Average mortgage rates rose again in September as geopolitical tensions pushed swap rates higher. Here is the picture now.
Where mortgage rates stand in September and what it means for your plans
The average two-year fixed mortgage rate stood at 5.19% and the average five-year fixed rate at 5.20% as of 12 September 2026, according to Rightmove's current mortgage rate tracker, which covers data from 95% of the mortgage market. Both rates rose by around 0.10 percentage points in the week to 12 September, continuing an upward drift that began as geopolitical tensions escalated through the summer.
The Bank of England base rate has been held at 3.75% since December 2025 and has remained unchanged through this period. The rise in mortgage rates is therefore not a base rate event. It reflects movement in swap rates, the financial market instruments that lenders use to price fixed-rate mortgages. When markets become less certain about future inflation or economic stability, swap rates tend to rise, and fixed mortgage products are repriced upward in response.
How September's rates compare to the year so far
The rate journey through 2026 has not been straightforward. Average two-year fixed rates were at approximately 4.25% before the conflict in Iran began in late February. They rose sharply to a peak of around 5.43% in April as energy prices surged and inflation expectations shifted. A partial recovery brought the average two-year rate down to around 4.92% by July, before renewed geopolitical uncertainty pushed rates back upward through August and into September.
The current average of 5.19% for a two-year fix sits above July's relative low but below April's peak. For buyers who have been tracking the market, the September position represents a deterioration from the summer's improving conditions, though rates remain below the spring high.
What the deposit size means for your rate
The rate available to a borrower depends significantly on the size of their deposit relative to the purchase price, a figure expressed as loan to value or LTV. Rightmove's data for 12 September shows the following picture across different deposit levels.
Buyers with a five per cent deposit, borrowing at 95% LTV, face an average two-year fixed rate of 5.78% and an average five-year fixed of 5.75%. Buyers with a ten per cent deposit at 90% LTV see average rates of 5.33% and 5.31% respectively. At 25% deposit and 75% LTV the average two-year rate drops to 5.05%. At 40% deposit and 60% LTV the average two-year rate is 4.72%. The lowest available rates across the market sit at 4.40% for a two-year fix and 4.58% for a five-year fix, available to borrowers with larger deposits through the most competitive products.
What this means in monthly repayment terms
Rightmove's September data, based on an average two-year fixed rate of 5.06% recorded on 4 September, illustrates the cost of the current rate environment in practical terms. On the national average asking price of £364,999, a buyer with a 20% deposit at 80% LTV faces a monthly repayment of approximately £1,717 over a 25-year term. For first-time buyers, whose typical property outside London averages £225,525, a 10% deposit at 90% LTV produces a monthly repayment of approximately £1,193. At a 20% deposit the same property costs approximately £1,061 per month.
The planning implication
Rightmove's mortgage commentary notes that while rates remain elevated, their relative stability through the summer allowed buyers and sellers to plan decisions more confidently than during the volatile spring. Stability in rate levels, even when those rates are higher than buyers would prefer, creates a planning environment that is more functional than rapid week-to-week movement. Working with a whole-of-market mortgage broker to find the best available product at the current rate level, rather than waiting for conditions that may or may not improve, remains the most practical approach in this environment.
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