When you’re planning to buy a home or remortgage, understanding the potential cost is crucial. A major part of that cost is the mortgage interest rate — which leads many to ask:

“What is the average mortgage interest rate in the UK?”

While averages can offer a general benchmark, the actual rate you’re offered depends on multiple personal and market factors. This guide breaks down why averages can be misleading, what affects your rate, and how to find out what’s realistic for you right now.

Why there’s not really a single ‘average’ mortgage rate

There’s no one-size-fits-all when it comes to mortgage interest rates. While media outlets or financial websites might share an “average” rate, these are based on broad assumptions.

Five key reasons averages vary:

  1. Loan-to-value (LTV): Lower LTVs (i.e. bigger deposits) often get better rates.
  2. Product type: Fixed rates (2-year, 5-year, 10-year) vs variable, tracker, or discounted rates all differ.
  3. Credit score: Borrowers with excellent credit are offered better rates. (Read more “What credit score do you need to buy a house?”)
  4. Fees: Some deals offer low interest but charge high fees, skewing averages.
  5. Market dynamics: Rates change daily due to lender competition and funding costs.

So, while an average might say “5%”, someone with a 40% deposit and great credit could be offered 4%, while another person might be quoted 6.5%.

Where can you find current mortgage rates?

Mortgage rates change frequently, but here are reliable sources:

Comparison sites like OneDome

Useful for viewing live deals tailored to your deposit, income, and goals. Just remember these are headline rates – eligibility varies.

Start your mortgage comparison here 

Financial news & data

Sites like Moneyfacts and national newspapers publish regular market trends (e.g. average 5-year fixed at 75% LTV).

Bank of England statistics

The Bank publishes official data on average rates, but this often has a time lag so it might not reflect today’s rates.

Mortgage brokers & advisors

Whole-of-market brokers (like our trusted team at OneDome) can provide real-time quotes LINK based on your actual circumstances not just estimates.

Always remember, the mortgage market is dynamic. Rates seen today might be different tomorrow.

What influences the general level of mortgage rates?

Mortgage rates are influenced by a mix of economic forces:

  • The Bank of England Base Rate
    Directly affects tracker and variable mortgages, and indirectly influences fixed rates.
  • Swap Rates
    These indicate market expectations for interest rates, used by lenders to price fixed-rate products.
  • Lender Competition
    More competition = more attractive deals.
  • The General Economic Climate
    Inflation, GDP growth, and market uncertainty all influence lender behaviour.

What factors determine your specific interest rate?

While market averages fluctuate, the actual mortgage interest rate you are offered ultimately comes down to your individual profile, situation and choices. There are several factors most lenders will look at:

Your Deposit and Loan-to-Value (LTV)

This is arguably the biggest factor that influences the rate you’ll pay. Always remember, more equity = lower risk = better rates typically.

Your Credit Score

Often a strong score unlocks the most competitive deals.

The Mortgage Product You Choose

The type of rate (fixed/variable), the deal length and associated fees all impact the final rate.

Your Overall Financial Situation

Lenders assess your income stability, outgoings and existing debts before making you a mortgage offer.

The Lender Itself

Each lender has its own criteria, risk appetite and pricing strategy so rates canb vary from lender to lender.

Focusing on what you can actually get is key

Instead of getting too caught up in the average mortgage interest rate at the moment, it’s much more productive to focus on finding the best rate available for your specific circumstances. While averages provide context they don’t guarantee eligibility or reflect the rate you’ll actually pay.

We strongly recommend you:
✅ Use our mortgage calculator to model repayments
✅ Get a Mortgage in Principle to see realistic borrowing power
✅ Speak to a mortgage advisor to find competitive deals for your profile

OneDome is here to help

Figuring out your true borrowing power is the essential first step to buying a home. Instead of relying on rough salary multiples get a personalised Mortgage in Principle with OneDome. It’s free fast considers multiple factors and gives you the confidence to start your property search If you have questions about how interest works, want help comparing mortgage deals or need tailored advice you can

Important: Your home may be repossessed if you do not keep up repayments on your mortgage.