Mortgage rates in the UK have been on a gradual downward trend through 2026 as the Bank of England continues to cut its base rate from the highs seen in recent years. For millions of homeowners and first-time buyers, this is genuinely good news — but the picture is more nuanced than the headlines suggest.

📋 Key points
  • Should you fix now or wait?
  • First-time buyers in 2026

The Bank of England base rate currently sits at 3.75%, down from a peak of 5.25% in 2023. Major lenders including Halifax, Nationwide, HSBC and Santander have all reduced their fixed-rate deals in response, with two-year fixes now available from around 4.3% and five-year fixes from around 4.1% for borrowers with larger deposits.

Should you fix now or wait?

This is the question on the lips of every homeowner coming off a fixed deal. The honest answer is that nobody knows for certain where rates will go next, including the Bank of England itself.

What we do know is that markets currently expect the base rate to fall further through 2026 and into 2027. If that happens, mortgage rates should follow. However, global economic events — trade tensions, energy prices, inflation surprises — can change the picture quickly.

If you are coming to the end of a fixed deal in the next six months, it is worth starting to look at remortgage options now. Most lenders allow you to lock in a rate up to six months before your current deal ends, giving you certainty without committing immediately.

First-time buyers in 2026

For first-time buyers, the combination of falling rates and several government support schemes makes 2026 a more accessible market than the past few years. The mortgage guarantee scheme and various shared ownership options remain available in England, Scotland and Wales.

Always use a whole-of-market mortgage broker rather than going direct to a single lender. A broker can search hundreds of deals and will often find rates not available on the high street.

Bottom line

Mortgage rates are falling but remain higher than the historic lows of the early 2020s. Whether you fix now or wait depends on your personal circumstances, but getting proper independent advice from an FCA-regulated mortgage broker is always the right first step.