UK Mortgage Rates Rise Twice Sept 2026 Lender Breakdown

At a glance

UK mortgage rates rose twice in September 2026: September 5 (Halifax, Santander) and September 23 (Barclays, HSBC, Nationwide).

Two-year fixes climbed 20 to 35 basis points; five-year fixes climbed 25 to 40 basis points.

Average two-year fix for a 60% LTV product: 4.45% in late August to 4.72% by September 30.

Average five-year fix for a 60% LTV product: 4.55% in late August to 4.83% by September 30.

Most lenders are signaling one more 15 to 25 basis point increase in October if swap rates stay elevated.

UK mortgage rates rose twice in September 2026, with major lenders repricing both two-year and five-year fixed-rate products on September 5 and again on September 23. The total move over the month was 20 to 40 basis points higher across the standard product range, depending on loan-to-value tier and product type. This is a lender-by-lender breakdown of what changed, why it changed, and what it means for borrowers making a remortgage decision in October.

Why rates rose twice in September

Two factors drove the September reprice cycle. First, swap rates — the wholesale funding cost lenders use to price fixed-rate mortgages — climbed sharply in early September after the August CPI print came in at 3.1%, above the Bank of England's 2% target. The 2-year swap rate moved from 4.20% in late August to 4.55% by September 4, a 35 basis point move in two weeks. That alone was enough to trigger the first round of lender reprices on September 5.

Second, the Monetary Policy Committee voted 6-3 to hold Bank Rate at 4.75% on September 18, but the minutes and the press conference signaled that the next move is more likely to be up than down. Markets responded by pushing the 2-year swap rate up another 15 basis points to 4.70% by September 22. That triggered the second round of reprices on September 23.

The combination of a hot CPI and a hawkish hold is what produced the back-to-back increases. A single hot print usually produces one round of reprices; the second round reflects the market pricing in a longer period of elevated rates.

Lender-by-lender breakdown

The table below summarizes the September reprice moves for the major high-street lenders. All changes are in basis points; the products compared are the 60% LTV two-year and five-year fixed products that most remortgage borrowers use.

Halifax and Santander were the most aggressive on the September 5 round; Nationwide and Lloyds caught up on the September 23 round. Yorkshire, Coventry, and Skipton building societies were the most measured, raising rates by 15 basis points in total across the month.

What the September reprice means for borrowers

If you are on a standard variable rate (SVR) — which most lenders charge around 7.50% to 8.25% in September 2026 — the reprice is a clear signal to fix. The cheapest two-year fix at 60% LTV moved from 4.30% to 4.65% in September, but even the most expensive two-year fix is still 3 percentage points below SVR. Fixing saves a typical £200K mortgage borrower about £500 per month compared to SVR.

If you are on an existing two-year fix that expires within the next 3 months, you are in the booking window. Most lenders will let you lock a product up to 6 months before completion. Locking in early secures the current rate, but be aware that some lenders charge a booking fee and that the rate is only guaranteed if you complete on the locked date. The booking fee is typically £0 to £250.

If you are on a five-year fix that expires within 3 months, the decision is more nuanced. The five-year fix is 10 to 15 basis points more expensive than the two-year fix in September 2026. If you expect Bank Rate to fall in 2027, the two-year fix lets you refinance at a lower rate in 2028. If you expect rates to stay higher for longer, the five-year fix locks the cost certainty.

First-time buyers versus remortgagers

First-time buyers saw the largest increases in September, with 90% and 95% LTV products rising 30 to 50 basis points. The average 90% LTV two-year fix moved from 5.10% in late August to 5.45% by September 30, and the 95% LTV two-year fix moved from 5.35% to 5.70%. These higher LTV products are funded by the government-backed mortgage guarantee scheme, which adds a small premium to the headline rate.

Remortgagers at 60% to 75% LTV saw smaller increases, typically 15 to 30 basis points. The lower LTV you have, the more lenders compete for your business — the spread between the cheapest and most expensive product at 60% LTV is typically 30 to 50 basis points, while at 90% LTV it widens to 60 to 90 basis points.

Tracker and discount mortgages

If you are on a tracker mortgage that follows Bank Rate, the September reprice does not directly affect you. Your rate moves with Bank Rate, which is unchanged. But tracker products typically have no early repayment charge, so you can switch to a fixed rate at any time. If the next Bank Rate move is up, your tracker will become more expensive immediately. If the next move is down, your tracker will become cheaper.

Discount mortgages (a discount off SVR for a fixed period) similarly do not change with the September reprice. But the underlying SVR is typically 7.50% to 8.25%, so a 2% discount mortgage charges 5.50% to 6.25%, which is more expensive than the cheapest fixed rate. Most borrowers on a discount mortgage will be better off switching to a fixed rate in October 2026.

Should I overpay the mortgage or fix?

If you have spare cash and your mortgage is on SVR or a discount, the choice between overpaying and fixing depends on the spread. With SVR at 7.50% and the best fix at 4.65%, the 285 basis point spread is large enough that fixing wins, even accounting for the lost flexibility of overpayments. If you are already on a 4.65% two-year fix, overpaying at 4.65% beats fixing at 5.00% (a hypothetical 35bp higher next year), so overpaying wins.

For most borrowers in September 2026, the best move is: fix now if you are on SVR or a deal expiring soon; hold the existing fix if you have 12+ months remaining; overpay the existing fix if you have spare cash and the rate is below 5.00%.

What to watch in October

Three things will determine whether rates rise again in October 2026:

1. The September CPI print, due mid-October. A print above 3.2% would likely trigger another round of reprices; a print below 2.8% would give the market cover to push back.
2. The Bank of England November meeting, with the next CPI print ahead of it. A 25bp hike would push two-year fixes through 5.00%; a hold would stabilize the market.
3. The Autumn Statement on November 26. The Chancellor could announce measures to support first-time buyers, including potential stamp duty reforms or a new mortgage guarantee scheme extension. Watch for fiscal policy that affects housing demand.

Source: Bank of England statistical release, September 2026; Moneyfacts mortgage rates comparison, September 30, 2026; lender product sheets from Halifax, Santander, Barclays, HSBC, Nationwide, NatWest, Lloyds, TSB, Virgin Money, Yorkshire Building Society, Coventry Building Society, Skipton Building Society, September 2026.

UK mortgage rates September 2026 buyer FAQ

What is the best two-year fixed mortgage in October 2026? The cheapest two-year fix at 60% LTV in late September 2026 was 4.65% (Barclays). At 75% LTV, the cheapest was 4.78% (Halifax). At 90% LTV, the cheapest was 5.25% (HSBC). Expect a small upward move in October.

What is the best five-year fixed mortgage in October 2026? The cheapest five-year fix at 60% LTV was 4.74% (Barclays). At 75% LTV, the cheapest was 4.88% (Halifax). The five-year fix is currently only 10 to 15 basis points more expensive than the two-year fix, which is unusually narrow.

Should I overpay my mortgage or fix in October 2026? If you are on SVR (typically 7.50% to 8.25%), fix now. The 285 basis point spread makes fixing a clear win. If you are already on a fix below 5.00%, overpaying at that rate beats fixing at a likely higher future rate.

Will UK mortgage rates rise again in October 2026? Most lenders are signaling one more 15 to 25 basis point increase in October if swap rates stay elevated. The market is pricing a 40% probability of a 25bp Bank Rate hike by year-end. Watch the September CPI print and the November MPC meeting.

Is now a good time to buy a house in 2026? Affordability is the tightest since 2008, but the worst of the rate cycle may be near. If you can afford the monthly payment at current rates, the trade-off between waiting for a rate cut and locking in today is roughly a wash. Most brokers recommend fixing for 2 years now and reassessing in 2028.

What is the average UK mortgage rate in September 2026? The average two-year fix for a 60% LTV product is 4.72%; the average five-year fix is 4.83%. These are up from 4.45% and 4.55% respectively at the end of August 2026.

Related guides

• UK online MBA finance 2026
• UK inflation 3.1 percent September 2026
• UK remortgage rates September 2026 two year fixes
• UK mortgage rates September 2026 two year fixes