Mortgage Rates August 2026: Should You Wait Before Moving?
Mortgage rates remain above 5% on average, but the picture is more nuanced than the headline suggests. If you are buying, selling or simply wondering whether to wait, here is what the latest mortgage market actually means for your next move.
Mortgage Rates Are Above 5%. Should You Wait Before Moving?
If you are thinking about moving home, you have probably asked yourself the same question as thousands of other buyers and sellers.
Should I wait for mortgage rates to come down?
It is an understandable question.
The average 2 year fixed mortgage rate currently sits at 5.07%, while the average 5 year fixed rate is 5.10%.
Go back 12 months and those averages were 4.49% and 4.49% respectively.
So yes, borrowing has become more expensive.
But deciding whether to move based purely on that headline could mean missing a much bigger part of the picture.
Source: rightmove.co.uk
Your Deposit Makes A Huge Difference
One of the problems with talking about the "average mortgage rate" is that very few buyers actually experience the market in exactly the same way.
Your deposit can dramatically change the products available to you.
Rightmove's latest mortgage tracker shows the average 2 year fixed rate for somebody buying with a 5% deposit is 5.67%.
With a 15% deposit, that average falls to 5.00%.
At 25% deposit, it falls again to 4.92%.
And for buyers borrowing at 60% loan to value, the average is currently 4.63%.
The lowest rates available can be lower still, depending on your circumstances.
So when somebody tells you that "mortgage rates are 5%", that figure alone tells you very little about what your mortgage might actually cost.
Source: rightmove.co.uk
What Does This Mean For Buyers?
Before deciding what property you can afford, understand the monthly payment that comes with it.
There is an important difference between:
"The bank will lend me this much."
and
"I am comfortable paying this much every month."
That distinction matters even more when borrowing costs are higher.
Knowing your numbers before you start viewing means you can search realistically, avoid wasting time on properties that simply do not work financially and move quickly when the right opportunity appears.
It also puts you in a stronger position when making an offer because you already understand exactly what you can afford.
Planning your next move?
But Mortgage Rates Are Not Moving In One Direction
This is where the current picture becomes more interesting.
The Bank of England has held Bank Rate at 3.75% since December 2025.
At its July meeting, 6 members of the Monetary Policy Committee voted to keep rates unchanged, while 3 voted to increase Bank Rate to 4%.
The next decision is due on 17 September 2026.
That split tells us something important.
There is still uncertainty around where rates go next.
Inflation has fallen, but the Bank of England has also warned that energy prices and wider economic conditions could continue to influence inflation during the remainder of the year.
In other words, anyone waiting for a guaranteed sequence of interest rate cuts could be waiting for something that nobody can currently promise.
Source: bankofengland.co.uk
So Should You Wait For Mortgage Rates To Fall?
This is probably the most important question.
And there is no universal yes or no answer.
Imagine mortgage rates fall significantly over the next 12 months.
That sounds fantastic for buyers.
But what happens if cheaper borrowing brings more buyers back into the market at the same time?
Competition could increase.
Sellers may become less willing to negotiate.
And desirable properties could attract stronger offers.
Equally, mortgage rates could remain around current levels for longer than expected.
Waiting therefore comes with its own risk.
Rather than asking:
"When will mortgage rates come down?"
A more useful question is:
"Does my move work financially at today's numbers?"
If it does, you can make a decision based on information you actually know.
What Does All Of This Mean If You Are Selling?
Mortgage rates are not simply a buyer problem.
They matter to sellers too.
You might own your property outright.
You might have a tiny mortgage.
You might be downsizing and barely need to borrow anything at all.
But the person buying your home may be heavily reliant on mortgage finance.
Their monthly affordability influences what they can pay.
And that means borrowing costs ultimately influence your potential buyer pool.
When buyers are more conscious of affordability, pricing a property correctly from the beginning becomes even more important.
An asking price that sits just outside a buyer's search range could mean they never discover your property in the first place.
An asking price that feels disconnected from comparable homes could mean they simply choose something else.
Want to understand where your home sits in today's market?
House Prices Have Not Suddenly Collapsed Either
This is another reason why looking at mortgage rates in isolation can be misleading.
The latest UK House Price Index shows the average UK property was worth approximately £272,000 in June 2026.
That is 2% higher than a year earlier.
In England, the average property value reached approximately £293,000, representing annual growth of 1.8%.
The West Midlands performed slightly stronger, with the average property valued at approximately £251,000, up 2.6% annually.
So despite higher borrowing costs, property values nationally remain above where they were 12 months ago.
However, growth is slowing.
UK prices increased just 0.1% between May and June, compared with a 1% increase during the same period last year.
That points towards a market that is still moving, but doing so more cautiously.
Source: gov.uk
There Is Another Number Sellers Should Pay Attention To
Transactions.
According to the latest UK House Price Index, there were an estimated 99,000 residential property transactions in June 2026.
That was actually 2.5% higher than June 2025.
This is important because it challenges the idea that higher mortgage rates mean nobody is moving.
People are still buying.
People are still selling.
Life does not stop because Bank Rate sits at 3.75%.
Families grow.
Jobs change.
Relationships change.
People relocate.
Homeowners downsize.
First time buyers get onto the ladder.
The market continues.
The question is not whether people are moving.
It is how prepared you are to compete for them.
Source: gov.uk
For Sellers, Presentation Matters Even More In This Market
When buyers have tighter budgets, perceived value becomes incredibly important.
Think about how somebody discovers your property.
They are probably scrolling through Rightmove or another portal alongside dozens of competing homes.
Within seconds, they are making judgements.
Does this look worth £500,000?
Does that kitchen need replacing?
How does the garden compare?
Why is this property £25,000 more than the one around the corner?
Would I actually want to live here?
This is why marketing cannot simply mean taking photographs and uploading a listing.
Your photography, video, presentation, launch strategy, description and pricing all influence how valuable your property feels to the buyer.
When affordability is under pressure, giving buyers a reason to choose your home becomes even more important.
See how we approach marketing our clients' homes:
The Avenue View
There will always be a reason to wait.
Wait for mortgage rates to fall.
Wait for house prices to rise.
Wait until spring.
Wait until after the next Bank of England announcement.
But nobody gets to move with the benefit of hindsight.
The better approach is to understand the market you are actually operating in.
For buyers, that means knowing your affordability and being ready when the right home appears.
For sellers, it means understanding your competition, pricing intelligently and presenting your property in a way that earns attention.
And for anyone thinking about doing both, it means looking at the entire move, rather than obsessing over one percentage.
Because a slightly higher mortgage rate does not automatically make moving a bad decision.
Just as a slightly lower mortgage rate would not automatically make it a good one.
Key Takeaways
• The average 2 year fixed mortgage rate is currently 5.07%.
• The average 5 year fixed mortgage rate is currently 5.10%.
• Buyers with larger deposits can access considerably lower average rates.
• Bank Rate currently stands at 3.75%.
• The next Bank of England interest rate decision is scheduled for 17 September 2026.
• Average UK house prices remain 2% higher than a year ago.
• West Midlands property prices are approximately 2.6% higher annually.
• UK residential transactions in June were 2.5% higher than a year earlier.
• Waiting for mortgage rates to fall does not guarantee that buying conditions will become easier.
Frequently Asked Questions
What are mortgage rates in the UK in August 2026?
Rightmove's mortgage tracker shows the average 2 year fixed mortgage rate at 5.07% and the average 5 year fixed rate at 5.10% as of 22 August 2026.
Source: rightmove.co.uk
What is the Bank of England interest rate?
Bank Rate currently stands at 3.75%. The Monetary Policy Committee voted to maintain that rate at its July meeting, with the next decision scheduled for 17 September 2026.
Source: bankofengland.co.uk
Should I wait for mortgage rates to fall before buying a house?
Not necessarily. Future mortgage rates cannot be predicted with certainty, and lower borrowing costs could also encourage more buyers into the market. The more useful question is whether the property and monthly payments work for your finances today.
Does a bigger deposit reduce my mortgage rate?
Generally, buyers with a lower loan to value have access to more competitive mortgage products. Rightmove's latest data shows a clear difference between average rates available at 95%, 85%, 75% and 60% loan to value.
Are people still buying houses despite higher mortgage rates?
Yes. The latest official figures estimate approximately 99,000 UK residential transactions took place in June 2026, which was 2.5% higher than the same month in 2025.
Source: gov.uk
Thinking About Moving?
You cannot control what the Bank of England does next.
But you can understand your own position.
If you are considering selling, start by understanding where your property sits in today's market.
Or speak directly with the Avenue Partner responsible for your area.