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The average 5 year mortgage rate has climbed to 6%, its highest level since September 2023, while the average 2 year fixed rate has reached 5.98%, Moneyfacts data shows.
This means someone taking out a mortgage now could face much steeper costs than if they had taken one out earlier this year, before rates started rising sharply following the outbreak of the Middle East conflict.
Our calculations show that someone taking out a £250,000 mortgage over 25 years at today’s average 5 year fixed rate could pay almost £2,000 more a year than at the average rate available at the start of February.
HomeOwners Alliance’s mortgage expert Sarah Tucker says:
“Seeing the average 5 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.”
“If you lock in a rate, you will be protected in case mortgage rates increase further. And by keeping it under review, you may be able to move to a better deal if rates come back down before you need to switch.
“In an uncertain market, having something secured while keeping an eye on what happens next can give borrowers some much-needed reassurance.”
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| Mortgage rate | Monthly cost | Difference per month* |
|---|---|---|
| 6% | £1,611 | +£158 |
| 4.94%** | £1,453 |
| Mortgage rate | Monthly cost | Difference per month* |
|---|---|---|
| 5.98% | £1,608 | +£168 |
| 4.85%** | £1,440 |
HomeOwners Alliance research earlier this year found widespread uncertainty about what would happen next to mortgage rates.
Around a quarter of Brits expected rates to rise (23%), while a similar proportion thought they would fall (25%). Another 28% expected them to stay the same and 24% were unsure.
HomeOwners Alliance CEO Paula Higgins says:
“Our research found that around a quarter of Brits expected rates to rise, a similar proportion thought they would fall, while more than half either thought they would stay the same or simply weren’t sure.
“Unfortunately, it seems the naysayers had it right as average 5 year mortgage rates hit 6%.”
Fixed mortgage rates have been rising because lenders are facing higher costs when pricing their mortgage deals.
The conflict in the Middle East has added to uncertainty in financial markets, with higher energy prices increasing concerns about inflation and whether the Bank of England may need to raise interest rates.
While no one can say for certain what will happen next, further mortgage rate increases are possible, however the outlook remains volatile. Read more in our guide Mortgage rate predictions.
* These examples assume a £250,000 capital repayment mortgage over 25 years and are based on the mortgage rate only. They do not include any product fees or other costs. The mortgage rate and repayments available to you will depend on your individual circumstances.
** Source of average rate figures from February 2026.
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