Business & Finance
Average UK five-year fixed mortgage rates reach six percent
Mortgage options priced below five percent have dropped sharply as financial market volatility lifts borrowing costs
The short version
- The average rate for a five-year fixed mortgage has reached 6%, its highest point in three years, while two-year deals averaged 5.98%.[BBC News · The Guardian]
- Available fixed-rate products priced under 5% collapsed by roughly 99%, dropping from 1,494 to nine.[BBC News · The Guardian]
- Lenders lifted pricing after global bond market turmoil increased swap rates, even though the Bank of England base rate has held steady since December.[The Guardian]
- Borrowers ending fixed contracts face higher repayments, and industry figures warn increased affordability pressure is dampening property purchases.[The Guardian]
Key facts
- The average interest rate on a five-year fixed mortgage deal reached 6%, hitting a three-year peak.[BBC News · The Guardian]
- The average rate for a two-year fixed mortgage reached 5.98%, the highest since December 2023.[BBC News · The Guardian]
- Fixed-rate mortgage offerings below 5% fell from 1,494 to nine options.[BBC News · The Guardian]
- The Bank of England base rate has remained unchanged since December of last year.[The Guardian]
- Nationwide building society reported that annual UK home price growth halved in September.[The Guardian]
What remains uncertain
- Whether bond market turbulence will prompt the Bank of England to raise the base rate remains uncertain.[The Guardian]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.
- Average five-year fixed mortgage rate hits 6% for first time in three yearsThe Guardian - World
- Average five-year mortgage rate hits 6% for first time in three yearsBBC News - Top Stories