Anyone coming off a fixed-rate mortgage deal in the next twelve months is likely to be moving onto a different rate environment than the one they locked into two or five years ago. With the Bank of England base rate at 3.75% and inflation at 2.6% as of August 2026, rates have settled well below their 2023 peaks but remain higher than the sub-2% deals many borrowers fixed into before 2022. Understanding where rates actually stand, and when to act, is the difference between a smooth remortgage and an expensive drift onto your lender's standard variable rate.
As of early-to-mid August 2026, average two-year fixed mortgage rates are sitting broadly in the 5.1–5.6% range and average five-year fixes in the 5.1–5.7% range, depending on the data provider — Moneyfacts and Rightmove's tracker show slightly different averages, which is normal given they weight different lender panels. What matters more than the average is what you're currently paying: if your existing deal was fixed before rates rose, your new rate will almost certainly be higher, even if it feels competitive against today's market. If you're already on your lender's standard variable rate, the gap is more pronounced — SVRs are currently averaging around 7.13%, well above any competitively priced fixed deal.
Most lenders allow you to secure a new rate three to six months before your current deal ends, and many mortgage offers remain valid for that same window, which means there's rarely a good reason to wait until the last minute. Starting early gives you the option to lock in a rate and then switch to something better if the market moves in your favour before completion, without the pressure of a looming SVR switchover. If you're unsure exactly when your current deal ends, check your original mortgage offer or annual statement — missing the window by even a few weeks can mean a costly stint on your lender's SVR while a new deal is arranged.
With base rate having fallen from its recent peak and holding at 3.75%, some borrowers are weighing tracker or variable deals against a fix, betting that rates continue to ease over the next year or two. That's a reasonable position to consider, but it comes with genuine uncertainty — rate forecasts have moved more than expected over the past few years, and a tracker offers no protection if that trend reverses. For most residential borrowers prioritising certainty over their monthly outgoings, a fixed rate — two, three or five years, depending on your plans — remains the more predictable choice; it's worth discussing your specific circumstances, including how likely you are to move or overpay during the term, with a qualified adviser before deciding.
A remortgage isn't free, even when it saves you money overall. Expect to budget for a valuation fee (sometimes waived by the lender), legal or conveyancing fees for the switch, and potentially an early repayment charge if you're leaving your current deal before its fixed term ends — this last one can be substantial, so it's worth checking your existing mortgage offer before committing to a new rate elsewhere. Some deals also carry a product or arrangement fee, which can sometimes be added to the loan rather than paid upfront, though doing so means paying interest on it over the life of the mortgage. A whole-of-market comparison should weigh the headline rate against these costs together, not the rate in isolation.
Because product fees, rate type, loan-to-value and your own plans for the property all interact, the cheapest-looking headline rate isn't always the best overall deal once fees and flexibility are factored in. An adviser working across the whole market can compare products your own bank won't necessarily show you, and can flag whether porting your existing deal, taking a further advance, or switching lenders entirely makes most sense for your situation. If your fixed rate is ending within the next six months, it's worth getting that conversation started now rather than waiting for your lender's reminder letter — get in touch with our team for mortgage guidance tailored to your circumstances.