UK mortgage rates hit 6% as sub-5% deals vanish

Average fixed-rate mortgage rates in the UK have reached their highest levels in three years. According to data from Moneyfactscompare.co.uk, the typical five-year fixed residential rate has hit 6.00%, while the average two-year fixed rate has risen to 5.98%.

The availability of mortgage deals priced below 5% has seen a significant decline. Since the start of September 2026, the number of sub-5% fixed mortgage deals has dropped from 1,494 to just nine, excluding products exclusive to Northern Ireland. When including Northern Ireland, the number of sub-5% deals fell from 1,691 to 107.

Financial experts attribute these increases to rising wholesale funding costs driven by climbing gilt yields and swap rate volatility. Major lenders, including Barclays, HSBC, Lloyds Bank, Nationwide, NatWest, Santander, and TSB, have implemented multiple rounds of rate increases in recent weeks.