Average UK mortgage rates have climbed back above 5% as lenders rapidly withdraw products from the market, according to new data from Moneyfacts. The average two-year fixed rate has risen to 5.01% while the typical five-year fix has reached 5.09%, both hitting their highest levels since summer 2025.
Adam French, Head of Consumer Finance at Moneyfactscompare.co.uk, said:
“Recent days have been some of the most turbulent in the UK mortgage market since the aftermath of the September 2022 mini-Budget. In the last 48 hours, almost 500 residential mortgage products have been withdrawn as lenders reacted to rapidly rising swap rates. However, the scale is nowhere near the shock seen in late September 2022 when 935 products, which accounted for more than a quarter of the market at the time, disappeared in a single day.
Many of these deals are likely to return within the next few days and weeks as lenders adjust their pricing to higher rate expectations. Moneyfacts average mortgage rates have also jumped considerably higher, with the typical two-year fixed rate now at 5.01% for the first time since August 2025 and the average five-year fix surging past 5% to reach 5.09%.
It’s unwelcome news for borrowers, as the prospect of falling mortgage rates has quickly given way to rate rises. How far they could go is now heavily dependent on how global markets and inflation expectations evolve as conflict in the Middle East unfolds.”
