UK mortgage rates have reached 6%. On 5 October 2026, the average five-year fixed rate hit 6.00%, according to Moneyfacts. It is the highest level since September 2023. The average two-year fix is 5.98%. If your deal ends in the next six months, you should start looking now.
That is the short answer. The rest of this guide explains what happened, what it costs and what you can do about it.
Key takeaways
- The average five-year fixed mortgage rate hit 6.00% on 5 October 2026. The average two-year fix reached 5.98%.
- Deals priced below 5% have almost vanished. Moneyfacts counted 1,494 at the start of September. By 5 October there were nine (excluding Northern Ireland).
- Nationwide says annual house price growth halved to 0.8% in September.
- The Bank of England meets on 5 November. Markets expect a rise.
- The Autumn Budget lands on 28 October.
- Remortgaging early is the single most useful move for most homeowners.
How fast did mortgage rates rise?
Very fast. Rates were below 5% at the start of the year. In January, Moneyfacts put the average two-year fix at 4.83% and the five-year at 4.91%.
Then September happened. Lenders pulled cheap deals and repriced the rest. Here is what Moneyfacts reported for the best deals on the market:
| Loan to value | Best 2-year fix (Sept → Oct) | Best 5-year fix (Sept → Oct) |
|---|---|---|
| 60% | 4.47% → 5.01% | 4.48% → 4.98% |
| 80% | 4.66% → 5.20% | 4.65% → 5.15% |
| 90% | 4.73% → 5.31% | 4.65% → 5.23% |
Even the best deals moved up by about half a percentage point in a month. That is a big jump in a short time.
Why are mortgage rates going up?
Lenders price fixed-rate mortgages off swap rates. Swap rates reflect what markets expect interest rates to do. When those expectations rise, mortgage rates follow.
Three things pushed expectations higher.
1. Inflation worries. Nationwide’s chief economist, Robert Gardner, has pointed to the conflict in the Middle East. It has pushed up energy prices and stoked inflation fears.
2. A split Bank of England. The Bank held rates at 3.75% on 17 September. But the vote was 6–3. Three members wanted a rise to 4%. That told markets a hike was close.
3. Market pricing. Markets now price Bank Rate at around 4% by November. They see roughly 4.25% in early 2027. Savills, citing Oxford Economics, also expects 4.25% by early 2027.
So lenders are not waiting. They are pricing in rises that have not happened yet.
What does 6% mean for your monthly payment?
Numbers help here. The figures below assume a repayment mortgage over 25 years. They are illustrations, not quotes.
| Mortgage size | At 2% | At 4.5% | At 6% |
|---|---|---|---|
| £150,000 | £636 | £834 | £966 |
| £200,000 | £848 | £1,112 | £1,289 |
| £250,000 | £1,060 | £1,390 | £1,611 |
| £300,000 | £1,272 | £1,667 | £1,933 |
Take a £200,000 mortgage. Someone coming off a 2% deal would pay about £441 more each month at 6%. On £250,000, the gap is about £551.
Even compared with 4.5%, the jump is real. On £200,000, it is about £177 more per month.
That is why the Savills figure matters. It says five million households agreed low mortgage rates in 2022 and will come off them by the end of 2027. Some will face much higher costs. Savills says they may need support from their lender.
What is happening to house prices?
Prices are soft, not crashing. But the direction has changed.
- Nationwide: Prices fell 0.2% in September. Annual growth halved to 0.8%, from 1.6% in August. It is the weakest rate since December 2025.
- Lloyds: Prices were unchanged year on year in September, after a 0.4% fall in August. August was the first annual fall since November 2023.
- RICS: The house price balance dropped to -32% in September, from -28% in August. RICS blamed a fresh rise in interest rate expectations.
There is a regional split too. Savills says growth has been stronger in more affordable northern markets. London and the South are weaker, as they are more sensitive to mortgage rates. Local data to June showed South Ayrshire at 11.6% annual growth. Kensington and Chelsea was down 9.2%.
For a wider look at long-term gains, see our guide on UK home values rising 15.3% since 2021.
Fewer sales, more homes for sale
Higher rates are hitting activity. Savills reports that mortgage approvals were 15% below the 2017–19 average in August. It was the fourth month in a row at that level. Completed transactions fell to 16% below the same benchmark.
At the same time, supply is rising. New instructions were 11% above the 2017–19 average in September, according to TwentyCI.
More sellers and fewer buyers is a simple recipe. It leaves little push for prices. Savills says higher rates are here to stay and the market is likely to stay tough.
If you are thinking of selling, our guide on whether now is a good time to sell your house covers pricing and timing in detail.
Two dates to watch
28 October: the Autumn Budget. Chancellor John Healey delivers it. Some property tax changes are already set. Higher property income tax rates of 22%, 42% and 47% apply from April 2027. The High Value Council Tax Surcharge starts in April 2028. Beyond that, nothing is confirmed. Reports say Capital Gains Tax could be targeted, but that is speculation. Stamp duty reform has been ruled out for this Budget. Our explainer on stamp duty in England shows how the current bands work.
5 November: the Bank of England decision. This is the big one for mortgage pricing. A rise is widely expected. A hold could calm swap rates. A rise with hawkish language could push them higher.
Nobody knows what will happen. Plan for both.
What should you do now?
It depends on your situation.
If your fixed deal ends within six months
Act now. Most lenders let you lock in a new rate up to six months ahead. Many let you switch if a better deal appears before your current one ends.
- Check your end date and early repayment charges.
- Find out your current loan to value. A lower LTV often unlocks better rates. Your home may be worth more than when you last fixed.
- Speak to a broker. They see the whole market, including deals only sold through intermediaries.
- Never drift onto your lender’s standard variable rate unless you have to. SVRs are usually much higher than fixed deals.
If you are buying a home
- Get a decision in principle early, and compare it against a few lenders.
- Ask a broker about a product transfer or rate hold. Many lenders will hold a rate for several months.
- Run your budget at 6.5%. If you can afford that, you are safer if rates rise further.
- Remember that affordability is not all bad. Nationwide notes that house price growth remains below earnings growth. That helps, even though higher mortgage rates have taken some of the gain back.
Our guide asking whether buying a house is a good investment will help you think through the long game.
If you are a first-time buyer
Look for lenders with higher-LTV deals and ask about longer terms. A longer term lowers the monthly payment, though you pay more interest overall. Use a mortgage calculator to compare.
If you are a landlord
Higher rates and the property income tax increase from April 2027 both squeeze margins. Recheck your rental yield on a 6% mortgage. Our UK rental market update for September 2026 shows how rents and supply are moving.
If you are thinking of renovating
Some homeowners put off moving and improve instead. That is a fair choice when moving costs are high. Before you spend, read how to decide whether a home renovation is worth the investment. But do not stretch your finances if you also face a big mortgage jump.
Should you fix for two years or five?
There is no single answer.
A five-year fix gives certainty. It suits you if you value stable payments and plan to stay put. On the averages, the five-year rate (6.00%) is now just above the two-year rate (5.98%). So the usual discount for fixing longer has gone. Check the actual deals, not just the averages.
A two-year fix leaves you free to refinance sooner. It suits you if you think rates will fall back. But nobody can promise that. Savills expects mortgage rates to stay high until at least the second half of 2027.
Also think about fees, early repayment charges and whether you may move. A good broker can model each option for your numbers.
Common mistakes to avoid
- Waiting for rates to fall. They might. They might not. If your deal ends soon, the cost of waiting can be real.
- Looking only at the headline rate. Fees can change which deal is cheapest.
- Ignoring your LTV. A lower LTV can lower your rate.
- Not checking early repayment charges. Leaving a deal early can cost thousands.
- Going onto your SVR. It is almost always the costliest option.
- Stretching your budget to the limit. Leave a buffer for further rises.
Frequently asked questions
What is the average UK mortgage rate right now?
On 5 October 2026, Moneyfacts reported an average five-year fixed rate of 6.00% and an average two-year fixed rate of 5.98%. Rates move quickly, so check current figures before you decide.
Why have UK mortgage rates gone up?
Swap rates have risen as markets expect the Bank of England to raise rates. Inflation worries linked to higher energy prices have added to this.
Will mortgage rates go down soon?
Savills expects rates to stay high. It says they are unlikely to fall much before the second half of 2027. This is a forecast and could change.
Is the Bank of England going to raise interest rates?
The Bank held at 3.75% in September, with three of nine members voting for a rise. Markets expect a rise at the next meeting on 5 November. Nothing is certain until the decision.
Are UK house prices falling?
Not sharply. Nationwide shows annual growth of 0.8% in September, with prices down 0.2% on the month. Lloyds shows no annual change. Weakness is stronger in London and the South.
When can I remortgage?
Many lenders let you secure a new deal up to six months before your current one ends. Check your terms and speak to a broker.
Should I overpay my mortgage?
Only if your deal allows it and you have spare cash. Many fixed deals cap overpayments without a charge. Check yours first.
Final thoughts
UK mortgage rates have returned to levels not seen for three years. The jump from below 5% to about 6% in a few weeks has changed the numbers for buyers, sellers and anyone coming off a fixed deal.
The good news is you have options. Know your end date. Check your LTV. Speak to a broker. Run your budget at a higher rate. And keep an eye on two dates: the Budget on 28 October and the Bank of England on 5 November.
Do not panic. But do not wait either.
This article is for general information only. It is not financial advice. Speak to a qualified mortgage adviser about your own situation. Your home may be repossessed if you do not keep up repayments on your mortgage.
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