Overview
- The typical five-year fixed mortgage rate has risen to about 6%, with two-year fixes around 5.98%, marking the highest levels since September 2023 and reported on Monday.
- Moneyfacts data show roughly 99% of five-year deals priced below 5% have been withdrawn since early September, leaving just nine such products on the market.
- Lenders have raised fixed-rate offerings several times in recent weeks, with major banks including Barclays, HSBC, Lloyds, Nationwide, NatWest, Santander and TSB among those repricing products.
- Mortgage pricing is following wholesale funding costs: higher gilt yields and rising swap rates lift lenders' costs, which they pass on to fixed-rate borrowers; variable tracker deals under 5% remain for some but expose borrowers to future base-rate moves.
- Hundreds of thousands who secured ultra-low five-year deals in 2021–22 face large payment rises when they remortgage and an estimated half a million homeowners will need new deals in the final three months of 2026, prompting brokers to urge those due to remortgage soon to seek advice or consider fixing now.