Sub-4% mortgages are back, even with the base rate on hold

Two things that usually move together pulled apart in June 2026. The base rate is the interest rate the Bank of England sets. A fixed mortgage rate is the rate a lender locks in for a set period, often two or five years. The Bank held its rate steady, yet lenders kept trimming their fixed deals, which is why the headlines about cheaper mortgages and an unchanged base rate are both true at once.

What mortgage rates are actually available now?

Rates move constantly, so these are a snapshot from June 2026 rather than a promise. The pattern, though, is clear: the sharpest deals dipped back under 4%, but only for buyers with a large deposit.

Why are rates falling if the Bank held the base rate?

Fixed mortgage rates are not set directly by the base rate. They are priced off what markets expect interest rates to do over the next few years, plus how hard lenders want to compete for business. In June 2026 lenders competed hard: the number of residential mortgage products rose from 6,784 at the start of May to 7,132 in June, passing 7,000 for the first time since March. More competition and expectations of future cuts pushed the best fixes down, even with the Bank on hold.

Will mortgage rates keep falling in 2026?

That is far from certain. The Bank of England has signalled that inflation is likely to rise again later in 2026 on higher energy and food costs, which could slow or stop further cuts. The next base rate decision is due on 30 July 2026, and forecasts for where rates land this year range widely, from about 3.5% to 4.25%. The honest position is that today's cheaper fixes are welcome, but nobody should bank on much larger falls to come.

What does this mean if I'm selling?

• Cheaper borrowing tends to bring more able buyers into the market, which supports demand for well-priced homes.
• Because the base rate held rather than fell, expect steady interest rather than a sudden surge.
• Realistic pricing still wins, since lower rates do not make buyers overpay for an over-valued home.
• Remember a buyer's mortgage offer still takes weeks to come through, so factor that into your timeline.

What does it mean if I'm buying?

• Shop around or use a broker, because the gap between lenders is wide and the best rate is rarely your own bank by default.
• A bigger deposit unlocks the lowest rates, so even a small increase in deposit can move you into a cheaper band.
• Get an agreement in principle early, which shows sellers you are a serious buyer.
• Compare the true cost including fees, as a low headline rate with a high fee is not always the cheapest overall.

Whether you are buying, selling, or both, it helps to know the direction of travel before you commit. ValuQ is a platform that gives UK homeowners free, side-by-side property valuations from competing local estate agents, so you can decide your timing on the facts. You can also track where average UK mortgage rates have moved over time using ValuQ's free mortgage rate tracker.

Cheaper fixes and an unchanged base rate are both true at once. Fixed rates follow where the market thinks the Bank is heading, not just where it is today.