The Aporia
The Aporia
Shaw, V. (2026, October 5). Mortgage misery as average five-year deal hits 6% for first time in three years. Evening Standard. https://www.standard.co.uk/homesandproperty/buying-mortgages/average-five-year-mortgage-deal-6-per-cent-b1299553.html
Shaw, Vicky. “Mortgage misery as average five-year deal hits 6% for first time in three years.” Evening Standard, 5 Oct. 2026, https://www.standard.co.uk/homesandproperty/buying-mortgages/average-five-year-mortgage-deal-6-per-cent-b1299553.html.
Shaw, Vicky. “Mortgage misery as average five-year deal hits 6% for first time in three years.” Evening Standard, October 5, 2026. https://www.standard.co.uk/homesandproperty/buying-mortgages/average-five-year-mortgage-deal-6-per-cent-b1299553.html.
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In late September 2023, Moneyfacts reported that the average interest rate on new five-year fixed mortgages in the UK reached 6%, the highest since mid-September of the same year. This marks a significant increase from just two months prior when there were over 1,494 deals available below 5%. As of early October, only nine such deals remained, representing a decline of nearly 99%.
The rising mortgage rates are attributed to increased costs for lenders due to global economic uncertainties and volatility in swap rates, which affect pricing. Major banks like Barclays, HSBC, and Lloyds Bank have been raising fixed-rate mortgages repeatedly since September. This trend is particularly challenging for homeowners coming off cheaper deals amid other rising household expenses.
Mortgage experts warn that the rapid disappearance of sub-5% deals will exacerbate affordability issues, making it harder for potential buyers to secure loans at lower rates. Sarah Tucker from the HomeOwners Alliance and Ian Harris, president of NAEA Propertymark, both expressed concern about the increased pressure on borrowers' financial stability due to higher interest costs.
