Around 700,000 households whose fixed-rate mortgage deals expire by the end of 2026 could see their annual mortgage bills rise by as much as £5,000, as the average five-year fixed residential mortgage rate hits 6 per cent for the first time in three years.
Financial data website Moneyfacts revealed that the average five-year fixed homeowner mortgage rate stood at 6.00 per cent on Monday morning, up from 5.98 per cent the previous Friday. This is the highest level for the average five-year rate since September 27, 2023, when it reached 6.03 per cent.
The average two-year fixed-rate homeowner mortgage was sitting just below the 6 per cent threshold on Monday morning, at 5.98 per cent. Fixed mortgage rates have been gradually climbing in recent weeks, driven by increases in swap rates, which lenders use to determine mortgage pricing.
Sub-5% deals vanish
Moneyfactscompare.co.uk also reported that the number of sub-5 per cent fixed mortgage deals available has plummeted from 1,494 at the beginning of September 2026 to just nine on Monday morning. This figure excludes deals exclusive to Northern Ireland borrowers.
When Northern Ireland-only products are included, 107 fixed-rate mortgage deals were priced below 5 per cent, compared with 1,691 at the start of September 2026.
Expert warnings
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, commented: "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."
She added: "The impact on sub-5 per cent fixed mortgages has been brutal, with around 1,500 deals priced below 5% vanishing since the start of September while average five-year fixed rate has reached 6 per cent, with the average two year not far behind. Average fixed mortgage rates have not been above 6 per cent for around three years."
Buyer affordability under pressure
Ian Harris, president of NAEA (National Association of Estate Agents) Propertymark, commented: "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."
He added: "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."
Harris continued: "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."
Sarah Tucker, a mortgage expert at HomeOwners Alliance, added: "Seeing the average five-year mortgage rate hit 6 per cent 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."
