{
  "id": 12158941,
  "title": "‘Disastrous’: Average five-year fixed mortgage rate surges to six per cent",
  "url": "https://urgent.news/2026/10/05/disastrous-average-five-year-fixed-mortgage-rate-surges-to-six-per",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-05T13:14:47.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/disastrous-average-five-year-fixed-mortgage-rate-surges-to-six-per-cent/"
  },
  "original_language": "en",
  "account": "The average five-year fixed mortgage rate has surpassed the six per cent threshold for the first time in three years, according to Moneyfacts. This surge is due to a flurry of lenders raising their prices, driven by renewed inflationary pressures affecting global economies. Barclays has increased its fixed rates multiple times, while other institutions such as HSBC, Lloyds, Nationwide, Natwest, Santander, and TSB have also implemented three rounds of hikes. Rachel Springall, a finance expert at Moneyfacts, warns that this rise could be catastrophic for borrowers. The cost of a £250,000 loan fixed at six per cent for five years would be £158 higher than a similar loan at 4.94 per cent, which was the average rate at the start of February following the outbreak of the US-Iran war. Inflation volatility has been fueled by the re-pricing of swap rates, which serve as a benchmark for fixed-rate mortgage pricing and indicate future interest rate expectations. The Bank of England has maintained its rates at 3.75 per cent, but economists anticipate an increase in the near future. The central bank's monthly survey of firms' price expectations, the Decision Makers' Panel, revealed growing jitteriness among price forecasts due to the potential passage of energy price increases to consumers. Inflation expectations, both in the short and long term, have risen, reflecting the mounting price pressures across the UK economy. The Bank's interest rate-setter, Dave Ramsden, has noted that inflation risks have \"tilted more to the upside\" since the Bank's last decision in September. If the upside pressures on inflation continue to escalate, Ramsden suggests there could be a case for raising the Bank Rate.",
  "summary": "The average five-year fixed mortgage rate has broken the six per cent mark for the first time in three years after a fresh raft of lenders hiked prices. The typical five-year agreement has hit six per cent, according to Moneyfacts, while the average two-year is a whisker behind at 5.98 per cent. It is the [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}