Remortgaging in 2026: When to Switch as Fixed Rates Ease Again
Fixed mortgage rates have started easing again after a sharp climb through the spring, and that shift changes the calculation for anyone whose deal is ending this year. The pull-back is partial rather than a return to the lows seen at the start of 2026, so the real question is not whether to hold out for a perfect rate but when a switch genuinely fits your deal, your timing and your plans. This article sets out where fixed rates sit now, why they are moving and how to judge the right point to remortgage.
For a free initial consultation about remortgaging as fixed rates ease, call 01202 155992 or contact Mortgage One.
Why fixed mortgage rates are easing again in 2026
Fixed mortgage rates are easing again because the inflation shock that pushed them up in spring is fading. UK consumer price inflation fell to 2.8% in April 2026, which has eased pressure on the swap rates lenders use to price fixed deals. Several lenders have trimmed selected fixed products over recent weeks as a result.
Fixed rates do not track the Bank of England base rate directly. They follow swap rates, the market's view of where interest rates are heading over the next few years. When the energy shock at the end of February lifted inflation expectations, swap rates jumped and lenders repriced fixed deals higher across the market. As that pressure has eased, lenders have been repricing fixed deals lower again, though in selective steps rather than one sweeping cut.
Where two and five-year fixed rates sit right now
In early May 2026 the average two-year fixed rate stood at about 5.78% and the average five-year fix at about 5.68%, with the Bank of England base rate held at 3.75%. Both averages had eased from their spring peak and edged lower again through late May. Individual rates vary widely by loan-to-value, deposit and fees.
Those averages climbed from about 4.84% on a two-year fix and 4.96% on a five-year fix on 6 March 2026, before the spring spike, so the market is still some way above where it started the year. Headline averages also hide a wide spread, because at lower loan-to-value bands, with larger deposits or higher product fees, the sharpest fixed rates can sit a full percentage point below the published average. You can compare current two and five-year fixed rates as a starting point, but a quote for your own loan-to-value and circumstances is what matters.
Is now a good time to remortgage your home?
For many borrowers coming off a cheaper fixed deal, reviewing a remortgage now makes sense even though average rates sit above early-2026 lows. The decision turns on your deal's end date, any early repayment charge, your loan-to-value and your plans, not on trying to time the exact bottom of the market. Waiting for a perfect rate rarely pays.
Trying to second-guess the bottom of the rate cycle is difficult even for the market, and the cost of guessing wrong is real. If your fixed deal ends within the next six months, the more useful step is to line up a new deal now and keep it under review, rather than wait and risk lapsing onto a higher standard variable rate. A sound remortgage decision weighs the total cost of switching, fees and any early repayment charge included, against staying put, where remortgage advice can run the figures for your own case. The broader process, including when a product transfer with your current lender may be worth comparing, is covered in our remortgaging guide.
To weigh up whether switching now fits your own deal and circumstances, call 01202 155992 or contact Mortgage One.
Can you remortgage before your fixed deal ends?
Yes. You can usually start arranging a remortgage up to six months before your current deal ends, and many lender offers stay valid for three to six months. Remortgaging early can let you secure a rate ahead of your switch, but you need to weigh any early repayment charge for leaving your current deal before its end date.
An early repayment charge is usually a percentage of your outstanding balance and often steps down as you approach the end of your deal, so the figures can favour either holding on or switching depending on your numbers. Where the saving from a new rate clearly outweighs the charge, securing a deal early can be worth it. Where it does not, lining the remortgage up to complete as your current deal ends is usually the cleaner route. A remortgage to a new lender typically takes around four to eight weeks from application to completion, and can be quicker as a product transfer, so starting in good time stops you slipping onto the standard variable rate by default.
What drifting onto your lender's standard variable rate costs
When a fixed deal ends and you do nothing, you revert to your lender's standard variable rate. The average standard variable rate was about 7.13% in May 2026, well above typical fixed rates, so drifting onto it can add several hundred pounds to a monthly payment on a typical loan. It is the most expensive way to do nothing.
A standard variable rate is set by the lender and can change at any time, with no cap tied to the base rate, which makes budgeting harder than on a fixed or tracker deal. For most borrowers the gap between that rate and an available fixed or tracker rate is the single strongest reason to act before a deal ends rather than after. If you have already lapsed onto a standard variable rate, switching away from it is usually still worthwhile.
What the 18 June Bank of England decision could mean
The Bank of England's next interest rate decision is on 18 June 2026, with the base rate currently held at 3.75%. Markets broadly expect another hold. Because fixed mortgage rates are driven by swap rates rather than the base rate itself, they can still move on the tone of the decision and the inflation data around it.
At its last meeting on 30 April 2026 the Monetary Policy Committee voted by eight to one to hold the base rate, with the single dissenting vote favouring a rise to 4%. That split, alongside the cooler April inflation reading, is why the outlook is finely balanced rather than clearly pointing down. Fixed pricing will keep reacting to swap rates between now and any move, so the practical takeaway for a remortgage is to prepare a switch and keep it under review rather than wait on a single decision. You can follow where the market expects rates to head in our Bank of England base rate forecast.
For a confidential review of your remortgage timing and the options open to you, call 01202 155992 or contact Mortgage One.
Back to Rate Forecast and Economic Drivers
The information provided in this article is for general guidance only and does not constitute personal or regulated financial advice. If you'd like to understand what these moves could mean for you, speak to Mortgage One. We can explain your options and timings based on your specific circumstances.
FAQs
1. Is now a good time to remortgage in 2026?
Reviewing a remortgage now makes sense for many borrowers coming off a cheaper deal, even though average rates sit above early-2026 lows. The right timing depends on your deal's end date, any early repayment charge, your loan-to-value and your plans, rather than trying to predict the exact bottom of the rate cycle.
2. Should I remortgage now or wait for rates to fall further?
Fixed rates have eased but the outlook is finely balanced, and waiting carries the risk of lapsing onto a higher standard variable rate or of rates moving higher again. Lining up a deal now and keeping it under review until completion gives you the option to benefit from further falls without leaving yourself exposed.
3. Can you remortgage before your fixed deal ends?
Yes. You can usually apply for a new deal up to six months before your current one ends. Remortgaging early can secure a rate ahead of your switch, but you need to weigh any early repayment charge for leaving your existing deal before its end date.
4. How long does a remortgage take?
A remortgage to a new lender typically takes around four to eight weeks from application to completion, and can be quicker as a product transfer with your existing lender. It varies by lender, property and how complex your income is. Starting around six months before your deal ends helps avoid a gap.
5. Will fixed mortgage rates keep falling in 2026?
No one can say for certain. Fixed rates follow swap rates and the inflation outlook rather than the base rate alone, and both can change quickly, as the spring spike showed. Most market expectations point to rates settling rather than returning to the very low levels of recent years, but forecasts shift, so plan around your own deal rather than a prediction.
6. Is a product transfer or a full remortgage better?
Neither is automatically better. A product transfer with your current lender can be simpler where your balance and circumstances are broadly unchanged, while a full remortgage to a new lender can open up more options if you want to borrow more, change your term or improve your rate. Comparing both on total cost, not headline rate alone, is the sensible approach.