Average five-year mortgage rate hits 6% for first time in three years
Average five-year fixed mortgage rates in the UK have reached 6% for the first time in three years. This increase is driven by global economic uncertainty and rising government borrowing costs, impacting thousands of homeowners.
Why it matters
Rising mortgage rates significantly increase the cost of living for homeowners and cooling the housing market.
Image source, Getty Images By Kevin Peachey Cost of living correspondent Published 5 October 2026, 10:02 BST Updated 10:54 BST The average interest rate on a new five-year fixed mortgage deal has hit 6% for the first time in three years, figures show.
The cost of home loans has been rising in recent weeks, as lenders face higher costs amid international concern over rising prices, interest rates, and government borrowing costs.
It means home buyers and anyone renewing a fixed deal have seen about 1,500 mortgage deals priced below 5% vanish since the start of September, according to the financial information service Moneyfacts.
It described the situation as "brutal" for borrowers, with the average rate on five-year deals now at 6%, and at 5.98% on two-year fixed mortgages.
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