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NEWS: Are Mortgage Rates Going Down? [February 2026]
The Bank of England has voted to hold the base rate at 3.75% on 5th February 2026.
This move is aimed at supporting economic stability and encouraging growth across the UK. Over the past 12 months, the Bank’s approach has been to steadily reduce the base rate in response to inflationary pressures and the broader cost of living crisis.
Economic recovery has been slow but steady: the UK economy has grown by 1.4% in 2025 following a small growth in 2024. For homeowners and buyers, the gradual lowering of the base rate offers relief as borrowing costs start to ease.
The Autumn Budget towards the end of 2025 added further context for the property market. Measures such as the new Mansion Tax, increased property income taxes for landlords, and changes to business rates and local tourist taxes create a more complex environment for buyers and investors.
While these measures may increase costs or influence affordability, the base rate easing has already begun to prompt lenders to offer sub-4% mortgage rates for the first time since 2023, providing opportunities for buyers and remortgagers to secure more competitive deals.
Here’s a snapshot of the best mortgage rates on the market currently (updated live), so you can see how the lowest rates are shaping up in the wake of these recent developments:
And to get a free quote today:
There are now several major lenders, including Nationwide, offering 6x salary mortgages as well as sub 4% rates.
While it’s likely that interest rates won’t return to the uber-low levels we saw before 2022, five-year fixes dropping consistently across the board is certainly a sign that there are more reductions to come.
So what does this mean for mortgage rates and affordability going forward?
In this post, we provide expert insight into the latest thoughts from our mortgage brokers, along with insight into what mortgage rates will do next, and how a decrease in mortgage rates could affect your repayments.
Skip to:
What Caused Interest Rates to Rise Last Year?
How is The Mortgage Market Affected By Interest Rates?
What Mortgage Types Are Most Affected By Interest Rate Changes?
Are Mortgage Rates Going Down Now?
What Do Lower Mortgage Rates Mean for First Time Buyers?
How Can You Find an Affordable Mortgage in 2024?
What Do Our Experts Say?
George Abouzolof
Senior Finance Broker CeMAP
In February 2026, the Bank of England has decided to hold the base rate at 3.75%, following a drop from 4.00% in late 2025. Consecutive drops are very rare, so this comes as no surprise.
Measures announced in the Budget are expected to place some pressure on household spending, which can help ease inflation over time.
Mortgage borrowers may see some lenders increase rates very slightly in the short term, but the Bank of England's stance is to continue cutting the Base Rate through 2026, which will likely ease borrowing rates in the longer term.
How is the Mortgage Market Affected By Interest Rates?
Here are 4 tables comparing some of the best mortgage rates available on the market since March 2024.
You can see how the mortgage market has changed over the last 24 months, and where mortgage rates sit currently:
November 2025
| Term | Product | Type | LTV | Rate | Subsequent Rate | Product Fee | ERC |
| 2 years | Fixed | Remortgage | 60% | 3.83% | 6.99% | £995.00 | Yes |
| 5 years | Fixed | Remortgage | 60% | 3.89% | 6.74% | £999.00 | Yes |
| 10 years | Fixed | Remortgage | 60% | 4.39% | 6.74% | £999.00 | Yes |
May 2025
| Term | Product | Type | LTV | Rate | Subsequent Rate | Product Fee | ERC |
| 2 years | Fixed | Remortgage | 60% | 3.99% | 7.24% | £999.00 | Yes |
| 5 years | Fixed | Remortgage | 60% | 3.99% | 7.24% | £999.00 | Yes |
| 10 years | Fixed | Remortgage | 60% | 4.49% | 7.24% | £999.00 | Yes |
| Term | Product | Type | LTV | Rate | Subsequent Rate | Product Fee | ERC |
| 2 years | Fixed | Remortgage | 60% | 3.89% | 6.80% | £999.00 | Yes |
| 5 years | Fixed | Remortgage | 60% | 3.79% | 5.80% | £490.00 | Yes |
| 10 years | Fixed | Remortgage | 75% | 4.69% | 5.60% | £999.00 | Yes |
March 2024
|
Term
|
Product
|
Type
|
LTV
|
Rate
|
Subsequent Rate
|
Product Fee
|
ERC
|
|
2 years
|
Tracker
|
Purchase
|
60%
|
4.44%
|
8.74%
|
£0
|
No
|
|
5 years
|
Fixed
|
Remortgage
|
60%
|
4.24%
|
7.99%
|
£490.00
|
Yes
|
|
10 years
|
Fixed
|
Remortgage
|
75%
|
4.63%
|
7.99%
|
£999.00
|
Yes
|
Source: Moneyfacts
When interest rates rise, it becomes more expensive for consumers to borrow money. Naturally, this includes mortgages. Higher interest rates have an impact on the property market in a number of ways:
- Lower demand: Higher interest rates can make mortgages less affordable for first time buyers, leading to lower demand for homes.
- Reduced affordability: Rising rates also affect second property buyers and BTL investors. Their mortgage payments could go up, meaning they may need to raise rent to compensate. Or, their projected rent won't meet the affordability for a mortgage on a new investment property, so they don't buy, reducing demand.
What Mortgage Types Are Most Affected By Interest Rate Changes?
If you have a mortgage with a variable interest rate, you will have seen your mortgage costs go up since 2022-23.
However, if you're on a fixed-rate mortgage, you might have yet to see changes, depending on the length of your term. But you could still be stung when your deal ends and you do remortgage.
Currently, many homeowners are coming to the end of a low fixed-rate mortgage that they secured in 2021-2023, and are waiting with bated breath in hopes that rates will drop before they need to remortgage on a new deal.
Monthly increases in mortgage payments have been more acute for those whose fixed-rate mortgages ended and they have automatically switched to their provider's SVR (standard variable rate), these are typically the most expensive interest rates to pay.
We always recommend speaking to an independent mortgage broker about your options at least 6-months before your existing fixed rate ends. This is to avoid moving onto an SVR.
Related: What is a Green Mortgage, and how do they work?
Are Mortgage Rates Going Down Now?
The Bank of England's base rate drop in December 2025 means we have seen mortgage rates drop to the most favourable levels since 2023. February's decision to hold the rate at 3.75% should have no significant impact on this.
Fixed rates have fallen under 4% again, and we could see further reductions if another base rate cut comes later in the year.
Last year, the demand for mortgages was lower, with many prospective buyers holding off until the market was more stable and many would-be buyers simply unable to afford homes amid the elevated costs. As a result, lenders became more competitive over the smaller mortgage demand, lowering results to attract business.
Related: How bridging loans can help you plug a funding gap and secure your property.
What Do Lower Mortgage Rates Mean for First Time Buyers?
With favourable mortgage rates favailable, it is a good time to secure yourself a fixed rate deal.
The best strategy is to consolidate your finances, understand your borrowing power, and seek a mortgage broker's help to find the best deal for your circumstances.
How Can You Find an Affordable Mortgage in 2026?
Despite current optimism about mortgage rates, deciding on the best option can be daunting and confusing.
We can help you compare mortgage products and their cost to find the best deal based on your specific situation from a wide range of lenders nationwide.
Our mortgage experts have their finger on the pulse of the latest mortgage market news. Whether you're a first-time buyer, looking to refinance, or investing in a buy-to-let opportunity, we can help you understand your mortgage options so you feel confident you're making the right choice.
We also have strong relationships with private banks and other specialist lenders which may be able to provide options unavailable from the main high-street providers.
To see what we can do for you, give us a call at 0203 900 4322 or book a free consultation below.
