Average five-year fixed mortgage rate hits 6% for first time in three years
Also reported by BBC Business
Summary
The average rate for a five-year fixed mortgage in Great Britain has reached 6% for the first time in three years, making borrowing more expensive. This rise is due to changes in financial markets and has reduced the number of cheaper mortgage deals available.Key Facts
- The average five-year fixed mortgage rate is now 6.00%, the highest since September 2023.
- The average two-year fixed mortgage rate is close behind at 5.98%, the highest since December 2023.
- The number of fixed-rate mortgage deals below 5% has fallen from 1,494 to only nine since last month.
- The Bank of England base interest rate has not changed since December 2023, but bond market changes have pushed mortgage rates higher.
- A £250,000 mortgage fixed at 6% costs about £158 more per month than one fixed at 4.94%.
- Higher mortgage costs are starting to slow housing market growth and reduce buyer affordability.
- Estate agents report that even small increases in monthly repayments can cause buyers to lower their budget or pause buying.
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