On this page
- 2 year fixed with a 10% deposit
- 5.37%
- the same rate a year before
- 4.58%
- quoted fixed rates lower than a year before
- 0 of 9
- Bank Rate now
- 4%
The short answer
Mortgage rates move every month, and the honest answer to whether they are going down is what they have just done. Every month the Bank of England publishes the average rate lenders quote for new fixed-rate mortgages at each loan to value. In September 2026, the latest month published, the quoted 2 year fixed rate with a 10% deposit was 5.37%. That is up 0.19 points on three months earlier, when it was 5.18%, and up 0.79 points on a year earlier, when it was 4.58%.
Across the quoted fixed rates, none of the 9 were lower than a year before. Taken together, rates were higher than a year earlier.
Those figures come from before the latest decision. On 5 November 2026 the Bank of England raised Bank Rate from 3.75% to 4%. In the Bank's words: "Energy prices have stayed high and volatile due to conflict in the Middle East. Inflation is expected to reach about 5% by mid-2027."
How each rate has moved
The change in every quoted 2 and 5 year fixed rate, over twelve months and over three:
Source: Bank of England, quoted household interest rates (Bankstats G1.3), via HomePortfolio, read 12 November 2026.
Show the figures
| Mortgage | Rate now | 12 months before | Change | 3 months before | Change |
|---|---|---|---|---|---|
| 2 year fixed, 5% deposit | 5.7% | 5.03% | +0.67 pts | 5.54% | +0.16 pts |
| 2 year fixed, 10% deposit | 5.37% | 4.58% | +0.79 pts | 5.18% | +0.19 pts |
| 2 year fixed, 25% deposit | 5.13% | 4.19% | +0.94 pts | 4.8% | +0.33 pts |
| 2 year fixed, 40% deposit | 5.01% | 4.03% | +0.98 pts | 4.59% | +0.42 pts |
| 5 year fixed, 5% deposit | 5.54% | 4.9% | +0.64 pts | 5.31% | +0.23 pts |
| 5 year fixed, 10% deposit | 5.17% | 4.51% | +0.66 pts | 4.93% | +0.24 pts |
| 5 year fixed, 25% deposit | 4.98% | 4.16% | +0.82 pts | 4.62% | +0.36 pts |
| 5 year fixed, 40% deposit | 4.84% | 4.07% | +0.77 pts | 4.52% | +0.32 pts |
A 5 year fix with a 10% deposit was quoted at 5.17%, up 0.66 points on a year before. With a 5% deposit the 2 year rate was 5.7%, up 0.67 points. The rates for small deposits often move further than the rest, because lenders charge more for the risk of lending more of the price.
Bank Rate and mortgage rates
Bank Rate is the rate the Bank of England pays on the money banks hold with it, and it is the starting point for what lenders charge. At the end of September 2026 it was 3.75%, against 4% a year before. Since 2016 it has been as high as 5.25%, in August 2023. It last moved in the monthly figures in December 2025, when it was cut from 4% to 3.75%.
Source: Bank of England, Bank Rate and quoted household interest rates (Bankstats), via HomePortfolio, read 12 November 2026.
Show the figures
| Month | Bank Rate | 2 year fixed, 25% deposit |
|---|---|---|
| January 2016 | 0.5% | 1.93% |
| April 2016 | 0.5% | 1.84% |
| July 2016 | 0.5% | 1.72% |
| October 2016 | 0.25% | 1.52% |
| January 2017 | 0.25% | 1.45% |
| April 2017 | 0.25% | 1.35% |
| July 2017 | 0.25% | 1.41% |
| October 2017 | 0.25% | 1.55% |
| January 2018 | 0.5% | 1.54% |
| April 2018 | 0.5% | 1.72% |
| July 2018 | 0.5% | 1.75% |
| October 2018 | 0.75% | 1.8% |
| January 2019 | 0.75% | 1.72% |
| April 2019 | 0.75% | 1.66% |
| July 2019 | 0.75% | 1.61% |
| October 2019 | 0.75% | 1.47% |
| January 2020 | 0.75% | 1.41% |
| April 2020 | 0.1% | 1.38% |
| July 2020 | 0.1% | 1.45% |
| October 2020 | 0.1% | 1.94% |
| January 2021 | 0.1% | 1.75% |
| April 2021 | 0.1% | 1.49% |
| July 2021 | 0.1% | 1.29% |
| October 2021 | 0.1% | 1.29% |
| January 2022 | 0.25% | 1.64% |
| April 2022 | 0.75% | 2.35% |
| July 2022 | 1.25% | 3.48% |
| October 2022 | 2.25% | 5.99% |
| January 2023 | 3.5% | 5.14% |
| April 2023 | 4.25% | 4.6% |
| July 2023 | 5% | 6.22% |
| October 2023 | 5.25% | 5.6% |
| January 2024 | 5.25% | 4.71% |
| April 2024 | 5.25% | 4.98% |
| July 2024 | 5.25% | 4.99% |
| October 2024 | 5% | 4.4% |
| January 2025 | 4.75% | 4.63% |
| April 2025 | 4.5% | 4.42% |
| July 2025 | 4.25% | 4.21% |
| October 2025 | 4% | 4.2% |
| January 2026 | 3.75% | 3.93% |
| April 2026 | 3.75% | 5.14% |
| July 2026 | 3.75% | 4.79% |
| November 2026 | 4% |
On 5 November 2026 Bank Rate was raised by 0.25 points to 4%: the first rise since August 2023. On the middle new build asking price with a 10% deposit, a rate 0.25 points higher costs about £56 more a month.
The Bank of England's Monetary Policy Committee meets eight times a year to set Bank Rate. A decision can fall between these monthly figures, so the Bank of England's Bank Rate page gives the rate in force today.
The two lines in the chart do not move in step. In September 2026 the quoted 2 year fixed rate with a 25% deposit sat 1.38 points above Bank Rate. A fixed rate is set for years, so lenders price it on what they expect Bank Rate to be over the whole fix, not just today. When markets expect cuts, fixed rates can fall before Bank Rate does; when they expect rises, the reverse.
Will mortgage rates go down?
No one knows, and forecasts are often wrong. What can be said is what decides it: the Monetary Policy Committee sets Bank Rate to bring inflation back to the government's 2% target, so news that inflation is falling tends to bring fixed rates down, and news that it is rising tends to push them up. Lenders also compete for business, which can move rates a little without any change in Bank Rate.
The next Bank Rate decision is due on 17 December 2026.
For a buyer, the rate that matters is the one on the day you apply. A mortgage offer usually holds its rate for around six months, and some lenders give longer on a new home that is not yet finished. That means you can secure a rate before you find a home, and apply again if rates fall before you complete.
People also ask
Will interest rates go down?
No one can say for certain. The Bank of England’s Monetary Policy Committee sets Bank Rate eight times a year to keep inflation at 2%. Bank Rate is 4% after its latest decision.
Is now a good time to get a mortgage?
That depends on your plans, not just on rates. What the figures show is that in September 2026 the quoted 2 year fixed rate with a 10% deposit was 5.37%, up 0.79 points on a year before; an offer usually holds its rate for around six months.
Should I fix for 5 years or 2?
It depends on how long you want a steady payment and how soon you may move or remortgage. In September 2026 the quoted rate with a 10% deposit was 5.37% for 2 years and 5.17% for 5; many fixes charge a fee to leave early.
Rates by deposit today
The rate you are offered depends more on your deposit, and so your loan to value, than on the month you apply. These are the quoted rates at each loan to value in September 2026:
Source: Bank of England, quoted household interest rates (Bankstats G1.3), via HomePortfolio, read 12 November 2026.
Show the figures
| Loan to value | Deposit | 2 year fixed | 5 year fixed |
|---|---|---|---|
| 95% | 5% | 5.7% | 5.54% |
| 90% | 10% | 5.37% | 5.17% |
| 85% | 15% | 5.26% | |
| 75% | 25% | 5.13% | 4.98% |
| 60% | 40% | 5.01% | 4.84% |
These are averages across lenders and come a month or more behind. The mortgage rates comparison shows each lender's own deals today, read from their published rates every night, and its mortgage rate news lists every cut and increase, lender by lender, with the day it was made: a change in Bank Rate shows there as soon as lenders reprice. Our article on mortgage rates in the UK charts every deposit size since 2016 and what each costs a month on a typical new build, and our article on the 5% deposit mortgage sets out what a 95% loan costs and reaches.
What it means for a new build buyer
A new home is often reserved months before it is finished, so the rate at reservation and the rate at completion can differ. Check how long your mortgage offer lasts against the builder's completion date: the completion planner shows when the offer runs out against the builder's window. Some builders pay part of your mortgage costs, or pay a lender to lower your rate for a time: the offer comparison tool shows what such an offer is worth against money off the price, and the mortgage affordability calculator works out the payment on a real home at today's rates.
Find the new homes your budget reaches
Type your income and deposit: the calculator works out what you could borrow and shows the new homes it reaches, with the cash you need on the day.
Check what you can affordHow we worked it out
The rates are the Bank of England's average quoted rates for new 2 and 5 year fixed-rate mortgages at each loan to value, month by month since January 2016, and Bank Rate at the end of each month, from the Bank's statistical database (Bankstats tables G1.3 and Bank Rate), read through HomePortfolio and refreshed when the Bank publishes each month. A change is the difference between the latest month and the month three or twelve months before, in percentage points, shown only where the Bank quotes both months. The Bank publishes no 5 year rate at 85% loan to value. Every figure is worked out again each time the page is opened. It is information, not advice: NewHomeSearch does not arrange mortgages or recommend lenders.
Frequently asked questions
Are mortgage rates lower than a year ago?
Of the quoted fixed rates in September 2026, none of the 9 were lower than a year before. The 2 year fixed rate with a 10% deposit was 5.37%, against 4.58% a year earlier.
What is Bank Rate now?
4%, as the Bank of England’s latest decision set it. Its Bank Rate page gives the rate in force on any day, and the date of the next decision.
Do fixed mortgage rates follow Bank Rate?
Not exactly. A fixed rate is priced on what lenders expect Bank Rate to be over the fix, so it can move before Bank Rate does. In September 2026 the quoted 2 year fix with a 25% deposit sat 1.38 points above Bank Rate.
How often does the Bank of England change interest rates?
Its Monetary Policy Committee meets eight times a year to decide Bank Rate, and can leave it unchanged. On 5 November 2026 it raised Bank Rate from 3.75% to 4%.
Does a rate cut lower my mortgage payment?
Only if your rate tracks Bank Rate or is a lender’s variable rate. A fixed rate stays the same until the fix ends; the rate you move to then depends on the rates on offer at that time.
Sources
- NewHomeSearch: the new homes for sale in Englandbuilders' websites and listings portals, via HomePortfolio
- Bank of England: Database, quoted household interest rates and Bank Ratebankofengland.co.uk
- Bank of England: Interest rates and Bank Ratebankofengland.co.uk
Information only, not financial advice. NewHomeSearch is independent: it does not sell homes, arrange mortgages or take payment from builders. Read how we work out every figure.
From the guides:Types of mortgage: fixed, tracker, variable and offsetRemortgaging explained: how it works, when and the costsNew build mortgages: what is different and what to check