Average five-year fixed mortgage rate hits 6% for first time in three years
News Source
β’Mon, 05 Oct 2026 11:39:37 GMT
π° What Happened
The average five-year fixed mortgage rate in the UK has hit 6% for the first time in three years. The average two-year fixed rate is almost as high, at 5.98%. Banks raised prices as global bond markets grew shaky.
There are now only nine fixed-rate deals below 5%, down from 1,494 last month. Experts said the change has been 'brutal' for borrowers.
π The Backstory
The Bank of England sets the base interest rate, which affects mortgage costs. It has not changed the base rate since December last year. But market jitters have pushed up the swap rates that banks use to price fixed mortgages.
Higher rates make home loans more expensive. For many families, this means paying hundreds more each month.
π― Why It Matters
Anyone with a mortgage, or hoping to buy a home, will pay more. Higher repayments squeeze household budgets.
The average five-year fixed mortgage rate in the UK has hit 6% for the first time in three years. The average two-year fixed rate is almost as high, at 5.98%. Banks raised prices as global bond markets grew shaky.
There are now only nine fixed-rate deals below 5%, down from 1,494 last month. Experts said the change has been 'brutal' for borrowers.
The Bank of England sets the base interest rate, which affects mortgage costs. It has not changed the base rate since December last year. But market jitters have pushed up the swap rates that banks use to price fixed mortgages.
Higher rates make home loans more expensive. For many families, this means paying hundreds more each month.
Anyone with a mortgage, or hoping to buy a home, will pay more. Higher repayments squeeze household budgets.