Mortgage & Remortgage Rates Update — August 2026

Where rates stand right now

As of late August 2026, the Bank of England base rate is 3.75%, held at the Monetary Policy Committee's meeting on 30 July 2026. That's down from the 4.50% seen earlier in the cycle and well below the 5.25% peak of 2023 — a meaningfully lower backdrop for anyone remortgaging this year.

Indicative best-buy remortgage rates at 75% loan-to-value (good credit, plenty of equity) currently look roughly like this:

• 2-year fixed: around 3.9%–5.2% depending on your LTV and profile
• 5-year fixed: around 3.8%–5.0% — often the sharpest headline rates
• Tracker (base rate + margin): around 4.0%–5.2%
• Standard variable rate (SVR): around 6.0%–7.7% — the rate you roll onto if you do nothing

These are indicative market ranges, not personalised quotes — the rate you're actually offered depends on your loan-to-value, credit profile, income and the lender. See current remortgage rates or check your options in 30 seconds.

What the 30 July hold actually means

Holding — rather than cutting — signals the MPC still isn't fully comfortable on inflation. CPI was 2.6% in the year to June 2026, above the 2% target, and the Bank's own projection shows it peaking near 3.2% in the final quarter of 2026 before easing back. Services inflation and pay growth remain the sticking points.

For remortgaging households, the practical takeaway is simple: don't wait for dramatic further cuts before acting. The market isn't pricing much more movement in the near term, and the next decision (17 September 2026) may well be another hold. If your deal is ending, the cost of sitting on an SVR while you wait almost always dwarfs any rate you'd save by holding out for a possible small cut.

The SVR trap — still the biggest saving on the table

The single most expensive mistake in a falling-rate environment is doing nothing and rolling onto your lender's standard variable rate. SVRs are currently sitting around 6–7.7% — roughly double the best fixed deals.

On a £200,000 balance, the gap between an SVR of around 7% and a 5-year fix near 3.8% is in the region of £6,000+ a year in interest. Even after any product and legal fees, switching is overwhelmingly worthwhile for most people on an SVR — which is exactly why it pays to line up your new deal before your current one ends.

You can usually lock a new rate 3–6 months ahead of your deal expiring, so it completes the day your current deal ends and you never touch the SVR. Check what you could save →

Fix for 2 or 5 years?

With 5-year fixes currently priced around or below 2-year fixes, the "certainty premium" for locking in longer is small right now. The trade-off:

• 2-year fix keeps your options open — sensible if you expect rates to keep drifting down and want to re-shop sooner, or if your circumstances might change.
• 5-year fix buys five years of budget certainty at a competitive rate — sensible if you value knowing your payment and don't expect to move.

There's no universally "right" answer — it depends on your plans and how you feel about payment certainty. A whole-of-market broker can model the true cost of each for your balance. If you'd prefer flexibility to overpay or leave penalty-free, a tracker or no-ERC deal is worth comparing too.

What to do before the 17 September decision

The next base-rate decision lands on 17 September 2026. You don't need to time it — but a few sensible steps put you in the best position whatever the MPC does:

• Check when your current deal ends. If it's within the next six months, start now — you can secure a rate early.
• Check your loan-to-value. If your home has risen in value or you've paid down the balance, you may have dropped an LTV band and qualify for a cheaper rate.
• Don't drift onto the SVR. It's almost always the most expensive place to be.
• Compare the whole market. The best deal for your profile varies by lender — comparing (or using a broker) is the surest way to find it.

See how much you could save with a free, no-obligation check that won't affect your credit score. Start your 30-second assessment →