At the beginning of the year, it appeared as though mortgage rates might be levelling off, and analysts were optimistic that 2026 would see a steady decline. This was not to be, however. Conflict in the Middle East caused mortgage rates to spiral upwards in March, and they have remained high ever since.
As at 18 May, the average mortgage rate was 5.64 per cent, according to financial product data provider Moneyfacts. Within this, there is a fair amount of variety, however. Those looking to remortgage with a low loan-to-value ratio can still find products under 4 per cent, while the best two-year fixed residential mortgage rate is 4.55 per cent and the best five-year fixed rate is 4.67 per cent.
