Mortgage rates
Mortgage rates in October 2026: what lenders are advertising
This is a snapshot of the mortgage rates twelve of the UK's largest lenders were advertising at the start of October 2026: 145 deals from banks and building societies, taken from the lenders' own rate pages and rate sheets. Rates move every week, so for today's figures use the rate comparison, which we update every Monday.
The headline numbers
- 2 year fixes started at 4.93%, with a typical (median) rate of 5.33% across all deposit sizes.
- 5 year fixes started at 4.98%, typical 5.35%. Five year deals cost almost exactly the same as two year deals.
- Trackers started at 4.06%, typical 4.19%, about a percentage point below fixed rates.
- Standard variable rates, which you move to when a deal ends, ranged from 5.74% to 7.74%, typically 6.54%.
Rates by deposit size
Your deposit, or your equity if you are remortgaging, decides which loan to value (LTV) band you are in, and that matters more than which lender you pick:
| Loan to value | 2 year fix from | 2 year typical | 5 year fix from | 5 year typical |
|---|---|---|---|---|
| 60% (40% deposit) | 4.93% | 5.13% | 4.98% | 5.09% |
| 75% (25% deposit) | 5.13% | 5.29% | 5.10% | 5.23% |
| 85% (15% deposit) | 5.31% | 5.33% | 5.19% | 5.29% |
| 90% (10% deposit) | 5.32% | 5.49% | 5.31% | 5.47% |
| 95% (5% deposit) | 5.64% | 5.79% | 5.54% | 5.72% |
The biggest step is between 95% and 90%. On a £200,000 loan over 25 years, the typical two year rate at 95% (5.79%) costs £1,263 a month, against £1,227 at 90% (5.49%) and £1,203 at 75% (5.29%). Having a bigger deposit also means borrowing less, so the real saving is larger still.
Fee or no fee
Deals with a product fee, usually around £1,000, were typically 0.1 to 0.2 percentage points cheaper than fee-free deals at the same deposit size. Whether that is worth paying depends mostly on how much you borrow: for loans below roughly £250,000 to £300,000 on a two year deal, the fee-free option often works out cheaper overall. Compare the total cost over the deal, not just the rate.
Why fixed rates are well above base rate
The Bank of England held its base rate at 3.75% in September, but by six votes to three: three members wanted to raise it to 4%. Inflation was 3.1% in August and the Bank expects it to rise above 4% in early 2027 because of higher energy prices. Its next decision is on 5 November.
Fixed rates are not set by today's base rate but by what lenders expect rates to do over the length of the deal, plus their own costs and margins. With the risk of a rise on the table, fixes are priced well above base rate, while trackers, which move with it, are cheaper today.
A tracker is cheaper now, but you carry the risk. If base rate rose by a full percentage point, a typical tracker would cost about the same as a typical fix.
On £200,000 over 25 years, a typical 60% tracker at 4.17% costs £1,075 a month. If base rate went up by 0.5 points, that would rise to £1,131; up a full point, to £1,189, slightly more than a typical 2 year fix at 5.13% (£1,184). A tracker suits people who can absorb rises, or who think rates are more likely to fall; a fix suits those who value a certain payment.
Buying or remortgaging?
Purchase deals were slightly cheaper than remortgage deals at the same deposit, typically by around 0.1 points: lenders compete hard for new buyers. If you are remortgaging, also get your current lender's product transfer offer, which is not included here.
And if your deal is ending, the most important comparison is not between lenders at all. On £200,000, moving onto a typical standard variable rate of 6.54% would cost £1,355 a month, around £170 more than a typical new fix.
Today's rates
These figures are a snapshot from 5 October 2026. The rate comparison shows the deals currently advertised for your deposit and circumstances, with the monthly payment and total cost of each, and is refreshed every Monday.