UK Mortgage Rates: Where They Stand in September 2026
The Bank of England held its base rate steady in September, and that decision is directly shaping what UK buyers — including overseas investors financing a purchase — are paying right now.
This Banke update covers the current picture.
The Base Rate Decision
The Bank of England held its base rate at 3.75% on 17 September 2026, unchanged since May 2025. The vote wasn't unanimous — six Monetary Policy Committee members backed holding, while three voted for a rise to 4%, a signal that the committee still sees inflation risk on the table.
Fixed Mortgage Rates
Average two-year and five-year fixed rates are both running around 5.4–5.7% as of September 2026, depending on the exact data source and product mix — broadly similar pricing whether you fix for two years or five right now.
Variable Rate Borrowers Pay More
The average Standard Variable Rate sits at 7.13% — a significant gap above the fixed-rate options, and a reminder to check what rate you'd roll onto if a fixed deal expires without a new one lined up.
What's Expected Next
Most analysts expect rates to stay elevated through late 2026 — markets are pricing in a hold, or even a possible hike, at the Bank's next meeting in November, rather than the rate cut some borrowers had been hoping for.
Talk to Banke
Contact Banke to compare current mortgage options before locking in a rate.