The Bank of England raised its base rate from 3.75% to 4% on November 5, 2026, and borrowers on tracker mortgages will see their payments rise as a result. The move is the latest turn in a year of rate volatility driven in part by conflict in the Middle East pushing up costs for lenders, according to mortgage analysts at the HomeOwners Alliance.
The best fixed-rate deals have dipped slightly in recent days, but average two- and five-year fixed mortgage rates in the UK remain around 6%. The cheapest two-year fixed rate for buyers is currently from Halifax at 4.78%, with £1,099 in fees and a 60% loan-to-value limit, according to Mortgage Advice Bureau data updated November 11. The same lender offers a five-year fixed at 4.78% on the same terms.
Trackers undercut fixed deals
The lowest tracker mortgage is currently from Barclays at 4.24%, with £1,104 in fees, while Halifax offers a two-year tracker at 4.24% with £1,599 in fees. Money.co.uk, using broker partner Mojo, lists the lowest two-year fixed at 75% loan-to-value at 4.88%, against an average of 5.83%, and a two-year fixed at 90% loan-to-value at 5.18% against an average of 5.79%.
A transatlantic squeeze
British borrowers face the same squeeze as American ones: the US 30-year fixed mortgage sits at 7.12%, and the Federal Reserve is now certain to raise rates again in December. In both countries, the advice is the same — borrowers coming off a fixed deal should start shopping months early, compare the true cost including fees rather than the headline rate, and think twice before assuming rates will fall soon.
The best deals are not the average deals. Santander offers a ten-year fixed mortgage at 5.29%, according to the Mortgage Advice Bureau table, while the lowest two-year fixed for buyers is Halifax at 4.78% with £1,099 in fees, and the lowest tracker is Barclays at 4.24%. Money.co.uk puts the lowest two-year fixed at 75% loan-to-value at 4.88% against an average of 5.83%, and a buy-to-let two-year fixed at 3.60% against an average of 5.92%. The spread between the best and the average rate is worth hundreds of pounds a year on a typical loan, which is why brokers advise comparing the true cost, including fees, rather than the headline rate alone.
