What's happened
Moneyfacts data show fixed-rate mortgages edging up, with five-year deals at 6.00% and sub-5% products shrinking dramatically. Experts warn buyers face affordability pressures as swap rates and gilt yields climb; some borrowers should secure options now.
What's behind the headline?
Market Dynamics
- Sub-5% fixed-rate deals have collapsed from 1,494 to 9 (ex NI) since early September, with total below-5% options at 107 when NI is included.
- The average five-year rate has climbed to 6.00%, the highest since 2023, while the two-year rate sits near 6%.
- Swap-rate volatility and higher gilt yields are driving wholesale funding costs higher, leading lenders to reprice risk.
Implications for Borrowers
- Buyers may face higher monthly repayments, forcing tighter budgets or delay in purchases.
- Homeowners renewing fixed deals could see significantly higher costs, affecting mobility and pricing strategies.
What to Watch
- Any stabilization in swap rates could ease pricing pressure; otherwise, expect continued pressure on new and renewal deals.
How we got here
Moneyfacts data for September–early October 2026 show a sharp drop in sub-5% fixed-rate deals as swap rate volatility and higher gilt yields push up prices. The page notes that the last time five-year rates reached 6% was September 2023, with affordability pressures mounting for buyers and homeowners.
Our analysis
Moneyfactscompare.co.uk; National Association of Estate Agents Propertymark; HomeOwners Alliance quotes included in the original briefing.
Go deeper
- Are sub-5% fixed-rate deals likely to rebound in the near term?
- What should borrowers do if their fixed-rate expires within six months?