Average five-year fix reaches 5.88%, the highest since October 2023, after a week of lender rate rises

Moneyfacts data published on 18 September shows the average five-year fixed mortgage rose 16 basis points in a week to 5.88%, matching its October 2023 level, while the average two-year fix rose 17 basis points to 5.84%. The rises follow repricing across the major lenders, including NatWest (up to 43bps), Santander (up to 45bps) and HSBC (up to 37bps), with swap rates, the benchmark lenders price fixed deals from, near 30-day highs. For buyers, especially those with small deposits, where the average two-year fix at 95% loan-to-value is now 6.33%, monthly costs are higher than a week ago, and for sellers that can mean fewer buyers able to stretch to the asking price. More rises are possible if lenders have not yet caught up with swap rates, and the Bank of England estimates 750,000 households on fixes below 3% expiring in 2026 face a sharp jump when they refinance.