Mortgage Market Finds Calm After the Storm: Where to Find the Best Rates in 2026

After a period of historic volatility, the UK mortgage market has entered a phase of relative stability in 2025, offering a welcome respite for borrowers. With the Bank of England implementing four base rate cuts last year and more anticipated in 2026, a new landscape is emerging for homebuyers and those looking to remortgage.

While the era of ultra-cheap money is firmly in the past, competitive rates are returning. Most major high-street lenders now offer products below 4%, though the average for popular two and five-year fixed deals remains just under 5%. This stability is crucial, as even a fractional percentage point difference can translate to tens of thousands of pounds over the lifetime of a loan.

To help navigate this environment, The Telegraph presents daily-updated ‘Best Buy’ tables, powered by verified live data from Koodoo (Mortgage Power Limited), an FCA-authorised source. These tables highlight the most competitive rates widely available for both residential purchases and remortgages, excluding niche products tied to specific brokers, local customers, or government schemes.

Analysis: The current calm follows a perfect storm of rapid base rate hikes designed to curb inflation. While lower rates are a relief, experts caution that the market has fundamentally reset. "Borrowers must understand that rates are now tiered," explains Chris Sykes, a mortgage consultant at Private Finance. "Your deposit size, employment status, and income structure directly impact the rate you're offered. A larger deposit remains the most effective lever for securing a better deal."

The core decision for many remains the choice between short-term flexibility and long-term security. A two-year fix offers a chance to remortgage sooner if rates fall further, while a five-year fix provides payment certainty. "It boils down to risk appetite," says Alex Ogario of Knight Frank. "Some prioritise stability to shield themselves from future volatility, while others want to keep their options open. There's no universal answer." Variable or tracker mortgages may appeal to those anticipating near-future base rate cuts or with uncertain plans.

For complex cases—such as the self-employed or those with irregular income—or simply to access exclusive deals, using a whole-of-market mortgage broker is increasingly recommended. "In this climate, due diligence is paramount," Ogario adds. "Don't start viewing properties without understanding your financial position."

Reader Reactions:

• Michael T., Financial Planner from Surrey: "This stabilisation is a positive signal for the housing market's health. First-time buyers, in particular, should use this period to build their deposit. Every extra 5% can unlock a significantly better rate tier."
• Sarah Chen, First-Time Buyer in Manchester: "Seeing rates below 4% gives me hope, but the advice on deposit size is sobering. It feels like the goalposts have moved permanently. We're saving harder than ever, but it's a longer climb now."
• David R. (posted online): "'Stability'? This is just the banks catching their breath before the next round of profiteering. The article glosses over how these 'competitive' rates are still double what they were three years ago. It's a disaster for ordinary people, not a trend to celebrate."
• Eleanor Shaw, Remortgaging in Leeds: "The detailed comparison between two and five-year fixes is exactly what I needed. The broker advice is key—ours found us a deal we'd never have seen online, saving us £120 a month."

Data Note: The 'Best Buy' rates are representative of a £150,000 loan on a £275,000 property over 25 years. Always seek independent advice. Your home may be repossessed if you do not keep up with mortgage repayments.