UK Swap Rate Tracker
Swap rates are the behind-the-scenes numbers that lenders use to price fixed-rate mortgages. Keep an eye on them here, and you'll often see which way fixed rates are heading before the lenders change them.
This mainly affects tracker and variable mortgages. Next decision: –.
The main driver of 2-year fixed mortgage rates.
The main driver of 5-year fixed mortgage rates.
Swap rates are SONIA swap rates as at –, taken from the Bank of England's OIS curve and updated automatically every working day. "vs last month" compares with the end of the previous month. These figures are a guide, not live dealing prices.
What this means right now
How swap rates have moved
Hover over or tap the chart to see the exact figures for each month. When the blue and orange lines rise, fixed mortgage rates usually follow, and the same happens when they fall.
Month-end figures. The final point shows the latest reading.
Swap rates, explained simply
When a lender offers you a fixed rate for 2 or 5 years, it's making a promise. But the lender's own borrowing costs can change from one day to the next. A swap rate is how it protects itself.
Lenders lock in their costs
Before offering you a fix, a lender swaps its "changeable" borrowing cost for a fixed one in the money markets for the same length of time, for example 2 or 5 years. The price of that fixed deal is the swap rate.
They add their margin
The lender then adds its own margin on top. This covers its running costs, the risk of lending (smaller deposits usually mean a bigger margin) and its profit. The swap rate plus the margin gives the fixed rate you're offered.
Rates follow the market
Swap rates change every day based on what the markets expect to happen to interest rates. When they rise, lenders often reprice their fixes within days or weeks. When they fall, cheaper deals usually follow, though sometimes more slowly.
Think of it like booking a holiday
When you book a holiday months ahead, the price you pay depends on what the travel company expects costs to be later, not just what they are today. Swap rates work in a similar way. They show what the markets expect interest rates to average over the next 2 or 5 years.
That's why fixed mortgage rates can go up even when the Bank of England hasn't changed the Base Rate, and why they can come down before a Base Rate cut actually happens.
See how a fixed rate is built
Illustration only. This isn't a mortgage quote.
Bigger deposits and cleaner credit usually mean a smaller margin.
– illustrative fixed rate
Base Rate vs swap rates vs your mortgage rate
These three numbers often get mixed up. Here's how they fit together:
| Rate | What it is | What it affects |
|---|---|---|
| Base Rate | Set by the Bank of England about eight times a year. It reflects where interest rates are today. | Tracker mortgages and lenders' standard variable rates (SVRs), usually straight away. |
| Swap rates | Set by the financial markets every day. They reflect where people expect interest rates to head over the next few years. | The cost of new fixed-rate mortgages. |
| Your fixed rate | The swap rate plus the lender's margin, priced for your deposit, credit history and circumstances. | Your monthly payment for the length of the fix. |
If you already have a fixed rate, your payments don't change when swap rates move. What matters is the rate you'll get when your current deal ends.
What could a swap rate move mean for my payments?
Enter your mortgage details, then move the slider to see how your monthly payment could change if swap rates rise or fall and lenders pass that change on in full.
Capital and interest repayment. Figures are illustrative and rounded, and don't include fees. Lenders don't always pass on swap rate moves in full or straight away.
When does your current deal end?
Many lenders let you secure a new rate several months before your current deal ends. If rates go up in the meantime, you're protected, and if they come down we can often switch you to a better deal before completion.
Your questions answered
If the Bank of England cuts the Base Rate, will fixed rates fall?
Not always straight away. Markets usually expect a cut before it happens, so swap rates (and fixed rates) have often already moved by the time it's announced. What matters most is whether the decision is better or worse than the markets expected.
Why do different lenders offer different rates if they all use swap rates?
Each lender adds its own margin, depending on how keen it is to lend, its own funding costs, its targets and the type of borrower it wants. That's why comparing the whole market, which is what we do for you, can make a real difference.
How quickly do lenders change their rates after swap rates move?
When swap rates rise sharply, lenders can reprice within days, sometimes with very little notice. When they fall, cuts tend to come more gradually. If you've seen a rate you like, it's usually worth acting promptly.
Should I choose a 2-year or a 5-year fix?
It depends on your plans and how much certainty you want. A 5-year fix gives you longer budgeting peace of mind. A 2-year fix gives you flexibility if you expect to move or think rates could fall. The swap rates on this page show how the markets are pricing each one, and we'll talk you through what suits your situation.
What is SONIA?
SONIA (the Sterling Overnight Index Average) is the interest rate banks pay to borrow from each other overnight in pounds. It moves closely with the Base Rate. UK swap rates are based on SONIA, which is why you'll sometimes see them called "SONIA swaps".
I'm already on a fixed rate. Does any of this affect me?
Your payments won't change until your fix ends. It's still worth keeping an eye on swap rates, though, because they'll shape the rate you're offered next. Ideally, start talking to us around six months before your deal ends.
How often is this page updated?
The figures update automatically every working day, straight from the Bank of England. The date at the top of the page shows the latest reading. Lenders' actual rates can change at any time, so speak to us for up-to-date deals.
Not sure what this means for you?
That's exactly what we're here for. We'll explain where rates are, what's on offer for your circumstances, and help you secure the right deal at the right time, with no jargon and no pressure.
Important: This page is for general information only and isn't personal advice or a mortgage offer. Swap rates are indicative, based on Bank of England data, and may differ from the prices lenders actually pay. Examples are illustrative. Your home may be repossessed if you do not keep up repayments on your mortgage.