According to Moneyfacts, the number of sub-5% mortgages plummeted by 99% in September, falling from 1,494 at the start of last month to just nine today. This figure excludes mortgages exclusive to borrowers in Northern Ireland.
However, the number of sub-5% variable rate mortgages has stayed stable, with a small decline from 411 at the start of September to 389 today. Again, this does not include mortgages exclusive to Northern Ireland.
Including products available to the Northern Ireland market only, there are 107 fixed rate mortgages priced below 5%, down from 1,691 at the start of September. This means more than 1,000 sub-5% deals have disappeared from the market.
Including lending to Northern Ireland, the number of sub-5% variable rate mortgages has declined from 421 to 395. Collectively, this represents a loss of 1,610 across the market.
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Average five-year fixed rate hits 6%
Moneyfacts data showed that average fixed rates had reached their highest level in three years.
The average two-year fixed rate is now 5.98%, its highest since mid-December 2023, while the average five-year fixed rate is now 6%, the highest since late September 2023.
This follows a month of rate increases by major lenders, including Barclays, which increased fixed rates four times in September, and HSBC, Lloyds Bank, Nationwide, NatWest, Santander and TSB, which priced upwards three times.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “The past few weeks have seen pricing margins among major lenders come under immediate pressure from renewed swap rate volatility. As wholesale funding costs climb on the back of rising gilt yields, fixed rate adjustments are somewhat inevitable.”
Springall said the impact on sub-5% fixed rate mortgages had been “brutal”, with 1,500 vanishing since the start of September.
Springall added: “This shows just how quickly the mortgage market has shifted for borrowers searching for the lowest rates. It may then be no surprise if borrowers are seriously considering a variable rate deal, such as a base rate tracker mortgage, particularly if it does not apply an early redemption penalty.”
She said fixed rate rising back to three-year highs would be “disastrous news” for borrowers, who would be disappointed if they were waiting for rates to stabilise, adding: “There have been some reductions along the way, but these have done little to offset the broader upward pressure on mortgage pricing.”
A £2k mortgage hit
HomeOwners Alliance said the rising rates could see some borrowers facing mortgage payment increases of nearly £2,000 per year.
Sarah Tucker, mortgage expert at HomeOwners Alliance, said: “Seeing the average five-year mortgage rate hit 6% is a real blow for borrowers, particularly those coming off much cheaper fixed deals who are already facing steep increases in other household bills.
“But while it’s important not to panic, it’s also important not to just sit and hope that rates will come back down either. If your current mortgage deal ends within the next six months, start looking at your options now.
“In an uncertain market, having something secured while keeping an eye on what happens next can give borrowers some much-needed reassurance.”
A £250,000 mortgage over 25 years on a five-year fix priced at 6% rising from 4.94% at the start of February 2026 to 6% today could see costs rise by £1,896 per year.
| Mortgage rate | Monthly cost | Difference per month |
| 6% | £1,611 | +£158 |
| 4.94% | £1,453 |
HomeOwners Alliance said borrowers looking for a shorter-term fix would also be stung by higher mortgage rates, as pricing for a two-year fix was not far behind a five-year, at 5.98%.
The same mortgage rising from 4.85% in February to 5.98% today would add £2,016 per year to a borrower’s costs.
| Mortgage rate | Monthly cost | Difference per month |
| 5.98% | £1,608 | +£168 |
| 4.85% | £1,440 |
Paula Higgins, CEO of HomeOwners Alliance, said: “Our research found that 23% of Brits expected rates to rise, a quarter thought they would fall, 28% expected them to stay the same, and 24% were unsure. Today, it seems the naysayers had it right, as rates hit 6%.”
