Global tensions also push pricing higher, with average two- and five-year fixed rates now above 5%
Sub-4% fixed-rate mortgages have all but disappeared from the market as lenders reprice in response to higher swap rates, price comparison website Moneyfactscompare.co.uk has revealed.
Since the start of March, major high street banks including Barclays, HSBC, Lloyds Bank, NatWest and Santander have raised mortgage rates. Moneyfacts said the number of providers able to offer fixes below 4% had fallen sharply.
Moneyfacts added that several lenders — including Barclays, HSBC, NatWest, Nationwide and Santander — no longer list sub-4% fixed-rate products, which were still available last week. It said this leaves borrowers facing the highest “best buy” pricing for two- and five-year fixes in more than a year, with the last instance of both lowest rates sitting above 4% recorded in February 2025, using first-of-month data.
While average mortgage rates across the two-, five- and 10-year fixed-rate segments are lower than a year ago, recent increases have pushed the average two- and five-year fixed rates back above 5%.
| Mortgage market analysis | ||||||
|---|---|---|---|---|---|---|
| Average mortgage rates | March 2021 | March 2024 | March 2025 | February 2026 | March 2026 | March 17, 2026 |
| Standard variable rate (SVR) | 4.41% | 8.18% | 7.68% | 7.15% | 7.13% | 7.13% |
| Two-year fixed mortgage | 2.57% | 5.76% | 5.39% | 4.85% | 4.84% | 5.28% |
| Five-year fixed mortgage | 2.75% | 5.34% | 5.22% | 4.94% | 4.96% | 5.32% |
| 10-year fixed mortgage | 2.38% | 5.56% | 5.61% | 5.60% | 5.61% | 5.76% |
| Source: Moneyfactscompare.co.uk. Average rates shown are as at the first available day of the month, unless stated otherwise. | ||||||
Moneyfacts noted that after the Bank of England base rate was reduced to 3.75% in December 2025, the average standard variable rate (SVR) has edged down by 0.14 percentage points, from 7.27% to 7.13%. Over the past year, the base rate has fallen by 0.75 percentage points, while the SVR has declined by 0.55 percentage points.
Moneyfacts also reported that its average mortgage rate has dropped over 12 months from 5.33% to 4.90% last month, but has recently moved back above 5%.
“Borrowers looking for the lowest fixed rates will be disappointed to see the demise of sub-4% mortgages, but they are not sustainable with swap rates increasing,” said Rachel Springall (pictured right), finance expert at Moneyfactscompare.co.uk.
“Lenders look at margins very carefully, so it would be unwise to price their deals too low, if the expectations are for interest rates to rise, even if over the short-term. The mortgage market needs stability, and really, borrowing costs are lower than in recent years, and we have had sub-4% deals on the shelves for over a year.
“While many of the biggest lenders no longer offer a sub-4% fixed deal, it is a cautious decision. Mortgage rates are rising due to global pressures, not UK fiscal policy, so while not ideal, rate increases are not mirroring the ‘mini-Budget’ fiasco in 2022.”
Springall explained that the unrest in the Middle East led to rising swap rates, which inflated mortgage rates and caused deals to be pulled from sale, some temporarily.
“These developments have scuppered expectations for the Monetary Policy Committee to vote for a cut to the Bank of England Base Rate, now much more likely for a hold this week,” she said.
“If such uncertainty is prolonged, and indeed if inflation spikes, we could even see an increase to BBR before the year is over. It really is too early to tell what might happen, but borrowers searching for a new deal should seek advice if they are concerned about rising costs. It is still important to secure a fixed deal compared to a high revert rate, as almost £300 could be saved each month in repayments, and existing borrowers could lock into a new deal six months in advance.”
Moneyfacts said the comparison on monthly costs was based on a £250,000 repayment mortgage over 25 years, using an SVR of 7.13%. On that basis, it put repayments at £1,787 a month on SVR versus £1,502 a month on a 5.28% two-year fixed rate.
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