Average five-year fixed mortgage rate reaches 6% for first time in three years

The average five-year fixed mortgage rate has climbed to 6.00%, the first time it has reached that level in three years, as lenders pass on higher borrowing costs to borrowers.

Figures published by the Guardian, citing financial information provider Moneyfacts, show the average five-year fixed rate at 6.00% — the highest point since September 2023. The Guardian also reports that the average two-year fixed rate is 5.98%, its highest level since December 2023. The BBC similarly reported that the average five-year mortgage rate has hit 6% for the first time in three years.

Why rates are rising

Both outlets attribute the recent increase in fixed mortgage costs to higher costs for lenders. The Guardian says turmoil in bond markets has raised expectations of a rise in the Bank of England base rate, making it more expensive for banks and building societies to offer fixed-rate deals. The BBC likewise describes the cost of new fixed-rate mortgages as rising in recent weeks as lenders face higher costs.

What this means for borrowers and the market

Higher fixed rates make new mortgage deals more expensive for prospective homebuyers and for homeowners looking to remortgage. It may also reduce the number of competitively priced fixed-rate offers available, as lenders reprice products to reflect their funding costs and the outlook for official interest rates.

The move follows a period of volatility in financial markets and sustained attention on the path of official interest rates. Although the outlets differ in the level of detail they provide, both report the same upward move in average fixed borrowing costs.

Market context and limitations of available data

The Moneyfacts averages cited by the Guardian provide a snapshot of typical quoted deals but do not translate directly into the rates every borrower will be offered, which depend on personal circumstances such as loan-to-value ratios and credit history. The sources do not provide data on how many specific products have been withdrawn or relisted at higher prices, nor do they report on lender-specific changes beyond the sector-wide averages.

Policymakers and mortgage lenders will be watching how sustained increases in quoted fixed rates affect housing activity and household finances. The reporting makes clear that lenders' funding pressures and bond market moves are key drivers of the recent price rises, but the outlets do not present forecasts for future mortgage-rate movements or confirm any imminent change in the Bank of England base rate.

For borrowers, the immediate implication is that fixed-rate deals available now are, on average, more expensive than a few months ago, and those seeking to lock in a rate may face higher monthly costs than when five-year fixes were below 6% earlier in 2024 and 2025.