Average five-year fixed mortgage rate hits 6% for first time in three years
Source: Guardian Econ ↗ (cross-verified by 2 outlets — full list below)
Banks and building societies raise prices as turmoil in bond markets increases expectations of base rate rise The average cost of a five-year fixed-rate mortgage has hit the 6% barrier for the first time in three years, as jitters in the money markets make the loans more expensive for lenders to offer.
Figures from financial information provider Moneyfacts show the average is now 6.00%, its highest point since September 2023, while the average two-year fixed rate is not far behind at 5.98%, its hi.
RBI points to higher inflation and energy costs as it shifts to ‘tightening’ outlook.
⚡ Effects Interpreter
🌍World Economylow impact
What this means for you
- ▶International lenders might factor this into their next round of forecasts.
- ▶Global growth estimates are the kind of thing that shifts a little with a story like this.
🏙️Local Economylow impact
What this means for you
- ▶Local firms often watch national data before setting their own prices.
- ▶Your take-home pay may feel an indirect pull from shifts like this.
🏦Rates & Bankslow impact
What this means for you
- ▶Fixed and variable borrowers alike could want to keep half an eye on this.
- ▶The next rate-setting meeting is a more likely trigger than this news alone.
❤️Healthhigh impact
What this means for you
- ▶Being kind to yourself matters just as much as staying informed.
- ▶Local surgeries and clinics may see a short-lived rise in enquiries.
💷Wealthlow impact
What this means for you
- ▶Your financial adviser, if you have one, may already be watching this.
- ▶Time in the market usually matters more than timing the market around this kind of news.
🏠Housingmedium impact
What this means for you
- ▶A patient seller usually fares better than one rushing to react to headlines.
- ▶Bricks and mortar tend to hold steady while other markets swing about.
🌍 Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone — the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone — the real impact in the UAE depends more on local healthcare capacity than the figures above.