Here’s Your Best Rates July 2026
The picture in July is calmer than it has been for most of this year, but “calmer” doesn’t mean settled. Swap rates have continued to ease back from their spring peak, and lenders that spent the last few months pricing defensively are now, cautiously, competing for business again.
NatWest, Barclays, TSB and Santander all trimmed fixed rates in June, and that trend has carried into July as the peace deal between the US and Iran has taken some of the heat out of oil prices — and, with it, some of the inflation risk that had been pushing lenders to price up. The best five-year fixed rate in the market is now around 4.33% for those with a healthy deposit or equity, and the sharpest two-year tracker deals are sitting close to 3.96%, both notably below the headline averages you’ll see quoted in the press.
The key dynamic this month is that the Bank of England has now held the base rate at 3.75% for a fourth consecutive meeting, and did so again on 18 June by a 7–2 vote. Markets are currently pricing in another hold at the next Monetary Policy Committee decision on 30 July, rather than the cut some had hoped for earlier in the year — but nor is a rise seen as likely at this meeting. That relative stability is exactly why lenders have felt able to compete on price again: less uncertainty about where the base rate is heading means less need to price in a margin of safety.
That said, the caution hasn’t disappeared. Inflation is still running above the Bank’s 2% target, and forecasters remain split — some expect a rate rise later this year if energy costs stay elevated, others still see room for a cut if inflation cools faster than expected. UK interest rate forecasts for the year now range as widely as 3.5% to 4.25%, which tells you how much disagreement there still is about the path ahead.
What this means for you: if your current deal is ending in the next six months, this looks like a good window to act. Lenders tend to reprice around MPC meetings, often before the announcement itself, so the weeks running up to 30 July are worth watching closely. We can secure today’s rate now and keep the option open to switch before completion if pricing improves further — so there’s little downside to locking something in early.
Here’s your best rates in the market today:
If you’d like to review your current mortgage, discuss a remortgage, or explore your options, please get in touch.
