Lenders are charging more for new fixed-rate mortgages, with the average five-year fixed rate reaching 6% for the first time in three years. Rates rise as banks and building societies pass on higher costs they face when offering these products.
The BBC and The Guardian both cite data from Moneyfacts showing the average five-year fixed rate hits 6.00%—the highest level since around September 2023. The Guardian also notes that the average two-year fixed rate is close to that level at 5.98%, marking its highest point since late 2023. The outlets link the increase to recent instability in bond and money markets, which raises lenders’ expectations of interest-rate movements and increases the cost of hedging and funding fixed deals.
While both reports agree on the headline rate figures and the broad market driver, their emphasis differs: BBC focuses on the overall rise in new fixed-rate pricing, whereas The Guardian also provides the two-year rate comparison and more detail on the market conditions influencing lenders’ pricing.
