UK Five-Year Mortgages Hit 6% as Sub-5% Deals Disappear
The average five-year fixed rate hit 6 per cent on Monday. Moneyfacts counted nine fixed deals below 5 per cent, down from 1,494 at the start of September.
The average rate on a new UK five-year fixed mortgage reached 6 per cent on 5 October, its first time at that level since September 2023. Two-year fixes averaged 5.98 per cent, their highest since December 2023. Moneyfacts counted nine fixed-rate products below 5 per cent on Monday, down from 1,494 at the start of September. The count excludes deals available only in Northern Ireland. BBC News independently confirmed the average rates and reported that around 1,500 cheaper deals had disappeared.
Moneyfacts attributed lenders’ repricing to renewed volatility in swap rates and higher wholesale funding costs. City A.M. reported that energy-driven inflation concerns and rising UK gilt yields were adding pressure. Fixed mortgage offers can move with those market expectations before the Bank of England changes its policy rate.
Britain’s task is to address the sources of expensive money.
From the analysisThe headline average is not an individual borrower’s quote. Rates still vary with deposits, fees and lender, but the menu below 5 per cent has nearly vanished in a month. Homeowners approaching the end of a fixed deal have fewer low-rate offers to compare. Moneyfacts says borrowers can begin arranging a new deal months before their current fix ends.
Britain’s task is to address the sources of expensive money. More predictable public finances and ample energy can reduce inflation risk; easier homebuilding can add to the stock of places to live. Those are durable ways to improve affordability without pretending credit prices can be set by command.
Sources
A human editor is accountable for this analysis. Read our editorial standards, how we use AI, what the content labels mean, and how to ask for a correction.
