Brokers report a surge in borrowers reconsidering their options
UK fixed mortgage rates have fallen for two consecutive months as swap rates ease, even though the Bank of England base rate has not moved since December.
Tracker pricing, by contrast, remains anchored to a 3.75% base rate that policymakers have now held four times running.
That split is shaping a wave of lender repricing this week, with Family Building Society's latest product refresh sitting squarely at the intersection: fixed rate cuts on one side, a new range of Bank of England-linked trackers on the other.
Two pricing mechanisms, two different stories
The average two-year fixed mortgage rate fell to 5.68% in June 2026, the largest monthly fall in over a year, even as the base rate has stood at 3.75% since December 2025.
The falls are lender-driven rather than base-rate-driven, reflecting easing swap rates and sharper competition for remortgage business as roughly 1.8 million fixed deals come up for renewal this year.
Family Building Society's own fixed-rate cuts fit that pattern. The Society has cut its two-year fixed rate by 30 basis points and its two-year UK Landlord rates by 10 basis points, alongside a wider refresh of its product range.
Within the Buy to Let fixed range at 75% LTV, two-year UK Landlord pricing is now set at 5.19% (2.00% fee) and 5.64% (1.00% fee), while the five-year UK Landlord rate stands at 5.79% with a 1.00% fee.
Limited company landlords are quoted two-year rates of 5.39% and 5.84%, and a five-year rate of 5.79%, all at 75% LTV. Expat landlords are quoted two-year rates of 5.49% and 5.89%, a two-year rate of 5.94%, and expat landlords borrowing through a limited company face 6.04% over two years and 6.14% over five years.
Trackers move differently, and pricing varies sharply by lender
Family Building Society has also introduced a new range of two-year interest-only tracker products for owner-occupiers, as well as UK and expat Buy to Let landlords, including those borrowing through limited company special purpose vehicles (SPVs). The new owner-occupier tracker is priced at 5.54% at 80% LTV with a £999 product fee.
New Buy to Let tracker pricing, set at 75% LTV with a 1.00% fee, includes 5.34% for UK Landlords, 5.39% for limited company borrowers, and 5.39% for expat landlords, all on two-year terms.
Tracker pricing varies considerably across the market. NatWest has cut its two-year tracker from 4.96% to 4.41%, while the lowest tracker rate currently available is from Halifax at 3.96%, both well below the levels seen in Family Building Society's new range, though direct comparisons depend on lender criteria, fees and the borrower segment each product targets.
"Brokers have told us that enquiries for tracker products are on the increase,” said Darren Deacon, Head of Intermediary Sales at Family Building Society. “Our new BoE tracker rates give borrowers seeking an interest-only option greater flexibility while they wait for more stable economic and political conditions before committing to a longer-term fixed rate."
He added that "the UK housing market is facing a period of uncertainty, with confidence among homebuyers and those looking to remortgage affected by events at home and overseas."
That observation lines up with sector-wide data. Analysis from mortgage and protection network Stonebridge found that tracker products accounted for 12% of mortgage choices in April 2026, up from 4.1% in the same month the previous year, while the proportion of borrowers opting for fixed rate products fell to 87.6% from 95.4% over the same period.
HMO products return as Renters' Rights Act implementation settles
Family Building Society has reintroduced five-year fixed rate products for Houses in Multiple Occupation (HMOs), covering UK and expat landlords, having withdrawn these products in March.
The reinstated range, priced at 75% LTV with a 1.00% fee, runs from 5.84% for a two-year UK Landlord HMO product to 5.99% for the two-year equivalent. Limited company HMO pricing is set at 6.04% over two years and 5.99% over five years, while expat HMO rates are 6.09% over two years and 6.14% over five years.
The timing follows the Renters' Rights Act, which came into force on 1 May, and represents the most significant overhaul of landlord and tenant law in years.
The Act makes no direct changes to HMO licensing, but the wider reforms — including the end of Section 21 evictions and the abolition of fixed-term tenancies — are felt particularly by HMO landlords, partly because jointly liable HMO tenancies can end for all occupants once a single tenant gives valid notice.
Family Building Society's own withdrawal in March and reinstatement in June sit either side of the Act's 1 May implementation date.
On the owner-occupier side, repayment fixed rates range from 5.49% on a five-year Core deal at 60% LTV to 5.79% on a two-year JBSP product at 90% LTV, with product fees of either £999 or £599 depending on the line.
A five-year Family Mortgage is priced at 5.79% with no product fee, available up to 100% LTV. Repayment discount rates at 80% LTV are set at 5.19% for the two-year Core product and 5.29% for the two-year JBSP product, both carrying a £999 fee. Interest-only fixed and discount rates mirror each other: 5.89% at 60% LTV and 6.04% at 80% LTV for both two-year and five-year Core products, and 6.14% at 80% LTV for the two-year JBSP product, with fees of £999 or £599.
For existing borrowers switching products or taking a further advance, fixed rates at 75% LTV range from 5.84% to 6.34% depending on borrower type, with no product fee.
Discounted variable rates for the same group are priced at 5.49% for UK Landlords and 5.84% for both limited company and expat landlords, also with no fee.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
