FX.co ★ UK Mortgage Rates Ease Slightly in January, Offering Limited Relief to Borrowers

The average mortgage rate in the United Kingdom edged down in January 2026, providing a measure of relief to borrowers after a sustained period of elevated costs. The rate slipped to 6.62% in January from 6.77% in December 2025, according to data updated on 6 February 2026.

The 0.15 percentage point decline marks a modest improvement in borrowing conditions but still leaves mortgage costs significantly higher than in the low-rate environment of recent years. While the move suggests some easing in pressure on households and homebuyers, the level of rates remains a headwind for housing affordability and refinancing activity.

Market participants will be watching upcoming data releases and central bank signals to assess whether January’s decline is the beginning of a more pronounced downtrend in UK mortgage costs or simply a minor adjustment within a higher-for-longer rate landscape.