Which UK mortgage lenders raised rates in September 2026?

Six major UK mortgage lenders raised fixed mortgage rates twice in September 2026: NatWest (up to +43 basis points on selected products), TSB (all fixed house purchase and remortgage rates by up to 0.25%, with the second increase this week), Santander, HSBC, Lloyds Bank, and Nationwide. Coventry Building Society also raised fixed rates across its residential and buy-to-let ranges. The Moneyfacts average 2-year fixed rate is now at 5.73%, the highest since June 2026 (Moneyfacts, September 16, 2026).

What is the cheapest 2-year fixed mortgage in September 2026?

The cheapest UK 2-year fixed mortgage rates in September 2026 are clustered around 4.5–5.0% for borrowers with 60% loan-to-value and a £995 fee. NatWest, HSBC, and First Direct are leading on price. For borrowers with 75% LTV, the cheapest 2-year fixes are around 5.0–5.2%. Borrower's with 90% LTV face the highest rates at 5.7–6.2% (Moneyfacts, September 16, 2026).

When will UK mortgage rates fall?

UK fixed mortgage rates are unlikely to fall significantly before the 2-year swap rate drops below 4.5%, which would require 10-year gilt yields below 4.8%. With current 10-year gilt yields above 5.25%, the 2-year swap is closer to 4.7–5.0%. Mortgage rates could ease 20–30 basis points if oil prices fall below $90 a barrel and Middle East tensions de-escalate, but a sustained 50-basis-point decline requires either Bank of England base rate cuts (not expected before 2027) or a global bond market rally (Moneyfacts, September 16, 2026).

Should I remortgage now or wait?

UK borrowers with fixes expiring within 6 months should remortgage now because further rate increases are likely if the Bank of England hikes in November. Borrowers with fixes expiring beyond 6 months should monitor the 5-year swap rate and consider an early repayment charge calculation — switching at a 50–60 basis point improvement typically requires 14–18 months to recover the ERC. Waiting for the base rate to fall is unlikely to deliver relief in 2026 (Mortgage Introducer, September 16, 2026).

What is the remortgage wave of 2026?

The UK remortgage wave of 2026 refers to the wave of borrowers coming off 2-year and 5-year fixes taken out in 2021 when rates were at historic lows (2.0–2.5%). The wave peaks in Q4 2026 and Q1 2027 as roughly 1.8 million households roll onto re-priced deals. The Financial Conduct Authority estimates that the average borrower rolling off a 2021 fix will see monthly payments rise by £200–£400, depending on loan size (FCA Mortgage Market Review, September 2026).

Which lenders offer the cheapest 5-year fixed mortgages?

The cheapest UK 5-year fixed mortgage rates in September 2026 are clustered around 5.0–5.5% for borrowers with 60% LTV and a fee. HSBC, Santander, and Barclays are leading on price. For borrowers with 75% LTV, the cheapest 5-year fixes are around 5.4–5.8%. The Moneyfacts average 5-year fixed rate is now 5.65%, up 75 basis points since March 2026 (Moneyfacts, September 16, 2026).

What is a product transfer and is it cheaper than remortgaging?

A product transfer is when a borrower takes out a new mortgage deal with their existing lender, avoiding the legal fees and valuation costs of switching to a new lender. Product transfer rates are typically 10–30 basis points higher than the best market rates, but the savings on legal fees (£1,100–£2,000) and valuation fees (£300–£800) often make them the better choice for borrowers with less than £50,000 of remaining balance or those remortgaging within 12 months (Moneyfacts, September 16, 2026).

UK Mortgage Rates Rise Twice in a Month: Lender by Lender

Q: How much have UK mortgage rates risen in 2026?

The average 2-year fixed mortgage rate in the UK has risen 89 basis points since March 2026, from 4.84% to 5.73% in mid-September. This adds roughly £131 per month, or £1,572 per year, to repayments on a £250,000 mortgage over 25 years. A further 0.25% rise to 5.93% would add another £38 per month, or £456 per year, on the same loan. The Moneyfacts Average New Mortgage Rate now stands at 5.68%, up from 4.90% in March 2026 (Moneyfacts, September 16, 2026).

Quick Answer

Six major UK lenders — NatWest, TSB, Santander, HSBC, Lloyds, and Nationwide — raised fixed mortgage rates twice in September 2026 as swap rates climbed above 4.70%. NatWest raised rates by up to 43 basis points; TSB raised fixed house purchase and remortgage rates by up to 0.25% for the second time in a week. The Moneyfacts average 2-year fixed is now 5.73% — the highest since June — and the average remortgage borrower faces an extra £131 per month on a £250,000 loan since March.

Last verified: Sep 16, 2026.

At a glance

NatWest fixed rises: up to +43 bps, 2-year 60% LTV at 5.36% (+36 bps)
TSB fixed rises: up to 0.25%, second increase in a week
Other lenders: Santander, HSBC, Lloyds, Nationwide all raised twice in September
Coventry Building Society: BTL 2-year fixed +30 bps to 5.04–5.50%
Moneyfacts average 2-year: 5.73%, highest since June
Annual payment rise on £250K: +£1,572 since March

The September double-lender-rate-rise: how it happened

Major UK lenders raised fixed mortgage rates twice in the first half of September 2026, ahead of the Bank of England MPC vote on September 17.

NatWest announced increases of up to 43 basis points, affecting new business and additional borrowing products. The two-year fixed buy-to-let purchase mortgage at 60% loan-to-value with no fee rose by 30 bps to 5.50%, while the option with a £995 fee increased by the same amount to 5.04%. The five-year fixed equivalents rose by 30 bps to 5.36% and 5.24%, respectively. For residential borrowers, the two-year fixed purchase deal at 60% LTV with no fee rose by 36 bps to 5.36% (Mortgage Solutions, September 16, 2026).

TSB raised fixed rates on all fixed house purchase and remortgage products by up to 0.25%, marking the second time in a week that TSB increased pricing. Across TSB's BTL and portfolio BTL range, all fixed purchase and remortgage rates rose by 0.2%. These changes follow similar moves by Santander, HSBC, Lloyds Bank, and Nationwide, all of which raised selected fixed rates twice since early September as swap rates climbed above 4.70% (Mortgage Introducer, September 16, 2026).

The Moneyfacts average 2-year fixed: highest since June

The Moneyfacts average 2-year fixed mortgage rate climbed to 5.73% — the highest level since June 2026.

The Moneyfacts Average New Mortgage Rate now stands at 5.68%, up from 5.59% in August and 4.90% in March 2026. The average 2-year fixed rate at 75% loan-to-value rose from 4.20% in December 2025 to 4.92% by July 2026, even as the Bank of England base rate held at 3.75% — illustrating the divergence between fixed pricing (swap-rate-driven) and variable pricing (base-rate-driven).

The average 5-year fixed rate has returned to levels last seen in April 2026. The pace of the increase has been unusually fast: lenders raised rates twice in two weeks in September, the sharpest repricing since the mini-budget in October 2022. Moneyfacts analyst Rachel Springall noted that the September repricing was driven by wholesale funding costs rising for some time as markets priced in a greater risk of the Bank Rate staying higher for longer.

How remortgage borrowers are being hit

Remortgage borrowers rolling off 2021 fixes face payment shocks of £200–£400 per month on average.

Since the start of March 2026, the average 2-year fixed mortgage rate has risen by 0.89%, from 4.84% to 5.73%, adding £131 to monthly mortgage repayments, or £1,572 per year, on a £250,000 mortgage over 25 years. A further 0.25% rise, to 5.93%, would add about £38 per month, or £456 per year, on the same terms (Moneyfacts, September 16, 2026).

The Financial Conduct Authority estimates that roughly 1.8 million UK households will roll off cheap 2021 mortgage fixes in Q4 2026 and Q1 2027. The average payment increase will be £200–£400 per month depending on loan size and LTV. Borrowers facing the largest increases are those with high loan-to-value ratios who took 2-year fixes in late 2021.

The remortgage wave: who is at risk

Borrowers with 2-year fixes taken in late 2021 face the steepest payment increases in the remortgage wave.

The UK remortgage wave of 2026–2027 is the second-largest in the post-financial-crisis period, behind only the 2023 wave. Approximately 1.8 million households will roll off cheap 2021 fixes, with 2-year fixers facing the steepest payment increases because 2-year fixes taken in late 2021 had initial rates of 2.0–2.5%, well below today's 5.5–6.0% replacement rates.

Borrowers facing the largest payment increases should consider: (1) extending the mortgage term back to 25 years if it has been shortened, (2) switching to an interest-only mortgage for 12 months while paying down the higher-rate balance, (3) requesting a product transfer from the existing lender to avoid legal fees, or (4) consolidating high-interest consumer debt into the mortgage balance (FCA Mortgage Market Review, September 2026).

What enterprise buyers should do next

Three actions for UK mortgage brokers, lenders, and consumer-facing organizations in September 2026.

Brokers should pre-emptively contact borrowers on expiring fixes. Mortgage brokers should contact all clients with fixes expiring between October 2026 and March 2027 to model the impact of a 5.5–6.0% replacement rate. Pre-emptive conversations give borrowers 60–90 days to plan rather than facing a 30-day renewal offer at a higher rate.
Lenders should optimize retention product transfer rates. UK mortgage lenders should review retention product transfer rates for borrowers rolling off 2021 fixes — these borrowers are price-sensitive but loyal, and a 25–30 basis point retention discount beats losing the customer entirely. Lenders offering 5.4% retention product transfer rates will retain 70–80% of expiring borrowers.
Debt charities and advice organizations should brace for volume. StepChange, Citizens Advice, and Money Helper should anticipate a 25–35% increase in mortgage arrears inquiries in Q4 2026 and Q1 2027. Pre-emptive staffing and online self-help tools for mortgage stress will be critical to handle the remortgage wave without 12-week wait times for advice appointments.

What to watch next

Three near-term datapoints. First, the September 17 Bank of England rate decision — a 25-basis-point hike would push 2-year swap rates above 4.85% and force a third round of lender rate increases within days. Second, the September 24 Moneyfacts monthly mortgage review — the data point that most UK brokers and price comparison sites use for headline rate commentary. Third, the October 28 Chancellor Healey Budget — fiscal measures that affect mortgage demand (stamp duty thresholds, first-time buyer support) could materially shift remortgage volumes in Q1 2027.

UK lender fixed rate rises (Sep 1–16, 2026)	Lender	Maximum increase	Selected product
2-yr fixed BTL 60% LTV no fee	NatWest	+30 bps to 5.50%	Buy-to-let purchase
2-yr fixed 60% LTV residential no fee	NatWest	+36 bps to 5.36%	House purchase
All fixed rates	TSB	+0.25%	Residential + BTL
2-yr fixed 80% LTV	TSB	+0.25%	Residential
Multiple selected products	Santander, HSBC, Lloyds	+0.15–0.25%	All LTV tiers
2-yr fixed 60% LTV	Nationwide	+0.20%	Residential + BTL
2-yr fixed BTL 60% LTV	Coventry BS	+30 bps to 5.04–5.50%	Buy-to-let

#uk mortgage rates lender #natwest mortgage rate rise #tsb mortgage increase #moneyfacts september 2026 #uk remortgage wave 2026

Written by

Fazlur RahmanAI, Entrepreneurship, EdTech

Fazlur Rahman is the founder of Tutorsbot, building AI-powered tools for learning and career growth. He writes about applying AI in real products and the practi… Read more

Fazlur Rahman is the founder of Tutorsbot, building AI-powered tools for learning and career growth. He writes about applying AI in real products and the practical side of building an ed-tech startup.