Moneyfacts said the typical five-year residential rate on Monday morning was 6% (Image: Getty)
The average five-year fixed homeowner mortgage rate on the market has hit 6% for the first time in three years, figures show. According to the financial information website, Moneyfacts, the typical five-year residential rate on Monday morning was 6%, up from 5.98% on Friday. This marks the highest average five-year rate since September 27, 2023, when it was 6.03%, Moneyfacts said. The average two-year fixed-rate homeowner mortgage on the market was sitting just below 6% on Monday morning, at 5.98%.
Fixed mortgage rates have been edging up in recent weeks amid rising swap rates, which lenders use to price mortgages.
Moneyfacts added that the choice of sub-5% rate fixed mortgage deals has plunged from 1,494 since the start of September 2026 to just nine on Monday morning.
This figure excludes deals that are exclusive to Northern Ireland lending only, it said. Moneyfacts’ data is used by major institutions across the UK financial sector, including the Bank of England and the Financial Conduct Authority (FCA).
The average five-year rate is at its highest since September 27, 2023 (Image: Getty)
Including products available to borrowers in Northern Ireland only, the website counted 107 fixed-rate mortgage deals priced below 5%, compared with 1,691 at the start of September 2026.
Rachel Springall, a 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.”
Ian Harris, president of NAEA (National Association of Estate Agents) Propertymark, said: “We are seeing first-hand how sensitive buyers are to mortgage rates, and the rapid disappearance of sub-5% deals will inevitably add further pressure to affordability.
“For some buyers, even a relatively small increase in monthly repayments can mean they have to reduce their budget or step back from a purchase altogether. Equally, homeowners coming off fixed-rate deals may face significantly higher repayments, which could affect their decision to move.
“This makes realistic pricing and good financial preparation more important than ever.”
He added: “Buyers and sellers need confidence that the figures work before committing, while greater stability in mortgage pricing would help restore confidence and keep people moving through the housing market.”
The cost of home loans has been rising in recent weeks. (Image: Getty)
Sarah Tucker, a mortgage expert at HomeOwners Alliance, also said: “Seeing the average five-year mortgage rate hit 6% is a real blow for borrowers, particularly those coming off much cheaper fixed deals who are already facing steep increases in other household bills. But while it’s important not to panic, it’s also important not to just sit and hope that rates will come back down either.”
She suggested: “If your current mortgage deal ends within the next six months, start looking at your options now.”
David Fell, lead analyst at Hamptons, added: “Current market rates represent a material adjustment for anyone coming off longer fixed terms, even if they have had some time to prepare.”
Jinesh Vohra, CEO of Sprive said homeowners coming off fixed deals should start reviewing their options early and look for ways to reduce their mortgage balance before higher rates push up their monthly payments.
He said: “The average five-year mortgage rate hitting 6% is a stark reminder of how quickly the cost of borrowing can change, and for homeowners coming off a fixed deal, the jump in monthly payments could be significant.
“With 1,500 sub-5% deals disappearing in just a few weeks, homeowners shouldn’t wait until their current deal expires to start looking at their options. Reviewing your mortgage early and reducing the balance where possible can help soften the impact of higher rates.
“For many households, finding extra money to overpay a mortgage isn’t realistic when budgets are already stretched. That’s why small, regular overpayments can make a difference. With Sprive, homeowners can earn cashback from their everyday spending and put it towards their mortgage, helping them chip away at the balance without having to find extra money from their monthly budget.
“You can’t control what happens to interest rates or global markets, but you can take steps to make your mortgage less vulnerable to them. The more you can reduce your balance now, the less interest you’ll pay when rates are higher.”
