Five-year fixed rates have hit 6%: what should borrowers do now?

Mortgage rates have reached another uncomfortable milestone. On 5 October, Moneyfacts reported that the average five year fixed mortgage rate had reached 6.00% for the first time in roughly three years, while the average two year fix had climbed to 5.98%. The number of fixed mortgage products priced below 5% had also fallen sharply during September. Moneyfacts’ analysis is here: https://www.moneyfactsgroup.co.uk/media-centre/consumer/mortgage-rate-hikes-see-sub-5-fixes-vanish-as-average-five-year-fixed-hits-6/ 

The market is moving quickly, though. By the morning of 8 October, Moneyfacts’ live data showed the average five year fix had eased slightly to 5.98%, with the average two year rate at 5.96%. The cheapest deals were considerably lower, including five year fixes below 5% for some lower loan to value borrowers. Current rates can be checked here: https://moneyfactscompare.co.uk/mortgages/fixed-rate-mortgages/ 

That small change in just a few days illustrates the bigger point. Mortgage pricing remains unsettled, and borrowers should distinguish between market averages and the particular deals they may actually qualify for. 

Why did five year rates reach 6%? 

The latest rise has been driven largely by wholesale financial markets rather than a new Bank of England rate decision. A global bond sell off pushed UK borrowing costs sharply higher at the beginning of October, with the yield on 30 year government bonds moving above 6% for the first time since 1998. Reuters reported that UK mortgages, which are generally more sensitive to shorter term swap rates, were being affected as lenders faced higher funding costs. https://www.reuters.com/world/uk/uk-homeowners-take-hit-global-bond-selloff-deepens-2026-10-01/ 

Moneyfacts said several major lenders increased selected fixed rates repeatedly during September. Barclays made four rounds of increases, while HSBC, Lloyds Bank, Nationwide, NatWest, Santander and TSB each raised selected rates three times. 

That does not mean every mortgage has suddenly become a 6% mortgage. Average rates cover a very wide range of products, deposits and borrower circumstances. But it does show how broadly lender pricing has moved higher. 

What happened to the sub 5% deals? 

The change has been particularly dramatic at the cheaper end of the market. On 5 October, Moneyfacts counted just nine fixed mortgage deals below 5% when products exclusive to Northern Ireland were excluded, down from 1,494 at the beginning of September. 

There are still some sub 5% deals available. Moneyfacts’ live table on 8 October included a two year fix at 4.83% and a five year fix at 4.93% for borrowers at 60% loan to value. Those headline deals will not suit or be available to everyone, but they are an important reminder that a 6% market average does not mean every borrower will pay 6%. 

Deposit size or existing equity can make a substantial difference. Moneyfacts’ October data showed average rates becoming progressively higher as loan to value increased. 

What this means if you are buying or moving 

If you are buying, the most important factor is still when you find somewhere you actually want to purchase. Trying to wait for the perfect mortgage rate can be counterproductive if the right property is available now and the repayments are affordable. 

What has changed is the importance of being prepared. Make sure your agreement in principle is current, your documents are organised and you know what monthly payment you are comfortable with before making an offer. 

A market where lenders are repricing repeatedly also makes it useful to understand what products are realistically available to you, rather than basing your budget on the cheapest rate appearing in a comparison table. 

What this means if you are remortgaging 

For remortgagers, starting early becomes particularly important when rates are moving quickly. Someone with a fixed deal ending in the coming months may have more options if they begin reviewing the market well before the expiry date. 

The risk of simply waiting is that pricing moves against you while you are still considering your options. There is also the potential cost of reaching the end of a fixed deal without a replacement arranged and moving onto a lender’s standard variable rate. 

At the same time, securing a mortgage early does not always mean ignoring later improvements. The exact options depend on the lender and product, so borrowers should check whether a new deal can be reviewed before completion if the market improves. 

Mortgage availability is becoming tighter too 

Rate increases are not the only change. A Bank of England survey published on 8 October found that lenders reduced the availability of secured credit to households during the three months to the end of August, the first reported reduction in three years. Reuters also reported that mortgage demand fell sharply during the same period. https://www.reuters.com/world/uk/uk-lenders-scale-back-mortgage-supply-first-time-3-years-2026-10-08/ 

That reinforces the value of preparation. When both pricing and lending appetite are changing, knowing where you stand before you need to submit an application can reduce unnecessary delays. 

Practical takeaways 

The average five year rate reaching 6% is significant, but borrowers should not assume that 6% is automatically the rate they will pay. Deals below 5% still exist for some applicants, while the slight easing in average rates since 5 October demonstrates how quickly the market can change. 

For buyers, finding the right property and making sure the repayments are affordable matters more than trying to perfectly time rates. For movers and remortgagers, reviewing options early can provide more time to react if lenders reprice again. 

Altura Mortgage Finance can help you compare the products available for your circumstances, understand the true cost of different options and be ready to move when an appropriate deal appears. 

Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Think carefully before securing other debts against your home. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. Altura Mortgage Finance Limited is authorised and regulated by the Financial Conduct Authority. Firm Registration No: 827849 www.fsa.gov.uk/register/home.