UK vs EU Mortgages 2026: Why UK Rates are Higher
Why UK Mortgages Are Still Pricier Than the Eurozone in 2026 Key Takeaways Average UK two-year fixed mortgage rate: 4.85% (Feb 2026) vs ~3% in Spain and France Bank of England base rate is 3.75% — nearly double the ECB 's 2.0% UK inflation hit 3.4% in December 2025, keeping the Bank of England cautious The UK's short-term fixed-rate culture adds structural cost that the Eurozone avoids Experts forecast UK rates may fall toward 3.5% by the end of 2026 — but parity with the Eurozone is not imminent Introduction: Why Is Your Mortgage Still So Expensive? Picture this. Your cousin in Madrid just locked in a home loan at 2.98%. Your friend in Lyon got 3.11% on a 20-year fixed deal. Meanwhile, you're sitting in Manchester staring at a two-year fixed rate of 4.85% and wondering what is going on. The piece lays it all out in straightforward, everyday terms. We'll explain the real reasons UK mortgages remain pricier than Eurozone ones, walk you through what the data ...
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