Mortgage Rate Update 13/05/26

KateD
2 hours ago
2 min read

Hi All,

Please see below the latest table of the best available purchase rates across the main mortgage options and loan to value(LTV) bands.

It’s been a positive week for mortgage pricing, with reductions across all fixed‑rate purchase products and some meaningful improvements in the remortgage market for the first time in a while.

We are now seeing a noticeable gap between purchase and remortgage rates, which reflects the current level of competition for purchase business. Lenders typically favour purchase lending as it provides a stronger opportunity to build relationships with new clients, cross‑sell additional products and retain that business over the longer term. As a result, pricing in this space is often more competitive.

However, there are some underlying pressures building. SONIA swap rates have now reached their highest levels since 2024, which increases lenders’ funding costs and may begin to feed through into mortgage pricing. Lenders will be watching closely to determine whether this is a short‑term spike or the start of a sustained upward trend.

Looking ahead, the next inflation release is expected to show a further increase, likely around 3.6%, driven largely by elevated energy prices linked to the ongoing US/Iran conflict. This is likely to add upward pressure on both swap rates and mortgage pricing.

In addition, recent political uncertainty, particularly around the Labour leadership, has contributed to further volatility in financial markets, with gilt yields and swap rates both moving higher, including longer‑dated gilts reaching fresh highs.

As always, the key message remains: 👉 Securing a mortgage rate early is crucial.

This allows us to lock in current pricing and protect clients from potential increases, while still retaining the flexibility to switch to a lower rate should the market improve before completion.

Purchase mortgages

Total change across the board: 0.97% decrease
Fixed rate change: 1.17% decrease
Variable change: 0.2% increase
Biggest drop: 5 year fixed at 60% LTV dropping 0.14%
Biggest increase: Discount at 95% LTV increasing by 0.2%!!

Remortgages

Total change across the board: 0.76% decrease
Fixed rate change: 0.96% decrease
Variable change: 0.2% increase
Biggest drop: 2 year fixed at 85% LTV dropping a huge 0.18%!!
Biggest increase: Discount at 95% LTV increasing by 0.2%!!

Please don’t hesitate to contact us if you would like further information on these.