What is the average fixed mortgage rate in the UK?

You’ve more than likely come across fixed mortgage rates, if you’re thinking of buying a home in the UK or remortgaging. These rates remain the same for a set period of time, usually two, five and sometimes ten years. The question is, what is the average fixed mortgage rate in the UK, and why is it so important?

Here, we’ll break down what a fixed mortgage rate is, how they’re set, and the current average rate. We’ll discuss how this rate affects your monthly payments and what steps you can take to get the best deal.

What is a fixed mortgage rate?

A fixed mortgage rate ensures your interest rate remains the same over a set time. This differs from a variable rate, which goes up or down. Fixed rates bring peace of mind, as your monthly payment remains the same. This allows for easier budgeting.

The majority of fixed rate deals will last for two or five years. Some will go as long as ten years, although they are less common. Once the fixed rate period ends, your mortgage will move to your lender’s standard variable rate (SVR), this is often higher.

Why do rates change?

A few factors influence mortgage rates. The key one being the Bank of England base rate. If the base rate rises, mortgage rates rise too. Lenders will often look at inflation, the economy, as well as how much they need to borrow from other banks.

Other factors such as your credit score, the deposit you have, and the loan-to-value (LTV) ratio will also play a part. The lower your LTV, the better the rate available to you.

What is the average fixed mortgage rate now?

As of June 2025, the average fixed mortgage rate in the UK sits around 4.9% for a five year deal, and 5.2% for a two year fix. Figures can change weekly, it’s crucial to check with lenders or mortgage brokers for the most up-to-date rates.

Keeping track of the average fixed mortgage rate is essential if you want to time your application right.

Just a few years ago, fixed rates were significantly lower, with some rates just below 2%. However, sharp rises in inflation, coupled with increases to the Bank of England base rate, saw mortgage rates climb. This has led to an increase in monthly repayments for many homeowners.

What affect does this have on my monthly payment?

The interest rate you receive, especially if it’s higher than the average fixed mortgage rate, has a big impact on the amount you pay each month. Here’s a quick breakdown. If you borrow £200,000 over 25 years, at 2% your monthly payment would be £848, at 5% this figure jumps to £1,170. That’s over £300 more each month. This demonstrates how even a small change in the rate can make a huge difference over time.

Can I still get a good deal?

Yes, but it will take some shopping around. Mortgage lenders will offer varying rates, depending on how much deposit you have and your credit history. For example, a 65% LTV mortgage (borrowing 65% of the property’s value) will typically have lower rates than a 90% LTV one.

Using mortgage brokers can help you find deals you may not otherwise see on comparison websites. They will also help you understand the full cost of the mortgage (fees, charges, etc.)

Should I fix now or wait?

This is always a tricky question. If rates are high, many will say wait and see if they fall. You could end up waiting too long and miss a good deal, rates could also rise again.

By fixing now, you know what you’ll pay for the next few years. For many people, that stability is worth it, even if rates do fall in the short term. For most, it’s about the peace of mind that comes with fixed payments.

I’m coming to the end of my fixed term, what should I do?

If your fixed rate is ending soon, it’s a great idea to begin looking for new deals. You can sometimes lock in a new rate up to six months before your current deal ends.

Avoid waiting until you’re switched to your lender’s SVR, it will likely be much higher. Planning ahead will likely save you hundreds, potentially thousands, over the years.

Get expert advice

The average fixed mortgage rate in the UK has gone up in recent years. This has led to an increase in the cost of borrowing, there are however still deals out there.

The most important thing is finding the right balance for you. Take the time to compare options, and speak to a mortgage advisor or broker if you’re not sure.

Let Regulated Advice match you with a mortgage advisor for expert advice.