Average five year fixed mortgage rate reaches six percent in the United Kingdom

The average cost of a five-year fixed mortgage rate reached six percent on October 5, 2026, marking its highest point in three years. According to Guardian Business and BBC Business, financial information provider Moneyfacts provided the figures showing the average rate hitting six percent, which is the highest level recorded since September 2023. [1][3]

Banks and building societies have been raising loan prices as volatility in the bond markets increases expectations of a central bank base rate rise. BBC Business reported that about 1,500 mortgage deals priced below five percent have disappeared from the market since the start of September 2026. [1][3]

Higher borrowing costs for lenders are being driven by international concerns surrounding rising prices, interest rates, and government borrowing expenses. Guardian Business noted that the average two-year fixed rate is also rising and close behind the five-year figure. [1][3]

A fixed-rate mortgage maintains the same interest rate throughout the agreed term of the loan. This arrangement ensures that payment amounts remain fixed, allowing homeowners to plan personal budgets based on a consistent cost. [8]