets expect interest rates to go, not where they are today. Since the energy price shock, inflation has picked up. CPI was 3.1% in August 2026, according to the ONS consumer price inflation bulletin, and the Bank expects it to reach around 3.75% by the end of the year and slightly above 4% in early 2027. Markets now expect rates to stay higher for longer, and lenders have raised fixed rates to match.

That is why the average two-year fix rose by more than 0.2 percentage points in a month, with Bank Rate unchanged.

What does a higher rate mean in pounds?

If you fixed at a much lower rate two or five years ago, your next deal is likely to cost noticeably more. Use our remortgage calculator to see the effect on your own balance.

Should you fix or choose a tracker right now?

There is an unusually large gap between average variable and fixed rates: around 4.55% against nearly 6%. That gap is the market’s bet that rates will rise.

• A fixed rate gives certainty. You pay more now, but you are protected if Bank Rate goes up.
• A tracker is cheaper today. Your payments rise straight away if Bank Rate rises. Some trackers have no early repayment charges, so you can move to a fix later.

Neither is automatically right. It depends on how much a rise in payments would hurt your budget. We can show you both side by side.

What should you do if your deal ends in the next six months?

1. Secure a rate now. Many lenders let you lock in a new deal up to six months before your current one ends. See our remortgage timing guide.
2. Keep watching. If rates fall before your new deal starts, it is often possible to switch to a cheaper product, with the same lender or another.
3. Compare your lender’s product transfer with the wider market. See our product transfer vs remortgage guide.
4. Avoid the standard variable rate. Make sure the new deal starts the day the old one ends.
5. Check any early repayment charge before leaving a deal early. The FCA rules in MCOB 12.3 require these charges to be a reasonable estimate of the lender’s costs, but they can still run to thousands. Our guide to remortgaging with an early repayment charge explains the maths.

What should you do if you are buying?

• Check affordability early. Lenders test affordability against the rate you will pay, so rate rises can reduce what you can borrow.
• Get an agreement in principle, then move quickly once your offer is accepted. Mortgage offers usually lock in your rate for several months.
• Look at the deposit thresholds. Rates usually drop at 60%, 75%, 85% and 90% loan-to-value. A small top-up to your deposit can move you into a cheaper band. See our first-time buyer deposit guide.

Which situations do lenders see most?

These are illustrative situations, not Option Finance client outcomes.

What decides the rate you are offered?

Averages are a guide. Your own rate depends on:

• Loan-to-value. The more equity or deposit you have, the lower the rate.
• Fees. A lower rate often comes with a higher arrangement fee. Compare the total cost over the deal, not the headline rate.
• Deal length. At the moment two- and five-year fixes are priced almost the same on average, so a longer fix costs little extra for more certainty. Check the early repayment charges if you might move or sell.
• Your circumstances. Credit history, income type and the property can all move you to a different lender and rate. See our bad credit remortgage guide and our guide to remortgaging when self-employed.

Frequently asked questions

Speak to Option Finance about today’s rates

Tell us your balance, your property value and when your deal ends. We will tell you straight what rate is realistic for you and whether to lock in now.

Book a free initial consultation using the enquiry form below. See our remortgage advice, first-time buyer mortgage advice and guide to costs and fees when remortgaging.