The number that changed on Monday
The average rate on a new five-year fixed residential mortgage reached 6.00% on Monday 5 October, its highest level since September 2023. The average two-year fix stood at 5.98%. These are market averages rather than the rate every borrower will be offered: actual pricing depends on deposit size, loan-to-value, credit profile, property type and lender criteria.
Sub-5% fixed deals have almost vanished
Moneyfacts data cited by the BBC shows how quickly the market changed during September. The number of fixed-rate mortgages priced below 5% fell from 1,494 at the start of September to just nine by 5 October — a 99% collapse in that part of the market. Major high-street lenders repriced repeatedly as wholesale funding costs and gilt yields moved higher.
| Market measure | 5 October 2026 |
|---|---|
| Average five-year fixed mortgage | 6.00% |
| Average two-year fixed mortgage | 5.98% |
| Sub-5% fixed deals | 9 |
| Sub-5% fixed deals at start of September | 1,494 |
| Official Bank Rate | 3.75% |
Why mortgage rates can rise even when Bank Rate has not moved
The Bank of England's official Bank Rate remains 3.75%, unchanged since December 2025. Fixed mortgage pricing is not determined by Bank Rate alone. Lenders also look at swap rates, gilt yields, the cost of wholesale funding, expected future inflation and competition for borrowers. That is why a fixed mortgage can become more expensive while the central bank's policy rate is unchanged.
What this means for someone remortgaging soon
A borrower whose existing fix ends in the next three to six months should check how early their lender or broker allows a new rate to be reserved. Some products can be secured months before the current deal expires. Reserving early can reduce the risk of further increases, while borrowers should also ask whether they can switch to a cheaper product before completion if rates later fall. Terms differ by lender, so the detail matters.
Do not compare headline rates without fees
A lower interest rate can come with a large arrangement fee, and that fee may outweigh the saving for a smaller mortgage or short fixed period. Compare the total cost over the initial deal period, not only the advertised percentage. Also check valuation fees, legal incentives, early-repayment charges and whether a fee is added to the loan, where it would itself accrue interest.
Buyers need to stress-test the payment, not just pass affordability
For buyers, a 6% market average changes the monthly-payment calculation and can reduce the amount that feels comfortable to borrow. A lender's affordability assessment is only one threshold. Households should also test whether the payment would remain manageable alongside council tax, insurance, energy, maintenance and other debt — and whether they have a cash buffer for unexpected costs.
Fixed versus tracker: the trade-off has changed
Variable and tracker products may look more attractive when fixed rates rise sharply, but they transfer more interest-rate risk to the borrower. If Bank Rate rises, monthly payments on many variable products rise too. A fixed rate buys payment certainty; a tracker offers greater exposure to future rate falls but also to future increases. The right choice depends on time horizon, financial buffer and tolerance for payment volatility.
Bottom line
The 6% five-year average is a warning about market conditions, not a quote for every borrower. The practical response is to compare the total cost of several deal types early, understand lock-in and switching rules, and avoid assuming that the official Bank Rate alone predicts the mortgage rate available today.