UK official statistics (ONS, Bank of England, DEFRA, HMRC, DBT, and DfT) · · Revised 1 series
UK October 2026 mortgage rates: 2-year fixed quote hits 5.39%, highest since 2023
The Bank of England's average quoted rate on a 2-year fixed mortgage rose to 5.39% in October from 5.13% in September. That is the highest since October 2023, so new fixed-rate home loans now cost more.
A data update from FactIQ, written from UK official statistics (ONS, Bank of England, DEFRA, HMRC, DBT, and DfT) figures. What is FactIQ?
Key figures
- UK average quoted 2-year fixed mortgage rate, 75% loan-to-value, October
- 5.39%up from 5.13% in September; highest since October 20232022-11-302026-10-31Monthly interest rate of UK monetary financial institutions (excl. Central Bank) sterling 2 year (75% LTV) fixed rate mortgage to households (in percent) not seasonally adjusted
- UK average quoted 5-year fixed mortgage rate, 75% loan-to-value, October
- 5.19%up from 4.98%2022-11-302026-10-31Monthly interest rate of UK monetary financial institutions (excl. Central Bank) sterling 5 year (75% LTV) fixed rate mortgage to households (in percent) not seasonally adjusted
- UK 10-year government bond yield, 4 November
- 5.136%about 24bp below the 19 October high of 5.374%2026-08-282026-11-04Yield from British Government Securities - 10 year Nominal Par Yield
- US dollars per pound, 5 November
- 1.3476from 1.3301 on 28 October2026-09-012026-11-05Spot exchange rate - US $ into Sterling
Fixed mortgage quotes have risen steeply this year
The Bank of England publishes the average rate lenders quote on new mortgages. These quotes show what borrowers pay when they take out or renew a home loan. The 2-year fixed quote is for a loan worth 75% of the property's value, known as the loan-to-value (LTV) ratio. It stood at 3.93% in January, so it is up roughly 146 basis points (hundredths of a percentage point) this year. The largest jumps came in March and April and again from July onward. The October rate of 5.39% is above the 2024 peak of 5.19%. It is below the 5.60% reached in October 2023. The 5-year fixed quote rose to 5.19% from 4.98%.
Gilt yields fell before the Bank Rate rise
The Bank's Monetary Policy Committee voted unanimously to raise Bank Rate to 4%. On 4 November, the day before the vote, the Sterling Overnight Index Average (SONIA) was still 3.7335%. SONIA is the average rate banks pay to borrow overnight, and it will reflect the rise only from its next readings. Gilts are UK government bonds, and their yields fell in the days before the decision:
- 10-year: 5.136% on 4 November. That was down 7 basis points on the day and about 24 basis points below the 19 October high of 5.374%.
- 5-year: 4.78%.
- 20-year: 5.45%.
Sterling strengthened
The pound reached 1.3476 US dollars on 5 November, up from 1.3301 on 28 October. It jumped on 4 November after the US midterm elections. The sterling trade-weighted index measures the pound against a basket of currencies. It hit 86.60, its high of the past two weeks. The pound bought about 1.20 euros and 212.75 yen.
Variable and savings rates barely moved
The revert-to-rate is the standard variable rate a mortgage moves to when a fixed deal ends. It stayed at 6.58% for a seventh month. The average rate on instant access savings deposits edged up to 2.08%. August and September were revised to 2.07%, from 2.03% and 2.06%.
Source: UK official statistics (ONS, Bank of England, DEFRA, HMRC, DBT, and DfT). See all UK data in FactIQ.