Five-year fixed mortgage rates jump to 6% in Britain

The average five-year fixed mortgage rate in Great Britain has reached 6% for the first time since September 2023, according to data from Moneyfacts. This marks a significant increase driven by volatility in global bond markets, which has made loans more expensive for lenders to offer. The average two-year fixed rate is also near a three-year high at 5.98%. Meanwhile, the number of fixed-rate mortgages priced below 5% has plummeted by 99%, dropping from 1,494 deals at the start of last month to just nine options.

Despite no change in the Bank of England's base rate since December 2025, turbulence in bond markets has pushed up swap rates, directly impacting mortgage pricing. Rachel Springall, a finance expert at Moneyfacts, described the situation as 'brutal' for borrowers, noting that rising rates will be disappointing for those hoping for stability. The monthly cost of a £250,000 loan fixed at 6% is now £158 higher than it was at the start of February when the average rate was 4.94%.

The surge in mortgage costs is already affecting the housing market, with Nationwide reporting that annual price growth halved in September. Ian Harris, president of NAEA Propertymark, observed that buyers are highly sensitive to mortgage rate changes, which can force them to reduce their budgets or abandon purchases. Homeowners coming off fixed-rate deals may also face much higher repayments, potentially impacting their ability to move.