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Five-year fixed mortgage rate rises to 6% for first time in three years

Rates climbed alongside higher lender costs, and about 1,500 fixed mortgage deals priced below 5% have disappeared since early September, Moneyfacts data show.

Reported · Written up by our desk · Mortgages

The average interest rate on a new five-year fixed mortgage has reached 6% for the first time in three years, according to figures cited by BBC Business. The increase comes after rising costs for lenders in recent weeks.

BBC Business reports that Moneyfacts data show roughly 1,500 mortgage deals priced below 5% have been removed since the start of September. The outlet also cited 5.98% as the average rate on two-year fixed mortgages.

The report notes that fixed mortgage rates do not change until the term ends, typically after two or five years, when borrowers must select a new deal to replace the expiring one. It adds that global economic uncertainty since the start of the Iran war has been pushing up the cost of mortgage borrowing.

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