Last updated: September 11, 2026
Average two-year fixed mortgage rates have jumped to about 5.67% on 10 September 2026, up from 5.59% on 1 September, as lenders reprice against rising swap rates. The Bank of England Bank Rate remains at 3.75%, with the next Monetary Policy Committee decision due at 12:00 on 17 September 2026. Most analysts expect a hold, meaning existing fixed-rate mortgage costs will not fall in the immediate term, while house prices continue to soften, down 0.4% year-on-year according to the Lloyds House Price Index.
The Bank of England Bank Rate stands at 3.75% in September 2026, unchanged since the MPC voted to hold at its 18 June 2026 meeting. The next scheduled decision, along with the Monetary Policy Summary and minutes, is due for publication at 12:00 on 17 September 2026.
This is the rate the Bank charges commercial banks for overnight borrowing, and it underpins pricing across savings, mortgages and business lending. A hold at 3.75% would mark the fourth consecutive unchanged decision this year, reflecting a Committee still wary of inflation but reluctant to tighten further given a cooling housing market.
Decision rule: if you're watching for signals ahead of 17 September, focus on swap rate movements rather than the base rate itself. Swaps, not Bank Rate, are what actually move fixed mortgage pricing week to week.
Bank of England rate changes affect mortgage rates in two very different ways depending on the type of mortgage. Tracker and standard variable rate (SVR) mortgages move almost immediately with the base rate, while fixed-rate mortgages are priced off swap rates, which reflect where financial markets expect interest rates to sit over the next two to five years.
Common mistake: assuming a Bank Rate hold means fixed mortgage rates will also stay flat. They can rise or fall independently of Bank Rate because swap markets price in expectations, not just the current rate.
Mortgage rates are more likely to drift sideways to slightly higher through September 2026 rather than fall sharply, based on current swap rate trends and the expected MPC hold. Moneyfacts data already shows average two-year fixed rates climbing from 5.59% to 5.67% in the first ten days of September alone.
Several housing-market outlooks suggest the MPC will hold Bank Rate at its September meeting, citing inflation that remains elevated even as it slowly moderates. One more optimistic forecast model suggests rates could ease into 2027, with average two-year fixed pricing potentially falling toward 4.48% and five-year fixed toward 4.28%, but this is a speculative projection, not a consensus view, and should be treated as an estimate rather than a certainty.
Current average rates sit meaningfully above the more optimistic forecasts circulating for later in 2026. As of 10 September 2026, Moneyfacts puts the average across all mortgage types at 5.62%, with two-year fixed averaging 5.67% and five-year fixed averaging 5.71%.
| Product type | Typical rate (September 2026) |
| Average 2-year fixed | 5.63% to 5.67% |
| Average 5-year fixed | 5.66% to 5.71% |
| 2-year fixed, 60% LTV | around 4.70% |
| 5-year fixed, 60% LTV | around 4.73% |
| 2-year fixed, 95% LTV | around 5.76% |
| Standard variable rate (SVR) | 7.13% to 7.3% |
| 2-year tracker | around 4.24% to 4.26% |
Different data providers report slightly different numbers depending on when their snapshot was taken and which lenders they include, so treat the ranges above as a guide rather than a single fixed figure.
A fixed-rate mortgage locks your rate for two, five or occasionally ten years, protecting you from further rate rises but also meaning you won't benefit if rates fall. A variable or tracker mortgage moves with the market, offering potential savings if rates drop but exposing you to higher payments if they rise.
With SVRs sitting near 7.1% to 7.3%, nearly double most fixed deals, sitting on a lender's default rate after a fixed term expires is rarely sensible for most borrowers.
Borrowers can lock in a mortgage rate now by securing a formal offer or rate reservation with a lender, which typically holds pricing for several weeks regardless of what happens on 17 September. Most lenders allow you to reserve a rate three to six months ahead of when you actually need the funds.
The best time to remortgage is typically three to six months before your current fixed deal expires, and with average rates already climbing in early September, acting sooner rather than later reduces the risk of paying more later.
Savers and cash-rich buyers benefit most directly from higher mortgage rates, since higher rates generally coincide with better savings account returns and give buyers with large deposits or cash offers more negotiating leverage in a softening market.
Higher borrowing costs are contributing to the wider price correction seen in the Lloyds House Price Index, which puts the average UK home at £298,468 in August 2026, down 0.4% year-on-year and 0.2% month-on-month. Rightmove data adds further detail: roughly a third of current listings have had asking prices reduced, by an average cut of about 7%.
What is the Bank of England base rate in September 2026? The Bank of England Bank Rate is 3.75%, held since the 18 June 2026 MPC meeting, with the next decision due 17 September 2026.
Will the Bank of England cut rates on 17 September 2026? Most current commentary points toward a hold at 3.75%, though some analyst forecasts suggest a possible cut could come as late as early 2027.
Why are mortgage rates rising if the base rate hasn't changed? Fixed mortgage rates are priced off swap rates, which have risen due to renewed geopolitical tension and shifting market expectations, independent of the Bank Rate holding steady.
Is now a good time to remortgage? If your current deal ends within six months, comparing rates now is generally sensible, since average two-year fixes have already risen from 5.59% to 5.67% in early September 2026.
The picture heading into the 17 September 2026 Bank of England decision is one of a stable base rate but rising fixed mortgage costs, driven by swap markets reacting to global uncertainty rather than domestic policy alone. Homeowners with fixes ending soon, landlords managing renewals, and buyers watching a softening price market all face the same practical choice: act on current information rather than waiting for a decision that may not move fixed pricing in the direction they hope.
Whether you're securing a new mortgage deal, buying in a market where a third of sellers have already cut their asking price, or reassessing a buy-to-let portfolio, the property itself deserves as much scrutiny as the interest rate attached to it. Before you commit to a purchase or remortgage in this shifting rate environment, book a RICS Level 2 HomeBuyer Report or a Level 3 Building Survey with Survey Merchant to uncover structural issues, damp, or costly defects that could affect your negotiating position or long-term costs.
Survey Merchant provides vetted RICS surveyors across 100+ UK locations at fixed fees:
→ Level 2 Home Survey (HomeBuyer Report)
→ Level 3 Building Survey (full structural survey)
→ RICS Red Book property valuations
→ Party wall surveyors — notices, awards & schedules of condition
→ Expert witness surveyors — CPR Part 35 reports for property disputes
