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Average UK five-year mortgage rate reaches 6% for first time since 2023

Moneyfacts’ reported average for new UK five-year fixed mortgages reached 6% on 5 October 2026. Here’s what the milestone means for borrowers approaching a remortgage.
From TheFinanceBase Team3 min to read
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The average rate on a new UK five-year fixed mortgage reached 6% on 5 October 2026, the highest since September 2023, according to Moneyfacts figures reported by BBC News. The reported average for new two-year fixes was 5.98%. These are market averages, not personal offers: the rate available to you depends on your circumstances and the deal you qualify for.

What does the 6% average mean?

Moneyfacts’ reported average covers new five-year fixed mortgage deals available in the UK on 5 October 2026. It does not mean every borrower will be offered 6%, nor that 6% is the rate on existing fixed mortgages. Individual offers can differ, and the report does not provide borrower-specific eligibility or a complete comparison of fees.

Fixed mortgage interest generally stays the same until the deal expires, commonly after two or five years. At that point, borrowers choose a replacement deal or move onto the lender’s applicable follow-on rate. The BBC report says the vast majority of homeowners and buyers use this kind of mortgage.

Why have five-year mortgage rates hit 6%?

The BBC report attributes recent repricing to higher lender wholesale funding costs, rising gilt yields and wider international economic uncertainty, including concerns about inflation, interest rates and government borrowing costs. Gilt yields influence the cost of longer-term government borrowing; the report says higher yields have fed through to mortgage pricing, rather than being the sole cause.

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Rachel Springall, finance expert at Moneyfacts, told the BBC: “Borrowers who were hoping mortgage rates would stabilise will be disappointed.” This describes the pressure reported at that time; it is not a prediction that rates will continue rising.

What has changed in the choice of fixed deals?

Moneyfacts figures reported by the BBC indicate that about 1,500 fixed-rate mortgage deals priced below 5% had disappeared from the market since the start of September 2026. The BBC’s account says this count excludes mortgages exclusive to Northern Ireland. It is a count of deals, not borrowers, and does not establish how many products remain available to any particular applicant.

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How much could my mortgage payments change?

The change depends on your outstanding balance, the time left on the mortgage, the rate and fees on the replacement deal, and when your current fixed rate ends. A borrower moving from a lower rate to a higher one may face a larger monthly payment, but the market averages alone cannot calculate an individual increase. The BBC report directs readers to use a mortgage calculator with their balance and remaining term.

When should I look for a new mortgage deal?

If your fixed deal is nearing expiry, start comparing options and seek advice rather than waiting until it ends. According to the BBC report, some lenders may let customers reserve a new rate three months ahead, while others may allow six months. Check the window and conditions with your lender; they vary.

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Springall told the BBC that borrowers nearing the end of a fixed deal would be “wise to seek advice and compare deals carefully.”

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Should you choose a fixed or variable mortgage?

A fixed rate provides payment certainty on the interest rate until the deal expires. A variable or tracker rate can change with its reference rate, so payments may rise or fall. The right comparison depends on the full cost, your tolerance for payment changes, and the flexibility and charges attached to each option. The reported averages do not establish which type will be cheaper for an individual borrower.

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