Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Lender U-turn on Fixed Rates Wipes Out Recent Mortgage Gains

Average fixed mortgage rates in the UK have risen sharply since February 2026, erasing the reductions seen earlier in the year. The reversal has increased affordability pressures for borrowers, particularly those with higher loan-to-value (LTV) ratios.

Average two-year fixed mortgage rates fell to 4.85% in February 2026, down from 5.57% in August 2024. However, by August 2026, the average rate had climbed to 5.63%, reversing most of the previous gains. Five-year fixed rates followed a similar pattern, dropping from 5.38% in August 2024 to 4.94% in February 2026, before rising to 5.66% by August 2026.

Borrowers with the highest LTV ratios have experienced the sharpest deterioration in affordability. At their lowest point in February 2026, two-year and five-year fixes for these borrowers stood at 5.42% and 5.41% respectively, but by August 2026 had increased to 6.2% and 6.08%. Lower-risk borrowers at 60% LTV also saw notable increases: the average five-year fixed rate rose from 4.53% in February 2026 to 5.46% in August 2026, while the two-year fixed rate increased from 4.21% to 5.17% over the same period.

The average standard variable rate (SVR) stood at 7.13% in August 2026, down from 7.42% a year earlier, but still significantly higher than fixed rates. The highest SVR recorded was 8.19% in November and December 2023.

Product shelf life has shortened considerably, with mortgage products now available for an average of 11 days, compared to 33 days when rates were at their lowest in February 2026. The incentive to remortgage remains strong, as fixed rates are still lower than the average SVR.

Despite the recent volatility, the number of available mortgage products has increased over the past two years. There are around 700 more products available than in August 2024, an 11% rise. At 95% LTV, product numbers grew from 353 in August 2024 to 495 in August 2026, a 40% increase. At 60% LTV, product numbers rose from 755 to 831, a 10% increase.

These developments are relevant for letting agents and inventory clerks monitoring affordability and product availability for landlords and tenants in the UK property market.