Mortgage rates hit 6%: what to do if your deal ends soon

On Monday 5 October 2026 the average five-year fixed mortgage rate reached 6.00%, according to Moneyfacts. It was the first time in three years: the last reading that high was 6.03% on 27 September 2023. The average two-year fix was close behind at 5.98%. By mid-October the five-year average had dipped just under 6% again, but the two-year average was still close to 6%, up from around 5.7% a month earlier.

If your fixed rate ends in the next six months or so, this is the guide for you: what's pushing rates up, what it means for your payments, and the steps that protect you whichever way rates go next.

Why mortgage rates have jumped

Fixed rates aren't set by the Bank of England's base rate directly. Lenders price them from swap rates, which reflect where the markets think interest rates are heading over the next few years. The base rate itself has been held at 3.75% since December 2025.

• Energy prices: conflict in the Middle East has pushed up oil and gas prices, and with them inflation. CPI was 3.1% in August and the Bank expects it to climb to slightly above 4% in early 2027.
• Rate rise expectations: at the September meeting three of the nine Monetary Policy Committee members voted to raise the base rate. Markets now expect rises rather than the cuts they were predicting earlier in the year, and the next decision is on 5 November.
• Funding costs: higher swap rates and gilt yields make it more expensive for lenders to fund fixed deals, so they've repriced, some several times in a few weeks.

The speed of the change is the real story. Moneyfacts counted 1,494 fixed deals under 5% at the start of September. By 5 October there were just 9, excluding Northern Ireland-only products.

What it means for your monthly payments

Take a £180,000 repayment mortgage with 20 years left. Here's roughly what you'd pay each month at different rates:

• At 1.9% (a typical five-year fix taken out in 2021): about £902
• At 4.5%: about £1,139
• At 5.0%: about £1,188
• At 6.0%: about £1,290
• At an illustrative standard variable rate of 7.5%: about £1,450

Coming off a 2021 fix onto a 6% deal adds nearly £390 a month. Doing nothing and rolling onto your lender's standard variable rate costs another £160 a month on top. That's why the timing of your next deal matters more than the headline average.

If your deal ends in the next six months

• Lock in a rate now. Most lenders let you secure a new deal up to six months before your current one ends, and many product transfers can be booked three to six months ahead. A reserved rate protects you if prices keep rising.
• Keep watching after you've booked. Securing a deal doesn't normally stop you switching to a cheaper one before it starts. If rates fall, you can often move to the lower rate, though check for any fee you'd lose.
• Compare your lender with the market. Your lender's product transfer is your floor. Anything elsewhere has to beat it by enough to cover any fees and the paperwork. See our guide to switching your mortgage.
• Don't drift onto the SVR. Even a few months on the standard variable rate can cost hundreds of pounds.

Fix now, or wait?

Nobody knows for certain where rates go next. Some economists expect base rate rises in November and February, while others expect no change this year. The Autumn Budget on 28 October could move swap rates either way. That uncertainty is why securing a rate and keeping the option to switch is the safest approach for most people. You get protection if rates rise and you can still take a lower deal if they fall.

Trackers are cheaper on paper right now: the average two-year tracker was around 4.45% at the end of September, against about 5.94% for a two-year fix. But a tracker moves with the base rate, so your payments would rise straight away if the Bank raises rates. Our tracker vs fixed guide explains the trade-off.

The average isn't what you'll pay

Averages include every deal on the market, including the expensive ones. Even as the average climbed, some lenders cut rates. In mid-October NatWest launched a five-year fix at 4.98% and Yorkshire Building Society a two-year remortgage deal at 4.96%. The best deals depend on your loan-to-value, so check today's 2-year fixed and 5-year fixed rates, and watch the trend on our Market Pulse chart.

When rates are moving this fast, deals can be withdrawn within days. The simplest way to avoid missing a good one is to set a free rate alert. We'll email you when a matching deal appears. Tick "Remind me 6 months before my deal ends" and we'll also tell you when it's time to start looking.

This is general information based on market figures published in October 2026, not mortgage advice. Rates change daily. Speak to a qualified adviser before you make a decision.