Is it a good idea to get a mortgage in 2026 in the UK?
For most buyers and remortgagers, 2026 presents a genuinely mixed picture: mortgage rates remain elevated compared to pre-2022 levels, but softening house prices and increased lender competition mean the decision depends heavily on your personal situation. There is no single right answer — but there is a right answer for you, and this guide breaks it down category by category.
Geopolitical turbulence, including escalating tensions in the Middle East following conflict involving Iran, renewed fears around so-called "Trumpflation" from US tariff policy, and volatile swap rates have all pushed lenders to price caution into their products. Yet falling property values in some regions and a government eager to support homeownership create genuine windows of opportunity. Let's look at the data.
What is happening to UK mortgage rates in 2026?
As of mid-2025 leading into 2026, the average two-year fixed mortgage rate sits around 4.8–5.2%, and five-year fixes are broadly in the 4.5–4.9% range, according to data from Moneyfacts. This is significantly above the sub-2% deals many borrowers enjoyed in 2020–2021, but meaningfully lower than the October 2022 peak of over 6.5% following the Liz Truss mini-budget.
The Bank of England base rate has been on a cautious downward path, but swap rate volatility — driven by global uncertainty — is preventing lenders from passing cuts through quickly. Swap rates, tracked via Bank of England gilt yield data, reflect what lenders pay to fund fixed-rate mortgages, and when they spike on geopolitical news, fixed rates follow within days.
How are geopolitical events affecting UK mortgage rates right now?
Global uncertainty is acting as an upward floor on UK mortgage rates, even as domestic inflation eases. Three forces are particularly relevant in 2026:
- Iran war uncertainty: Escalating conflict in the Middle East has pushed oil prices higher, feeding into UK inflation expectations and causing gilt yields to rise. Higher gilt yields directly lift the cost of funding for lenders.
- "Trumpflation" fears: US tariff policy under the Trump administration has reignited global inflation concerns. According to ONS inflation data, UK CPI remains above the Bank of England's 2% target, constraining how quickly the base rate can fall.
- Swap rate volatility: Five-year swap rates have oscillated between 3.8% and 4.6% in recent months, making it difficult for lenders to offer stable pricing. Some have repriced products twice in a single week.
Are UK house prices falling in 2026 — and does that change the calculation?
House price growth has slowed significantly, with some regions recording modest nominal falls. According to the ONS House Price Index, annual growth has moderated to low single digits nationally, with London and the South East showing the weakest performance. This matters because it affects your loan-to-value ratio, your equity position, and how much you pay in stamp duty land tax.
Softer prices mean first-time buyers may find entry-level properties more affordable than in 2021–2022, even if monthly repayments are higher due to rates. Use our LTV calculator to see how today's prices affect your deposit percentage and the rates available to you.
Is 2026 a good time to get a mortgage as a first-time buyer?
For first-time buyers, 2026 can be a viable year to purchase, particularly if you have a deposit of 10% or more and strong income stability. Waiting for rates to fall further carries its own risk — if prices recover and competition returns, you may pay more overall even on a lower rate.
Here is a real cost comparison to illustrate the trade-off:
| Scenario | Property value | Mortgage rate | Monthly repayment (25yr term, £200k loan) | Total cost over 5 years |
|---|---|---|---|---|
| Buy now (2026) | £250,000 | 4.9% (5yr fix) | ~£1,157 | ~£69,420 |
| Wait until 2027 | £265,000 (prices recover 6%) | 4.2% (optimistic) | ~£1,127 (on £212k loan) | ~£67,620 + extra stamp duty |
| Wait until 2027 | £265,000 (prices recover 6%) | 5.0% (rates stay elevated) | ~£1,244 (on £212k loan) | ~£74,640 + extra stamp duty |
The maths suggests that waiting only pays off if rates fall and prices do not recover. That is a double bet. Read our full first-time buyer guide for a step-by-step walkthrough of the process in the current market.
Use our affordability calculator to check what you could borrow based on your current income before making any decisions.
Is 2026 a good time to remortgage?
If your fixed rate is expiring in 2026, remortgaging is almost certainly better than reverting to your lender's standard variable rate (SVR). SVRs typically sit 2–3% above the best available fixed rates — meaning moving to an SVR could cost an extra £200–£400 per month on a typical mortgage.
The key decision for remortgagers is fixed versus tracker:
| Product type | Typical rate (2026) | Best for | Risk |
|---|---|---|---|
| 2-year fixed | 4.8–5.2% | Those expecting rates to fall by 2028 | Refix at unknown rate in 2 years |
| 5-year fixed | 4.5–4.9% | Stability seekers, budget planners | Miss out if rates drop sharply |
| Tracker (base rate + margin) | ~5.0–5.4% today, but moves | Those confident base rate will fall | Payments rise if base rate increases |
| SVR (do nothing) | 7.5–8.5% | Nobody — almost always the worst option | Very high monthly cost |
Our full remortgaging guide explains how to compare deals, avoid early repayment charges, and time your switch correctly. You can also use our mortgage calculator to model your new monthly payments across different rate scenarios.
Is 2026 a good time to move home and take out a new mortgage?
Home movers face the most complex decision. Selling in a softer market means potentially accepting less for your existing property, while buying in the same market means paying less for your next one. For upsizers, a falling market can actually be advantageous — the price gap between a smaller and larger property narrows.
Stamp duty is a significant cost to factor in. Use our stamp duty calculator to understand the full cost of your move before committing. If you already have equity in your home, our LTV calculator will show what rates you can access on your next purchase.
What about using equity instead of remortgaging — is a second charge mortgage worth considering?
For homeowners who locked into a low rate and do not want to lose it, a second charge mortgage can allow you to borrow additional funds without disturbing your first mortgage. This is increasingly relevant in 2026 for those facing home improvement costs or consolidating high-interest debt. Learn more in our second charge loans guide or use the second charge calculator to see what you could access.
What is the verdict — should you get a mortgage in 2026?
The honest answer is: yes, for most people, if the timing is right for your personal circumstances. Here is the summary by situation:
- First-time buyers with a 10%+ deposit and stable income: Do not wait indefinitely. The risk of prices recovering outweighs the potential gain from lower rates.
- Remortgagers coming off a fix: Act before your deal expires. Reverting to SVR is almost always the most expensive outcome.
- Home movers upsizing: A softening market narrows price gaps — this can be a good time to make the move if you can manage the monthly payments.
- Investors and buy-to-let landlords: The calculation is tighter. Read our buy-to-let mortgages guide for the specific affordability criteria and tax considerations that apply.
- Those with poor credit history: Higher base rates mean specialist lender premiums bite harder. Our bad credit mortgages guide explains your options.
The best mortgage decision is never purely about the rate — it is about your income stability, deposit size, timeline, and whether the repayments are genuinely sustainable. Speaking to a whole-of-market broker remains the most reliable way to find the right product for your specific situation in a volatile market.