If you have been keeping half an eye on the news, you will have seen plenty of talk about mortgage rates softening this spring. After a difficult couple of years for borrowers, the headlines feel more hopeful. But “rates are coming down” is a blunt phrase, and the real picture is more nuanced.
Some lenders have trimmed selected fixed-rate deals in May 2026, but rates are still far above the ultra-low levels many borrowers became used to before 2022. If you are buying your first home, moving house or coming to the end of a fixed deal, the key is not trying to guess the perfect moment. It is understanding what the market is doing, what you can afford, and when it makes sense to lock in a rate.
Where mortgage rates stand right now
The Bank of England held its base rate at 3.75% at its April 2026 meeting. That followed another hold in March, so the rate-cutting cycle has paused for now rather than moved steadily lower every month. The next Bank of England decision is due in June 2026.
Inflation has also moved in the right direction. CPI inflation fell to 2.8% in April 2026, down from 3.3% in March. That matters because inflation is one of the major factors the Bank looks at when deciding whether interest rates can come down further.
On the mortgage market itself, there has been genuine movement. Several lenders have reduced selected fixed rates during May, including cuts aimed at first-time buyers, home movers and people remortgaging. Nationwide, for example, reduced some fixed rates by up to 0.36 percentage points, with its lowest rate moving to 4.35% on selected products. Santander, TSB and others also adjusted parts of their ranges.
That is positive, but it does not mean every borrower will suddenly see a much cheaper deal. The best rates are usually reserved for people with large deposits or lots of equity, often at lower loan-to-value levels such as 60%. If you need to borrow 90% or 95% of the property value, the rate you are offered will usually be higher.
Why fixed rates do not simply follow the base rate
It is easy to assume that when the Bank of England holds or cuts the base rate, mortgage rates immediately follow. Variable and tracker mortgages are more directly affected by the base rate, but fixed-rate mortgages work differently.
Fixed mortgage rates are heavily influenced by swap rates. These reflect what financial markets expect interest rates to do over the next 2, 3 or 5 years. If markets think rates will fall, fixed mortgage pricing can improve. If markets become nervous about inflation, government borrowing, global events or future Bank of England decisions, swap rates can move up and lenders may reprice.
That is why the market can feel inconsistent. One lender may cut rates while another holds steady. A product can look competitive one week and be withdrawn or repriced the next. Even in a softer market, fixed rates do not usually fall in a smooth straight line.
This is where a good mortgage broker can help. Instead of you trying to track every lender’s pricing change, a broker can compare the market, check your eligibility and keep an eye on whether a better deal becomes available before your mortgage completes.
What it means if you are a first-time buyer
For first-time buyers, the recent lender cuts are encouraging, but affordability is still the biggest hurdle. House prices, deposit requirements, living costs and lender affordability tests all matter just as much as the headline rate.
One notable development in May 2026 was Lloyds Banking Group launching a £5,000 deposit mortgage through Lloyds, Halifax and Bank of Scotland. The product is aimed at first-time buyers purchasing homes up to £300,000, with a 5-year fixed rate, no product fee and a minimum £5,000 deposit. It may help some renters who can afford monthly repayments but have struggled to save a larger deposit.
However, low-deposit mortgages do not suit everyone. A higher loan-to-value usually means a higher interest rate, and your monthly repayments may be more sensitive to future rate changes when your deal ends. You also have less equity as a buffer if property values fall.
If you are buying for the first time, start by working out what you can afford comfortably, not just what a lender may offer. Look at your deposit, income, credit file, monthly spending and likely moving costs. Our guide for first-time buyers explains what to expect, while our buyers advice section walks through the wider process from offer to completion.
A few practical steps can make a real difference before you apply. Build the biggest deposit you realistically can, as a lower loan-to-value can unlock better rates. Check your credit file early and correct any errors. Keep non-essential spending sensible in the months before applying, because lenders will review your affordability closely.
If the terminology feels overwhelming, our jargon buster can help you decode the phrases you will keep seeing.
What it means if you are remortgaging
If your current mortgage deal ends in 2026, timing matters. Around 1.8 million fixed-rate mortgages are due to end this year, which means a large number of borrowers will be looking for new deals at the same time.
Many people coming off older deals will still face payment shock, even if rates have softened slightly. If you fixed several years ago at a much lower rate, your next deal may still be more expensive than the one you are leaving. The important thing is to avoid drifting onto your lender’s standard variable rate without checking your options.
Average standard variable rates remain much higher than many fixed-rate deals. Moving onto an SVR, even for a few months, can cost more than you expect. For some households, the difference can be hundreds of pounds a month.
The sensible move is to start your remortgages conversation early. Many lenders allow you to secure a new deal several months before your current rate ends. If a better option becomes available before completion, your broker can review whether switching makes sense.
Do not wait until the final few weeks. Leaving it late reduces your options and can create unnecessary stress, especially if your income, credit profile or property value needs extra review.
Should you wait or lock in now?
This is the question many borrowers are asking. The honest answer is that nobody can promise what mortgage rates will do next.
Rates could fall further if inflation continues to ease and markets become more confident about future Bank of England cuts. They could also stall or rise again if inflation proves sticky, swap rates increase or lenders become more cautious.
If your deal ends within the next 4 to 6 months, it is usually sensible to start looking now. Securing a rate does not always mean you are stuck with it immediately, and having an option in place can protect you from being forced onto a more expensive deal later.
If you are moving home, the same principle applies. Whether you need a home mover mortgage or are reviewing a buy to let property, early advice helps you understand borrowing limits, likely monthly costs and whether the numbers still work.
Waiting can pay off in some cases, but it is a gamble. The better approach is to secure something sensible, then keep the market under review before completion.
Do not forget the costs around the mortgage
A mortgage is only one part of the home-buying or remortgaging picture. Make sure the rest of your finances can cope if life changes.
That may include life insurance so your family could keep the home if the worst happened, critical illness cover if you were diagnosed with a serious condition, or income protection if you could not work for a period.
You will also need to think about home insurance, legal costs and conveyancing. If you are buying, these costs need to be included in your budget from the start, not treated as an afterthought.
You can also browse the full range of mortgages to see which type of product may fit your circumstances.
Frequently asked questions
Are mortgage rates definitely going to fall further in 2026?
No one can say for certain. Some fixed rates came down in May 2026, but mortgage pricing can change quickly. Inflation, swap rates, lender competition and Bank of England expectations all affect the market.
What is the Bank of England base rate right now?
As of late May 2026, the Bank of England base rate is 3.75%. It was held at the April meeting, with the next decision due in June 2026.
Can I still get a mortgage with a small deposit?
Possibly. Some lenders offer low-deposit products, including options for first-time buyers. However, the rate may be higher than lower loan-to-value deals, and you still need to pass affordability and credit checks.
My fixed deal ends soon. What should I do?
Start reviewing your options now. You may be able to secure a new rate before your current deal ends and avoid moving onto a more expensive standard variable rate.
Why has my mortgage rate not dropped if the base rate is lower than before?
Fixed mortgage rates are priced mainly around swap rates and future interest rate expectations, not just today’s base rate. That is why your available fixed rate can move differently from the Bank of England base rate.
Ready to make sense of it all?
Mortgage rates, lender criteria and product changes can feel like a full-time job to follow. You do not need to work it all out alone.
Call our team on 020 7183 0212 or send a quick mortgage enquiry, and we will help you find a deal that fits your situation with honest, straightforward advice and no obligation.
