Mortgage rate predictions 2026: Are mortgage rates going down?

The Bank of England has raised interest rates for the first time since August 2023. We examine the latest mortgage rate predictions for 2026 and 2027, and what the outlook means if you’re buying or remortgaging.

Are mortgage rates going down?

• Some lenders have cut selected fixed mortgage rates in recent days, and average fixed rates have edged down slightly. These small reductions offer some relief after sharp increases in September and early October.
• However, mortgage rates remain high with average 2 and 5 year fixed rate mortgages hovering at around 6%.
• The Bank of England increased the base rate from 3.75% to 4% on 5 November, its first rise since August 2023. Governor Andrew Bailey has signalled another increase may be needed, but cautioned against expecting a long series of rises.
• This follows September’s increase in inflation to 3.5%, up from 3.1% in August. However, the widely expected base rate rise was already largely reflected in fixed mortgage pricing, so it does not automatically mean new fixed deals will become more expensive.
• Borrowers whose mortgages track the base rate will see their rates increase in line with the rise. Payments on existing fixed deals won’t change during the fixed period.
• Homeowners whose deals end in the next six months are being urged to review their mortgage options as soon as possible. If you speak to a mortgage broker, you can lock in a rate then keep it under review in case rates improve before you need to switch.

Mortgage rate predictions 2026

• In early November 2026, some lenders have cut selected fixed mortgage rates and averages have edged down slightly. However, average 2 and 5 year fixed rates remain close to 6%, following sharp increases in September and early October.
• Further mortgage rate rises could follow, although fixed rates already reflect expectations about future interest rates and the outlook remains uncertain.

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Recent key developments in November 2026:

• Average fixed mortgage rates remain close to 6%: The latest Moneyfacts figures reported ahead of the 5 November decision put the average 2 year fixed rate at 5.97% and the average 5 year fixed rate at 5.99%. Some lenders have cut selected deals in recent days, offering small reductions after earlier increases.
• The Bank of England increased the base rate from 3.75% to 4% on 5 November. Borrowers whose mortgages track the base rate will see their rates rise, while payments on existing fixed deals will stay the same during the fixed period.
• The Bank now forecasts inflation will reach 4.9% in the second quarter of 2027, up from September’s 3.5%. Higher inflation could keep interest rates higher for longer. However, fixed mortgage pricing depends partly on how the outlook changes compared with what markets already expect.
• The outlook remains uncertain. If you need to remortgage in the next six months, speak to a mortgage broker to explore your options. You could lock in a rate, then keep it under review in case rates improve before you need to switch.
• This uncertain mortgage picture comes as little surprise to the UK public. In our 2026 research, we found that around a quarter of Brits expect rates to rise (23%) and a similar proportion think they will fall (25%), while 28% expect them to stay the same and 24% are unsure, reflecting broader economic anxiety and confusion. 

Latest mortgage market update (9 November 2026)	Latest
Bank of England base rate	4%. Increased from 3.75% on 5 November.
Average 2 year fixed rate	5.96%
Average 5 year fixed rate	5.99%
Economists’ expectations	Financial markets have priced in three further rate rises during 2027. Economists generally expect fewer increases, with some predicting another rise in February followed by cuts later in the year.
Next Bank of England decision	17 December 2026
Interest rate outlook	Andrew Bailey has signalled another rise may be needed, but has cautioned against expecting a long series of increases. Economists generally expect fewer rises than financial markets have priced in.

Expert view on mortgage rate predictions

“While future bank rate rises are expected before summer next year, no one knows exactly how many increases there will be or how quickly they might happen. The one silver lining is that last week’s Budget hasn’t caused the market disruption some feared, which is welcome. Swap rates have eased from their recent highs, although they remain above where they were a month ago.“

“But there are always external factors impacting the markets and the mortgage rates homeowners will pay. Recent government advice for homeowners to stockpile supplies in case of severe weather or cyber attacks is a reminder that we can’t control everything happening in the wider world. What we can do is get organised with our mortgage and seek advice early, rather than leave it until the last minute.”

Get fee-free, mortgage advice from award-winning mortgage brokers Mortgage Advice Bureau. Lock in a rate, then keep under review in case rates fall before you need to switch.

Will mortgage rates go down in 2026?

• Mortgage rates had been falling, but that trend reversed in September and early October, when many lenders increased fixed rates. Some lenders have since cut selected deals and average fixed rates have edged down slightly. However, these are small reductions after recent increases.
• Fixed rate mortgage pricing is heavily influenced by market expectations for interest rates. November’s increase in the base rate to 4% was widely expected and already largely reflected in fixed mortgage pricing.
• What happens next will depend partly on whether expectations change about further interest rate rises. Competition between lenders can also help bring selected rates down, but there is no guarantee mortgage rates will fall further before the end of 2026.

What was expected for mortgage rates in 2026 before the conflict?

Experts had predicted that the brighter rate outlook forecast prior to the Middle East conflict would see more base rate cuts in 2026. Had this happened, it was predicted that fixed mortgage rates could fall to 3.20-3.30% and there was even some speculation fixed mortgage rates close to 3% may have been a reality.

However, the recent unrest has ripped up those forecasts in the near term and underlines the risks in pinning hopes on market predictions, say experts. Instead, it’s advisable to shop around as normal and then keep rates under review as you near completion. That protects against any rise but allows you to move to a lower rate if they do drop.

Mortgage rate predictions for 2027 and beyond

Looking further ahead, mortgage rate predictions for 2027 are very difficult to make due to the varying factors that influence what happens with mortgage rates, including what the Bank of England decides to do with interest rates.

At a glance: UK mortgage rate outlook 2026–2027

Predicting mortgage rates over the next couple of years has become more difficult. Recent events in the Middle East have pushed up oil and gas prices and caused financial markets to reassess the outlook for interest rates, making the outlook for 2026 and 2027 more uncertain.

Based on market expectations and economists’ forecasts in early November 2026:

• Interest rate predictions vary: Andrew Bailey has indicated another increase may be needed unless inflation risks ease, but has not committed to December or February. On 6 November, Huw Pill said financial markets were expecting three further rate rises, although there could be more or fewer. Economists generally expect fewer. Fixed mortgage rates could ease if expectations for future interest rates fall.
• The longer-term mortgage rate outlook is unclear, as many factors are at play. Fixed mortgage rates could fall if expectations for future interest rates ease, but there is no certainty about when this might happen.

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Is 2026 a good time to remortgage?

For many borrowers, 2026 could be a good time to remortgage, but it will depend on your personal circumstances. Here’s what you need to consider:

• Check your current mortgage deal’s end date: If it ends in the next six months you should start the remortgage process. If you remortgage, you can avoid rolling onto your lender’s standard variable rate, which can be very expensive.
• Get fee-free mortgage advice. You can lock in a rate then keep it under review to see if there are any better options you could swap onto before your current deal ends. Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
• Already on the SVR?: If you’re currently on your lender’s standard variable rate, you should urgently review your remortgage options because typical SVR rates may be significantly higher than the best mortgage deals available for you if you remortgage.

How can I secure the best mortgage rate in the current market?

• Act now: If you’ve got up to 6 months before your current mortgage deal ends you can act now. Speak to the expert advisers at Mortgage Advice Bureau. They’ll search over 100 lenders to find the best deal for you and can talk through options like fixed rate mortgages and tracker mortgages.
• Lock in a rate: When rates are volatile, it’s advisable to lock into a deal now in case the best deals disappear.
• Keep your rate under review to see if there are any better options you could swap onto before your current deal ends.
• Avoid overpaying: By starting the remortgage process early, you’ll reduce the risk of accidentally falling onto your lender’s expensive standard variable rate.

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Interest rates: Latest news in November 2026

The conflict in the Middle East has had a major impact on interest rate predictions in the UK.

• The Bank of England increased the base rate from 3.75% to 4% on 5 November, its first rise since August 2023.
• Eight members of the Monetary Policy Committee backed the quarter-point increase. Catherine Mann wanted a larger rise to 4.25%, meaning all nine supported raising rates.
• Higher energy costs were central to the decision. The Bank said there was still limited evidence of these costs feeding into wider price and wage increases, but judged that inflation pressure was building. Stronger-than-expected economic activity also supported the rise.
• Andrew Bailey indicated another increase may be needed unless inflation risks ease. However, he cautioned against treating November’s decision as the start of a long series of rises.
• The Bank’s chief economist Huw Pill said on 6 November that financial markets expect three more interest rate rises. But he warned there could be more or fewer, depending on what happens to the economy.
• He said the rise in energy prices has been smaller than in 2022, so a repeat of that year’s string of rate increases is unlikely. By spring 2027, the Bank expects a clearer picture of whether higher energy costs are pushing up other prices and wages. This will help it decide whether to raise interest rates further.
• The next Bank of England interest rate decision is due on 17 December 2026.
• Before the Middle East conflict began, the Bank was widely predicted to make two interest rate cuts in 2026.

Economists’ interest rate predictions

Interest rate predictions are notoriously difficult at the best of times, but the complexity of the current situation in the Middle East makes it even harder. Forecasts for what’s next for interest rates vary considerably.

Here is a selection of economists’ UK interest rate forecasts for 2026 and 2027, published before the 5 November decision:

• Paul Dales, chief UK economist at Capital Economics, said a November increase could help prevent higher energy costs feeding into wider price and wage rises. If energy prices fall back next year, he expects those pressures to be limited, allowing rate cuts to begin in late 2027 and continue into 2028, eventually taking Bank Rate to 3.5%.
• Oxford Economics’ Andrew Goodwin said: “We now expect the Bank of England to hike interest rates by 25 basis points in November and February, taking Bank Rate to 4.25%.”  
• Fidelity International’s Conor Parle said: “We see it as likely that the MPC will hike at their November and February meetings bringing Bank rate to 4.25% and then they will likely remain on hold for a period – meaning our outlook is for slightly fewer rate hikes than markets currently expect.”
• Bank of America Global Research said it expects the central bank to raise rates by 25 basis points in ​November and February, reversing its previous forecast for rates to ​remain unchanged before a cut in November 2027.

However, what happens with interest rates in 2026 will depend on numerous factors. You can keep up to date by bookmarking our guide to best mortgage rates in the UK or signing up to our weekly newsletter.

Should I fix for 2 or 5 years? 

Shorter mortgages are becoming more popular, according to research by MoneyFacts. It found the number of people comparing 2 year fixed rate mortgages increased from 48.4% in February 2026 to 55.6% in May 2026, while demand for 5 year fixed deals fell from 27.7% to 21.8% over the same time. Searches for 10 year fixed rate mortgages also eased, falling from 6.5% to 4.5%.

Factors when deciding between 2 or 5 year fixed rate mortgage

Whether a 2 or 5 year fixed rate mortgage is best for you will depend on your circumstances.

• You may want to fix for 2 years in the hope that mortgage rates will improve in the near future and that you’ll be able to remortgage onto a cheaper deal once your 2 year deal ends. However, there is no guarantee rates will be lower when your deal ends, so consider whether you could afford higher repayments too.
• Or you may prefer the security of a 5 year term. Or you might opt for a 3 year fix – or a 10 year fix. Read more about your options in our guides Should I remortgage now? and 2 or 5 Year Fixed Mortgage?

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Should I get a fixed mortgage or a tracker?

Choosing between a fixed mortgage, where you’ll pay a fixed rate for a set length of time, or a tracker mortgage where the amount you’ll pay will go up and down in line with the base rate, may seem like a tricky decision. You may also consider a discounted mortgage, this will track below the lender’s standard variable rate.

Fixed rate mortgages pros and cons

• Pro: You’ll pay the same amount on your mortgage for a set length of time.
• Pro: Your rate can’t go up which means you’ll be able to budget more easily.
• Con: But if interest rates go down, your mortgage payments won’t go down in line.

Example:
In November 2026, one of the lowest rates on a 5 year fixed rate mortgage is from Halifax at 4.78% (plus mortgage fees), available at up to 60% LTV. On a £200,000 mortgage over 30 years, monthly payments in the initial term would be £1,047.

Tracker mortgages pros and cons

• Pro: If the Bank of England cuts interest rates, the amount you’ll pay on your mortgage will reduce.
• Pro: Some tracker mortgages let you leave penalty-free during the term which means you could swap to a better deal if mortgage rates improve.
• Con: If interest rates increase in the future your payments will go up.

Example:
A leading 5-year tracker in November 2026 is base + 0.60%. Before the interest rate rise on 5 November, the mortgage rate was 4.35% but this increased to 4.60% following the Bank’s decision. 

On a £200,000 repayment mortgage with 30 years remaining, that means monthly payments would have increased from £995.62 to £1,025.29, an extra £29.67 a month.

Here’s how payments could change if the base rate moves further:

Bank of England base rate	Illustrative tracker rate	Monthly repayment
3.50%	4.10%	£966
3.75%	4.35%	£996
4.00%	4.60%	£1,025
4.25%	4.85%	£1,055

These examples are illustrations and don’t include any mortgage fees.

The best mortgage depends on your personal circumstances. The award-winning expert advisers at Mortgage Advice Bureau will find the right mortgage for you.

How do changes in interest rates affect your mortgage?

The Bank of England sets the base rate and it’s important to homeowners because it acts as a benchmark for the cost of borrowing money. As a general rule, if interest rates fall, mortgage rates will fall too.

How changes in interest rates affect your mortgage depends on your circumstances:

1. You’re taking out a new mortgage

If you’re shopping around for a new mortgage or want to remortgage, generally speaking, the mortgage rates available should improve if interest rates fall. Although this isn’t guaranteed as there are numerous factors that determine the rates mortgage lenders set. So it’s important to get fee-free mortgage advice to make sure you get the best mortgage deal for you.

2. You’re on a fixed rate mortgage

If you’re on a fixed rate mortgage, the amount you’ll pay on your monthly mortgage payments will stay the same during your initial term – usually 2 or 5 years. So your mortgage payments won’t change if interest rates go up or down.

3. You have a tracker mortgage 

There are 510,000 outstanding residential tracker mortgages, according to UK Finance.

If your mortgage tracks the Bank of England base rate, November’s rise from 3.75% to 4% will increase your rate by 0.25 percentage points. Your lender will confirm when your payments change.

• For example, if you have a £200,000 repayment mortgage over 25 years and you’re paying a rate of 5% your monthly payments will be £1,169.
• If interest rates are increased by 0.25%, the mortgage rate you’ll pay will increase to 5.25%. This means your monthly mortgage payments will increase to £1,198 – so you’ll pay £29 more per month.
• But if interest rates are cut by 0.25%, the mortgage rate you’ll pay will fall to 4.75%. This means your monthly mortgage payments will fall to £1,140 – so you’ll pay £29 less per month. 
• Find more worked tracker mortgage examples here.

4. You’re on a discounted variable rate 

While if you’re on a discounted variable rate, you’ll pay a rate that’s lower than the lender’s standard variable rate. Following a base rate change, your payments will depend on whether your lender changes its SVR. It does not have to pass on the full increase or cut.

5. You’re on your lender’s standard variable rate (SVR)

According to UK Finance, there are 470,000 households on their lender’s standard variable rate. If this includes you, your lender may increase its SVR following November’s base rate rise, but the timing and size of any change will depend on the lender.

And if you are on your lender’s SVR, you should know these rates can be extremely expensive, so check your deal now to see if you can save by remortgaging.

6. You have a Buy to Let mortgage

If you’re a landlord renting out a property, Buy to Let mortgage rates can be affected too. If you currently have a Buy to Let mortgage, whether or not you’ll be affected by interest rate changes will depend on whether you have a fixed or variable rate mortgage.

What are the latest UK mortgage rates?

Here are the latest UK mortgage rates if you’re looking for a 2 or 5 year fixed rate mortgage or a 2 year variable rate deal.

Looking for today’s cheapest deals? Read our guide to the Best mortgage rates.

The best mortgage depends on your personal circumstances. The award-winning expert advisers at Mortgage Advice Bureau will find the right mortgage for you.

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Bank of England Base Rate 2020-2026

Global context and economic factors influencing UK mortgage rates

The wider global context and economic factors have an impact on mortgage rates in the UK in a number of ways, for example:

How the Middle East conflict affected UK mortgage rates

• Oil and gas prices soared following the outbreak of the conflict in the Middle East.
• For UK households, wholesale gas prices matter because they are a key driver of domestic energy bills, meaning a prolonged spike could push up costs significantly in the months ahead. Read more in our guide Will energy prices go down in 2026?
• Higher energy costs can also feed into broader inflation, influencing interest rate decisions and, in turn, mortgage pricing.
• Mortgage lenders began increasing fixed rate mortgages, after sharp increases in swap rates. However, this started easing back in April 2026, with some lenders cutting rates.
• Rates fell further following the US-Iran peace agreement, although they started edging back up as hostilities renewed. In September, a renewed rise in swap rates led a number of lenders to increase fixed mortgage rates again.
• This report by UK Finance gives a detailed explanation on what the war in the Middle East could mean for your mortgage.

Impact of Trump’s presidency

• The US president’s various announcements about tariffs continue to cause economic uncertainty. 
• The initial short-term impact on UK mortgage rates was for lenders to trim rates due to predictions the Bank of England would cut interest rates more frequently as a result.
• However, as fears calmed, the number of interest rate cuts predicted was scaled back.

In summary: Global forces like energy prices and US monetary policy can lead to UK mortgage rates going up or down, and these factors can change quickly.

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Mortgage rate forecast 2026 – how much will remortgaging cost?

2 year remortgage costs now vs 2024

If you’re coming off a 2 year fixed rate mortgage, average mortgage rates are higher than two years ago. The average 2 year fixed mortgage rate at the start of November 2024 was 5.39%, according to Moneyfacts. By comparison, the average on 2 November 2026, was 5.97%.

Example costs: You took out a 2 year fix in 2024 vs remortgaging now

Here’s how much you’ll pay at these rates in the initial term if you borrow £200,000 over 30 years:

Monthly payment at November 2024’s average rate of 5.39%	Monthly payment at the latest average rate of 5.97%	Extra cost per month
£1,122	£1,195	£73

5 year remortgage costs now vs 2021

FCA figures show that nearly 1 million 5 year fixed deals that were taken out in 2021 when rates were ultra-cheap, will end in 2026.

The average 5 year fixed rate mortgage in November 2021 was 2.59%. By comparison, the average 5 year fixed rate mortgage on 2 November 2026 was 6.00%.

Example costs: You took out a 5 year fix when rates were cheap vs remortgaging now

Here’s an illustration of how much you’ll pay at these rates if you borrow £200,000 over 30 years.

Mortgage payment at November 2021’s average rate of 2.59%	Mortgage payment at November 2026’s average rate 6.00%	How much more you’ll pay each month
£800	£1,199	£399

But if you do nothing and roll onto your lender’s standard variable rate (SVR), which averaged 7.13% in November 2026, you could pay much more.

Here’s how much you’ll pay on a £200,000 mortgage over 30 years at 7.13%, compared to if you remortgage at November 2026’s average 5 year fix rate of 6.00%.

Mortgage payment at November 2026’s average rate of 6.00%	Mortgage payment at an SVR of 7.13%	How much more you’ll pay each month on the SVR
£1,199	£1,348	£149

These tables are based on average rates. The mortgage rate you may get access to will depend on your circumstances so speak to an expert mortgage broker and they’ll find the best deal for you.

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Remortgage Cost Calculator

Use this mortgage cost calculator to work out the estimated cost of your mortgage at different rates.

Remortgaging in 2026: Our view

Paula Higgins, CEO of HomeOwners Alliance, said:

“And if you’re coming off a cheap fixed rate, don’t let the higher mortgage rates available today put you off remortgaging: if you do nothing when your current mortgage deal ends and roll onto your lender’s standard variable rate you could end up paying hundreds of pounds more each month on your mortgage, depending on your circumstances.”

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Will mortgage rates go down in the UK in 2026?

Mortgage rates rose sharply earlier in October before average fixed rates stabilised. Some lenders have since cut selected deals, while others have increased rates.

The Bank of England increased the base rate to 4% on 5 November. The rise was widely expected and already largely reflected in fixed mortgage pricing, so it does not automatically mean new fixed rates will increase.

What happens next will depend partly on whether expectations change about further base rate rises in 2027.

If you’re waiting to buy your first home, our first time buyer mortgages guide explains how deposits, affordability and mortgage applications work.

Should I wait for mortgage rates to go down before getting a mortgage?

Waiting for mortgage rates to go down before getting a mortgage can be risky for a number of reasons.

• Firstly, nothing with mortgages is certain. So even if experts predict mortgage rates to fall, this may not happen and rates may actually increase.
• Secondly, if your current mortgage deal ends soon, if you decide to wait for mortgage rates to go down before getting a new deal and this means you roll onto your lender’s standard variable rate you could end up paying a lot more.

So if your current mortgage deal ends in the next 6 months, and certainly if it ends in the next 4 months, you should start the remortgage process now instead of waiting in case mortgage rates go down.

By locking in a rate now you can keep it under review in case a better deal comes up before you switch to your new deal. Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.

Should I remortgage with a different lender?

Product transfers are predicted to be increasingly common in 2026. UK Finance, the trade body which represents the banks, said it expects product transfers will grow by 13% this year. Here’s what you should consider when deciding whether to remortgage with a different lender or your existing one.

Pros and cons of switching lenders vs staying with your current one

	Switching lenders	Staying with current lender
Can you access the best mortgage rates for you?	Yes	Not necessarily. You’ll be limited to the rates your lender offers
Do you need a mortgage valuation?	Yes. You may need to pay for it	No
Is there legal work involved?	Yes. You may need to pay for it	No
Is there an affordability check?	Yes	Not usually if you’re borrowing the same amount for the same term
How quick is the process?	Allow 3 months	Generally around a week

When it comes to deciding whether to switch lenders or stay with your current one, make sure you get advice. Speak to a mortgage broker and they’ll find the best deal for your circumstances.

Mortgage cost calculator

Use this mortgage cost calculator to see instantly how much more or less you’ll pay on your mortgage if interest rates increase or decrease.

What does this mortgage rate prediction mean for first time buyers?

• Move fast: If you’re in a position to buy now, it may be a good idea to act fast. When mortgage rates are volatile, you may want to move quickly to snap up the best mortgage rate for you in case it disappears.
• Get advice: Using a mortgage broker can be particularly useful if you’re a first time buyer. They’ll shop around to find the best first time buyer mortgage rates for you and match you to a lender that will be more likely to accept your application. Additionally, they’ll be on hand to answer your questions along the way. Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
• Work out your budget: If you’re just starting your first time buyer journey, find out how much you can afford to borrow for a mortgage and without over-stretching yourself. Read our guide on How much can I afford to borrow on a mortgage? Also, read our guide to the Best first time buyer mortgage rates.
• Build bigger savings: The best mortgage rates are usually for those with the biggest deposits. So see if you could boost your deposit by saving into a Lifetime ISA. Also, go through your budget and see where you can save. As well as helping to increase your deposit it will also show lenders that you can manage your money responsibly.
• Boost your credit score: Your credit rating affects whether your mortgage application will be successful and influences how much your monthly repayments will be. So it’s essential to improve your credit score before you apply for a mortgage. Read our guide 11 Tips to improve your credit score for a mortgage. Read more tips in our guide Mortgage advice for first time buyers.
• You can also see how changing mortgage rates affect first time buyers in our first time buyer mortgages guide.

The best mortgage depends on your personal circumstances. The award-winning expert advisers at Mortgage Advice Bureau will find the right mortgage for you.

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What’s the house price forecast for 2026?

Early house price predictions for 2026 suggest an increase in house prices of 0% – 2%. Read more in our guide House price predictions 2026: How much will prices go up by?

Stay up to date with what’s happening with house prices in our monthly House Price Watch.

What affects the mortgage rate you’ll be offered?

The mortgage rate you’re offered will depend on your personal circumstances as well as what’s happening in the wider mortgage market. Key factors include:

• Size of deposit: The bigger your deposit, the cheaper the mortgage rates you may get access to.
• Good credit rating: The lowest mortgage rates are also usually available to people with a good credit rating. If your credit score is less than perfect, read our guide 11 tips to improve your credit score for a mortgage for advice on how to boost it.
• Length of deal: The rate you’ll pay will also depend on how long you take your mortgage deal out for.

Is it worth speaking to a mortgage broker?

Yes, it’s always worth speaking to a mortgage broker:

• A good broker can save you time, stress and money by finding the right mortgage deal for you – and in many cases, it won’t cost you a penny.

• Mortgage brokers can be used when buying a house, remortgaging and for landlords who need a Buy to Let mortgage. They can be particularly useful for first time buyers unfamiliar with the process and if your case is more complex, such as if you have bad credit or you’re self-employed.
• Mortgage broker fees cost from £0 to thousands of pounds, depending on whether the broker charges fees or not. Some branches of Mortgage Advice Bureau may charge a fee for mortgage advice if you go direct. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed. However, you can get fee-free advice from the expert advisers at Mortgage Advice Bureau by using this site, this form or phone number.

What these mortgage rate predictions mean if you’re on a cheap deal

If you’re currently on a cheap fixed rate mortgage, these mortgage rate predictions may understandably make you feel quite anxious because you’ll likely have to pay a higher rate on your next mortgage.

The average rate on a 5 year fix in early November 2026 was 6.00% which is much higher than the average rate on a 5 year fix in November 2021, which was 2.59%.

So if you’re currently on a cheap fix, here’s what to do:

• If your cheap fix ends soon: Start the remortgage process now. Speak to a mortgage broker who will find the best mortgage deal for you. You may need to pay more for your new mortgage than your existing one – the ultra-cheap rates we’ve seen in recent years are long gone. But you may be able to save a significant amount of money each month by remortgaging onto a new deal compared to if you do nothing and let your mortgage roll onto your lender’s standard variable rate.
• If you’ve still got some time on your cheap deal: Consider taking advantage of the low rate you’re currently on and make overpayments if you can. Overpaying will help to drive down the mortgage balance more quickly, which will mean a smaller mortgage when you remortgage onto a new deal. But make sure to check if your mortgage allows overpayments (most do) and also check if there are limits on how much you can overpay by to avoid having to pay an early repayment charge, and consider whether it’s right for you.

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If you’re worried about higher mortgage rates

If you’re struggling to pay your mortgage you should get help as soon as possible. You’ll find useful advice on the government-backed MoneyHelper website:

How do interest changes affect other types of borrowing?

When it comes to changes in interest rates, other types of borrowing are affected in a similar way. If interest rates go up, borrowing of any type generally gets more expensive, while when interest rates are cut, borrowing generally gets cheaper. However, this is in general terms as the amount you’ll pay on things like credit cards and loans will depend on a number of factors including your credit history.

Interest rate changes and savings

When interest rates go down, lenders usually reduce the amount of interest they’ll pay on savings accounts.

What’s happening to interest rates in other countries?

In recent years, the UK has had one of the highest interest rates in the G7. The European Central Bank (ECB) started to cut its main interest rate for the eurozone in June 2024 from an all-time high of 4%. After a series of cuts it reached 2% in June 2025. However, in June 2026, the ECB raised rates to 2.25% as it reacted to the Iran war, before raising them again to 2.5% in September, reports the BBC.

While the US’s central bank, the Federal Reserve, raised rates for the first time in more than three years in September 2026. Rates were hiked to 3.75%-4% from 3.5%-3.75% 

Mortgage rates and costs methodology

At HomeOwners Alliance the best mortgage rates in our tables are from mortgage brokers Mortgage Advice Bureau and updated regularly. These best mortgage rates do not take into account fees and are for illustration only. The average mortgage rate figures we use are from sources including Rightmove and Moneyfacts.

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Frequently asked questions