Mark Langshaw
Author: Mark Langshaw
Lee Trett
Peer-reviewed by: Lee Trett
Updated 24 January 2026

A quick overview of mortgage rates

 

Mortgage rates are a core component of mortgage repayments as the rate you qualify for helps determine how much your agreement will cost. There are many variables that affect mortgage rates, including the economic climate and the lender’s appetite for risk.

You can read more and compare the latest deals in our guide to mortgage rates.

Factors that affect mortgage rates

The mortgage rates available are determined by the following factors.

  • The Bank of England’s base rate

  • Wider economic factors

  • Mortgage lenders’ appetite for risk

  • The applicant’s credit history

  • The amount of deposit the applicant can put down

How mortgage rates have changed over the years

The biggest factor that shapes mortgage rates in the UK is the Bank of England’s base rate. Since the economic turmoil of 2022, mortgage rates have fluctuated in line with frequent changes to the central bank’s base rate, as shown in this table.

Year

Year-End Base Rate

2016

0.25%

2017

0.50%

2018

0.75%

2019

0.75%

2020

0.10%

2021

0.25%

2022

3.50%

2023

5.25%

2024

4.75%

2025

3.75%

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FAQs

Not necessarily. The headline interest rate is only one part of the cost. A mortgage with a slightly lower rate might come with high product fees (e.g., £999 or more), which could make it more expensive overall than a higher-rate deal with no fees, especially for smaller mortgages. You should always look at the "overall cost for comparison" or ask a broker to do the maths for your specific loan amount.

Get expert advice about all your mortgage & finance needs

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.

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