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Mortgage Rate Trends at the Start of 2026

Overview of Current Mortgage Rates

As we enter the year 2026, mortgage rates remain relatively stable, with minimal fluctuations in pricing. According to recent insights from Moneyfacts, only four lenders made any modifications to their mortgage rates during the initial week of the year. This lack of significant movement in rates may come as a relief for those considering mortgage options.

Detailed Rate Analysis

Average Mortgage Rates

Currently, the average two-year fixed mortgage rate stands at 4.83%, a slight increase from 4.82% as recorded in the previous Rate Watch by Moneyfacts. Meanwhile, the average five-year fixed rate has seen a small uptick, now at 4.91%, marking an increase of 10 basis points (bps) from 4.90% observed in December 2025.

Rate Changes This Week

This week’s adjustments include a 10bps decrease in the average five-year fix for mortgages with up to 65%, 80%, and 95% loan-to-value (LTV) ratios, while the two-year fixes for 75% and 85% LTV, five-year fixes for 85% LTV, and ten-year fixes for 75% LTV experienced 10bps increases.

Lenders Adjusting Rates

The following lenders made notable changes to their mortgage offerings this week:

• Leeds Building Society: Reduced selected fixed-rate mortgages by as much as 20bps and rolled out new deals specifically aimed at first-time buyers.
• Accord Mortgages: Adjusted selected fixed-rate mortgages with increases of up to 18bps or reductions of up to 16bps.
• Yorkshire Building Society: Withdrawn selected fixed mortgages.
• Coventry Building Society: Reduced selected fixed-rate mortgages by a noteworthy 30bps.

Expert Insights

Commentary from Moneyfacts

Rachel Springall, a finance expert at Moneyfacts, commented on the current mortgage landscape, stating, “It has been predictably quiet in the mortgage market this week; however, this presents an excellent opportunity for borrowers to revisit their current deals and prepare for any upcoming refinancing. Those intending to stick with their existing lender should verify the competitive rates since there were some advantageous cuts made in December."

Springall further highlighted that Leeds Building Society has introduced appealing deals for first-time buyers to kick off the New Year. “Affordability is still a major concern for many borrowers; thus, witnessing reduced rates is particularly beneficial for those with smaller deposits, as it can create a significant impact on their overall financial commitments.”

How AI legalese decoder Can Help

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By utilizing resources like the AI legalese decoder, borrowers can confidently maneuver through the mortgage landscape, ensuring they’re always well-informed when it comes to rates, terms, and lender offerings.

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