THE PROPERTY FILTER TAKE
Nationwide raised selected fixed and tracker rates by up to 0.20% from 10 September. That was one move inside a repricing cycle that took the average two-year fix to 5.73% by 15 September (Moneyfacts, via IFA Magazine).
Nationwide's cheapest two-year fix at 4.63% now sits about 1.10 percentage points below the 5.73% market average. On £200,000 of borrowing that gap is just over £183 a month of interest.
Consider re-running your affordability numbers against the market average rather than the headline best buy, and speak to your broker about which end of that gap you qualify for.
UK fixed mortgage rates are still climbing, and the average two-year fix reached 5.73% on 15 September 2026 (Moneyfacts data to 15 September 2026, reported by IFA Magazine). Nationwide's increase of up to 0.20% across selected fixed and tracker products from 10 September was not an isolated move (Mortgage Strategy, 9 September 2026). It sits inside a two-round repricing cycle that has run through the major lenders all month.
Where do fixed mortgage rates actually sit right now?
The averages tell a different story from the advertised best buys. Moneyfacts data to 15 September 2026, reported by IFA Magazine, puts the average two-year fix at 5.73% and the average five-year fix at 5.78%. In August 2026 the same series showed 5.63% and 5.66%. That is a rise of 0.10 and 0.12 percentage points in roughly six weeks.
Go back further and the trend is clearer. In March 2026 the same series showed a two-year average of 4.84% and a five-year average of 4.96% (Moneyfacts data to 15 September 2026, via IFA Magazine). The market gave back its early-2026 improvement and then some. If you are budgeting from a spring quote, the number worth testing against has moved by close to a full percentage point. Our free BTL stress test calculator re-runs rental coverage against a stressed rate rather than the rate on the poster.
The gap matters more than either number alone. Nationwide's cheapest two-year fix went from 4.48% to 4.63% (Mortgage Strategy, 9 September 2026). Set that against the 5.73% average and the spread is about 1.10 percentage points. On £200,000 of borrowing, that spread is £2,200 a year of pure interest, or just over £183 a month.
Cheaper deals sat elsewhere in the market. Aaron Strutt of Trinity Financial told Mortgage Strategy (9 September 2026) that Halifax had the most competitively priced two-year fix from 4.40% with a £999 fee. That rate was open only to borrowers earning over £100,000 and willing to open a Lloyds Premier current account. Halifax priced its two-year fix at 4.60% for home buyers earning less than £100,000, and Santander's two-year fix was 4.52% with a £1,499 fee.
What Nationwide's repricing actually covered
This was a move on selected products spanning several of Nationwide's ranges rather than a single product tweak. Mortgage Strategy (9 September 2026) reported increases of up to 0.20% across first-time buyer, home mover and existing customers moving home products. Remortgage (switching your loan to a new lender), switcher (moving to a new deal with your current lender) and additional borrowing ranges moved too, along with trackers.
Two named changes anchor the scale. The cheapest two-year fix moved from 4.48% to 4.63%, a rise of 0.15 percentage points. A five-year fix moved from 4.50% to 4.59%, a rise of 0.09 (Mortgage Strategy, 9 September 2026). On £200,000 of borrowing, 0.15 percentage points is £300 a year of interest, or exactly £25 a month. At the top of the range, 0.20 percentage points is £400 a year, or just over £33 a month.
Strutt told Mortgage Strategy that "Nationwide's cheapest two-year fix is going up from 4.48% to 4.63% which is frustrating". He said Nationwide last changed its mortgage rate pricing on 18 August, which he described as quite a long time in the current economic climate. Buy-to-let pricing moved on its own track, as we covered in our report on buy-to-let rate rises at HSBC, Santander and Nationwide.
Why are swap rates pushing fixed rates up?
Swap rates are what lenders pay to fix their own funding costs, and they set the floor under fixed mortgage pricing. Mortgage Solutions reported on 7 September 2026 that the two-year swap stood at 4.26% on 3 September, up from 4.06% a month earlier. The five-year swap sat at 4.36%, up from 4.16%. Both moved 0.20 percentage points in a month. Nationwide's maximum increase was also 0.20%.
The longer comparison is starker. The same report put the two-year swap at around 3.33% in late February. It has risen roughly 0.93 percentage points since then.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, gave the reason to Mortgage Solutions (7 September 2026). Pricing margins among major lenders "are under pressure due to renewed volatility in the swap rate market, so it is somewhat inevitable for them to adjust rates." IFA Magazine reported that NatWest, Santander, HSBC, Lloyds Bank and TSB had each repriced twice since early September. For how lenders price and what a broker can shift, our negotiation and finance blog hub goes deeper.
What the tracker increase tells you
The tracker part of the move is the most revealing line in the story. A tracker mortgage is priced as Bank Rate plus a fixed margin. The Bank of England held Bank Rate at 3.75% on 17 September 2026 on a 6-3 vote. Three members preferred an immediate rise to 4% (Bank of England, September 2026 Monetary Policy Summary).
So the base rate did not move, but tracker pricing did. That is arithmetic rather than interpretation. If the rate rises while Bank Rate is flat, the margin above Bank Rate widened. In aggregate the average two-year tracker rate has barely shifted, sitting at 4.53% on 15 September against 4.52% in August (Moneyfacts, via IFA Magazine). This is lender-specific repricing, not a whole-market move.
Inflation is the pressure behind it. CPI ran at 3.1% in August 2026 (Bank of England, 17 September 2026). The Committee said it "stands ready to act as necessary to ensure that CPI inflation remains on track to meet the 2% target in the medium term". Three of nine members voting for a rise is a meaningful minority. For framing the fixed-versus-variable decision, our property investment strategies hub is a useful starting point.
Key takeaways
The average two-year fixed mortgage rate hit 5.73% on 15 September 2026, up from 5.63% in August (Moneyfacts, via IFA Magazine).
Nationwide raised selected fixed and tracker rates by up to 0.20% from 10 September, across its first-time buyer, home mover, remortgage, switcher and additional borrowing ranges (Mortgage Strategy).
The two-year swap rate rose 0.20 percentage points in a month to 4.26% on 3 September, and roughly 0.93 points since late February (Mortgage Solutions).
Bank Rate held at 3.75% on 17 September on a 6-3 vote (Bank of England), so this month's fixed rate rises came from funding costs, not base rate.
The spread between Nationwide's cheapest two-year fix at 4.63% and the 5.73% average is about 1.10 percentage points, or just over £183 a month on £200,000.
Frequently asked questions
Why are fixed mortgage rates rising when the Bank of England has not raised Bank Rate?
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What is the Bank of England base rate right now?
