Average five-year fixed mortgage rate hits 6% as sub-5% deals vanish in "extraordinary" month

THE average five-year fixed mortgage rate has hit 6%, its highest level in around three years, as experts told Newspage that it's been an "extraordinary" month of rises.

Excluding products available only in Northern Ireland, the number of sub-5% fixed mortgage deals has plunged by 99%, from 1,494 at the start of September 2026 to just nine today, Moneyfactscompare.co.uk data has found.

Including Northern Ireland-only products, sub-5% fixed deals fell from 1,691 to 107, while variable-rate deals dropped from 421 to 395. This represents a combined loss of 1,610 mortgage options.

The average rate on a two-year fixed mortgage has climbed to 5.98%, its highest level since December 2023.

Barclays raised selected fixed rates four times during September, while HSBC, Lloyds, Nationwide, NatWest, Santander and TSB each pushed up rates on three occasions.

The squeeze is being blamed on rising funding costs and growing global economic uncertainty, with concerns over inflation, interest rates and government borrowing pushing up the cost of finance.

Brutal

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said: “The past few weeks have seen pricing margins among major lenders come under immediate pressure from renewed swap rate volatility. As wholesale funding costs climb on the back of rising gilt yields, fixed rate adjustments are somewhat inevitable. 

"The impact on sub-5% fixed mortgages has been brutal, with around 1,500 deals priced below 5% vanishing since the start of September while the average five-year fixed rate has reached 6%, with the average two-year not far behind. Average fixed mortgage rates have not been above 6% for around three years.

“The availability of sub-5% fixed mortgages has almost been wiped out since the start of September, with just nine deals left today compared with almost 1,500 at the start of the month, excluding deals available only for lending in Northern Ireland. This means 99% of these deals have vanished. Including deals that are exclusive for Northern Ireland lending, the number has fallen from 1,691 to just 107, a fall of 94%."

One adviser told Newspage the sudden disappearance of sub-5% deals is “extraordinary”. 

Nouran Moustafa, Practice Principal & IFA at Roxton Wealth, said: "6% mortgages are no longer a scary hypothetical. They are becoming normal again. Going from almost 1,500 sub-5% fixed deals to nine in barely a month is extraordinary. It shows how violently mortgage pricing can move even when Bank Rate itself has not changed. My advice is simple: do not gamble your mortgage on rates magically falling next month. 

"If you are buying or within six months of remortgaging, secure an option now and keep reviewing it. If pricing improves before completion, you can reconsider. There are still cheaper deals for some borrowers, particularly at lower loan-to-values, so 6% is not universal. But the direction of travel is uncomfortable. For the coming weeks, I expect volatility and more repricing unless swap rates and bond yields calm materially. Waiting is a strategy only if you can afford to be wrong."

Mortgage experts said that not every borrower will face the same rate as deposits, loan-to-value ratios, fees and personal circumstances can still make a significant difference.

Stephen Perkins, Norwich Mortgage Broker and Managing Director at Norwich-based Yellow Brick Mortgages, said: "6% may now be the average fixed mortgage rate, but that doesn't mean every borrower should expect to pay 6% or more. Pricing still varies significantly depending on deposit, loan-to-value, fees and individual circumstances. 

“What has changed very quickly is the amount of choice below 5%, and that matters because borrowers have fewer ways to avoid the recent repricing. Anyone with a fixed deal ending in the next six months should review their options now and secure a fallback if suitable, rather than gamble on rates falling before their current deal ends. The next few weeks could remain volatile while funding costs stay elevated.”

The era of cheaper borrowing looks increasingly over, according to one mortgage expert. 

Craig Fish, Director at London-based Lodestone Mortgages, said: "Don't take the 6% average as the price you'll pay. Averages lump together everyone from borrowers with spotless records to those with patchy credit and complex cases, and plenty of my clients are securing rates well below it. What has changed is the direction of travel. Higher rates are becoming the new normal, and the days of cheap money are long gone.

“At the start of September there were 1,691 fixed deals under 5%. Today there are 107. Lenders have pulled them as swap rates climbed, with inflation at 3.1% in August and markets betting on rate rises. Trackers have held up better, and one with no early repayment charges leaves room to fix later.

"If your deal ends in the next six months, secure an offer now, as you can usually switch if rates fall before completion. Get a broker searching the whole market, because the best deals are being pulled with little warning.”

Homeowners are being urged to check their options now before even more cheap fixes disappear.

Reassess

Harry Goodliffe, Director at Winchester-based HTG Mortgages, commented: "6% is the price of a rate rise that hasn't happened yet. The Bank of England held at 3.75%, yet lenders have pulled all but 9 of their sub-5% fixes since September because the market is betting on rises and charging for them early. 

“The only ‘cheap’ money left is variable, which tells you lenders expect the base rate to go up, not that it has. Anyone with a deal ending in the next six months should get their options checked now. I expect the Bank to raise rates before Christmas and 6% fixes to hold into the new year.”

Brokers are urging borrowers to reassess the available mortgage amount, monthly cost and any funding gap early.

Tracey Dixon, Buy-to-Let Mortgage Specialist & Owner at Cardiff-based Pure Mortgage and Protection, said: "A mortgage has to fit a household budget, not a prediction about the next Bank of England meeting. A 6% average does not mean every borrower will pay that rate, but the loss of cheaper fixes narrows the options. The concern is how much room households have left after their mortgage payment. 

"Borrowers approaching the end of a deal should review options three to six months ahead, compare the total cost including fees, and work out what the new payment means for everyday spending and emergency savings. 

"A suitable rate secured early can be reviewed before completion where lender rules allow. A lower starting rate on a variable deal is only helpful if the borrower can afford payments to rise. I expect further volatility in the coming weeks and would be cautious about predicting a rapid reversal over the coming months. Borrowers need a plan that remains affordable if rates stay higher for longer."

ENDS