Where are mortgage rates in 2026?
After the sharp rate rises of 2022 and 2023, UK mortgage rates have been gradually easing as the Bank of England has reduced the base rate from its 5.25% peak. In 2026, the best 2-year fixed rates from mainstream lenders sit in the 4%–4.5% range, while competitive 5-year fixes are available from around 4.2%–4.7%. Rates vary considerably depending on your loan-to-value (LTV) ratio, income, and credit profile.
For context, Standard Variable Rates at most major lenders are still running at 7%–8.5% — meaning anyone sitting on their lender's default rate is paying significantly more than they need to. If you are on the SVR, the case for remortgaging now is very strong regardless of where rates go from here.
The Bank of England base rate: what the market expects
The Bank of England base rate influences — but does not directly set — the mortgage rates that lenders offer. Mortgage pricing is driven more by swap rates (the rates at which lenders borrow money in the money markets) than by the base rate alone.
In 2026, market expectations are for gradual further cuts to the base rate over the next 12–18 months, though the pace and timing remain uncertain. Inflation, wage growth, and global economic conditions all play a role. Economists have been repeatedly surprised in both directions over the past few years.
The key implication: even if the base rate does fall further, mortgage rates may not fall by the same amount — or at the same pace. Lenders have already partially priced in expected cuts. Waiting for rates to drop significantly from current levels is a gamble, not a certainty.
- Base rate cuts are expected but pace is uncertain
- Swap rates (which drive mortgage pricing) may already reflect much of the anticipated cuts
- A 0.25% base rate cut typically translates to a much smaller reduction in fixed mortgage rates
- No one can predict exactly where rates will be in 6 or 12 months
The real cost of waiting on your SVR
This is the calculation most people underestimate. If your fixed rate has ended and you are now on the SVR, every month you wait costs real money.
Suppose your outstanding mortgage is £220,000 and your lender's SVR is 7.5%. A new 5-year fix at 4.4% would cost you approximately £1,220 per month. On the SVR, you are paying approximately £1,540 per month — a difference of £320 per month, or £3,840 per year.
If mortgage rates fell by 0.5% over the next 6 months — which would require significant base rate cuts and not all of that passing through to fixed rates — you might secure a deal at 3.9% instead of 4.4%. The saving over 5 years would be around £165 per month, or £9,900 total. But you would have paid an extra £1,920 on the SVR while you waited. The net gain from waiting 6 months would be less than £8,000 spread over 5 years.
In most scenarios, acting promptly beats speculative waiting — particularly when rates are already well below their recent peaks.
When does waiting actually make sense?
There are genuine situations where holding off on remortgaging is the right call:
You are inside an early repayment charge window
If your current fixed deal runs for another 12–18 months and has a significant ERC (say, 3–4% of your loan), breaking early to remortgage may cost more than it saves. In this case, waiting until your deal expires — or until the ERC reduces to a manageable level — makes sense. We can model the numbers for you.
Your LTV is about to improve significantly
If your property value has risen or your loan balance has reduced to the point where you are close to a better LTV bracket (for example, dropping from 75% LTV to 60% LTV), it can be worth waiting a few months to cross that threshold. Lower LTV means access to lower rates — the saving on the rate can outweigh a short period on the SVR.
You are about to sell or move
If you are planning to sell your property within 6–12 months, committing to a new fixed rate with an ERC may not be sensible. A short tracker mortgage with no early repayment charges could be a better option — giving you flexibility while still getting you off the SVR.
Why using an independent broker makes the decision clearer
The "remortgage now or wait" question has a different answer for every borrower, depending on their current rate, outstanding loan, LTV, ERC position, and financial plans. There is no universal right answer — but there is almost always a right answer for your specific situation.
At Mortgage International, we model both scenarios for you: what remortgaging now would save, versus the cost of waiting and the realistic range of future rates. We search deals from over 90 lenders and have access to exclusive rates not available on the high street or comparison sites. Our advice is genuinely independent — we are paid the same regardless of which lender you choose.
A 30-minute conversation with one of our advisers will give you a clear view of what acting now would achieve, and whether waiting is likely to be worth it in your case.