UK Mortgage Rates Explained
The figures below are Bank of England market statistics for August 2026, retrieved 2026-10-02. They are not products you can apply for.
These are Bank of England averages. Choosing one does not create a new page.
IUMB482 · August 2026
5.16%
One month +0.09 percentage points. Twelve months +0.61 percentage points.
Using this statistical average as an example rate, £200,000 over 25 years is £1,187.90 a month before fees. A lender would set its own rate. LTV calculator · Speak to a mortgage broker
| LTV | Quoted average | Month | Change on year |
|---|---|---|---|
| 60% | 4.79% | August 2026 | +0.86 percentage points |
| 75% | 4.92% | August 2026 | +0.82 percentage points |
| 85% | 5.02% | August 2026 | +0.81 percentage points |
| 90% | 5.16% | August 2026 | +0.61 percentage points |
| 95% | 5.52% | August 2026 | +0.52 percentage points |
| LTV | Quoted average | Month | Change on year |
|---|---|---|---|
| 60% | 4.62% | August 2026 | +0.59 percentage points |
| 75% | 4.78% | August 2026 | +0.67 percentage points |
| 90% | 4.95% | August 2026 | +0.52 percentage points |
| 95% | 5.36% | August 2026 | +0.5 percentage points |
See approvals and the rates people are actually paying.
Bank of England Bank Rate
3.75%
In effect since 18 December 2025. Bank of England · checked 2 October 2026. Latest unchanged decision: 17 September 2026. Next scheduled decision: 5 November 2026. Bank Rate history.
Bank Rate is the Bank of England's own rate, not a mortgage you can apply for. Lender products change, and a rate you see advertised may not be available to you. This page is research, not regulated mortgage advice.
A quoted average is not a rate you can get
The Bank of England average is a monthly weighted figure across lenders' advertised products at a stated loan-to-value. Two people on the same day can be offered different prices because of fees, income, credit, the property and the exact product. This page does not call any figure the best rate, today's rate, or a MortgageConnector rate.
How LTV bands affect product choice
Loan-to-value is the mortgage divided by the property's value. A £225,000 mortgage on a £250,000 home is 90% LTV. Crossing a band can change the products available, but a larger deposit is not automatically the best decision if it leaves you without adequate savings for fees or emergencies.
| LTV band | Equivalent deposit | What it usually means |
|---|---|---|
| 95% | 5% | Small deposit; fewer products and usually higher pricing than lower-LTV bands. |
| 90% | 10% | Often a meaningful increase in lender choice compared with 95% LTV. |
| 85% | 15% | A further common pricing boundary with a broader mainstream product range. |
| 80% | 20% | More borrower equity and usually wider product choice. |
| 75% | 25% | A common lower-LTV band used in residential mortgage pricing. |
| 60% or less | 40% or more | Largest equity buffer; often among the lender's most competitive bands. |
Compare the total cost, not only the headline rate
- Monthly payment: based on balance, rate, term, and repayment type.
- Product fee: paid upfront or added to the mortgage, where interest may then apply.
- Incentives: cashback, free valuation, or legal work can offset part of the cost.
- Early repayment charge: important if you may sell, refinance, or make large overpayments.
- Reversion rate: the rate used after the initial deal unless you switch.
- APRC: useful context, but based on assumptions that may not match how long you keep the product.
Fixed, tracker, and variable products
A fixed rate keeps the product rate unchanged for an agreed period. A tracker usually moves with a stated benchmark such as Bank Rate plus a margin. Other variable rates can move at the lender's discretion. Compare payment certainty, flexibility, fees, and early repayment terms, not a forecast of where rates might go.
See how the numbers change
Use the mortgage repayment calculator for monthly payments and the LTV calculator to test deposit bands. Calculator results are illustrations, not offers. An FCA-authorised broker can then confirm products for your circumstances.
Frequently asked questions
What is the current Bank of England Bank Rate?
Bank Rate is 3.75%, in force since 18 December 2025. The series was observed on 1 October 2026 and retrieved on 2 October 2026. The next scheduled decision is 5 November 2026. Bank Rate is not the mortgage rate offered to an individual borrower.
What is the current UK mortgage rate?
There is no single mortgage rate a person can get. The Bank of England publishes monthly quoted averages. In August 2026 the 2-year fixed 90% LTV quoted average was 5.16%. That is a market statistic, not a product available today.
Should I choose a two-year or five-year fixed mortgage?
A shorter fix gives you an earlier opportunity to review but may expose you to another product fee and future rate uncertainty sooner. A longer fix provides payment certainty for longer but can carry early repayment charges if your plans change. Suitability depends on the total cost and your expected timeline.
Why does loan-to-value affect mortgage rates?
A lower LTV gives the lender a larger equity buffer, so lenders usually offer a wider and more competitive product range. Pricing commonly changes at band boundaries such as 95%, 90%, 85%, 80%, 75%, and 60% LTV.
Is the lowest interest rate always the cheapest mortgage?
No. Product fees, valuation fees, incentives, cashback, the fixed period, and the mortgage balance can change the total cost. Compare the cost over the period you expect to keep the product and review the APRC without treating it as the only decision measure.
Compare products for your circumstances
MortgageConnector can introduce you to one FCA-authorised broker. The service is free for consumers.
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