Where rates stand right now
The Bank of England base rate has been held at 3.75% since December 2025, most recently confirmed at the Monetary Policy Committee meeting of 18 June 2026 (Source: Bank of England, Monetary Policy Summary, June 2026). As at July 2026, average UK fixed mortgage rates stand at around 5.5% for both 2-year and 5-year fixes — unusually close together — while the average standard variable rate, which borrowers are moved onto automatically when a fixed deal ends, sits considerably higher at around 7.1% (Source: HomeOwners Alliance / Mortgage Advice Bureau rate tracker, July 2026). Mortgage rates move frequently; please ask us for current figures rather than relying on any published average.
That gap matters enormously if your current deal is ending. On a typical £200,000 mortgage, moving from a fixed rate onto the standard variable rate can add several hundred pounds to your monthly payment — money that, in most cases, can be avoided simply by arranging a new deal before the old one expires.
Around 1.8 million fixed-rate mortgage deals are due to expire in 2026 (Source: UK Finance, Mortgage Market Forecasts, December 2025) — many of them taken out in 2021 or 2022, when rates were significantly lower than today. If your deal is among them, the earlier you start comparing options, the more choice you typically have, since some of the best rates are reserved for borrowers who lock in a deal several months ahead of their current one ending.
Fixed, tracker, or variable: what's the difference?
| Type | How it works | Best suited to |
|---|---|---|
| Fixed rate | Rate stays the same for the deal period, regardless of base rate changes | Those who want certainty over monthly payments |
| Tracker | Rate moves directly in line with the Bank of England base rate, plus a margin | Those comfortable with payments changing, betting on rates falling |
| Discounted variable | A discount applied to the lender's standard variable rate, which can change | Short-term flexibility, often with lower early exit penalties |
| Standard variable (SVR) | The lender's default rate, applied automatically once a deal ends | Rarely the best choice — usually best avoided by remortgaging in time |
Within the fixed-rate market specifically, 2-year and 5-year deals currently sit close together in price, which is unusual by historical standards. A 5-year fix can offer five years of payment certainty for very little extra cost compared with a 2-year fix — though if you expect to move home or remortgage sooner, the shorter term avoids early repayment charges.
Why a mortgage adviser makes the difference
For most people, buying a home is the largest single financial commitment they will ever make, and getting the decision wrong can be expensive. Trying to compare deals from the hundreds of lenders on the market is genuinely difficult to do alone — and even finding a deal that looks attractive doesn't guarantee you'll be accepted, since lending criteria vary considerably between lenders.
- Whole-of-market search — comparing deals across the entire mortgage market rather than a single lender's range.
- Affordability and eligibility checks — understanding which lenders are actually likely to accept your application before you apply.
- Rate type guidance — explaining fixed, tracker, discounted, and variable options clearly, in plain language.
- Repayment strategy advice — covering the different ways a mortgage can be repaid and which suits your circumstances.
- Remortgage timing — helping you act with enough lead time to avoid defaulting onto a lender's standard variable rate.
Your property may be repossessed if you do not keep up repayments on your mortgage.