Five-year fixed mortgages average 6% for the first time in three years
Lenders have been charging more for new fixed-rate mortgages as their own costs climb.
AI illustrationThe average rate on a five-year fixed mortgage has reached 6%, the first time in three years it has been that high.
According to reports, data from the financial information provider Moneyfacts puts the five-year average at 6.00%, the highest since September 2023. The two-year fixed average was reported at 5.98%, the highest since December of that year.
Lenders have been charging more for new fixed-rate loans as their own costs climb, and the increases have reportedly come in recent weeks. Unease in money markets has reportedly made the loans costlier to offer.
Banks and building societies have been lifting prices, it was reported, with bond market turmoil feeding expectations that the base rate will go up.