Five-Year Average Fix at Highest Level Since 2023: Financial Facts

The average two-year fixed rate jumped by 17 basis points and the five-year rate by 16 basis points over the past week as a wave of lenders raised rates.

Weekly interest rate monitoring data from Moneyfacts showed big moves following repricing by major banks and building societies.

The five-year average rate reached 5.88%, the highest level since October 2023, when it reached the same level in the wake of Liz Truss’s mini-Budget.

Meanwhile, the two-year interest rate averaged 5.84%, its highest level since April 21.

For borrowers with low deposits, the two-year average fixed at 95% loan-to-value ratio rose from 6.15% to 6.33%, while the five-year average at the same loan-to-value ratio rose from 6.07% to 6.25%.

Moneyfacts finance expert Rachel Springall says: “A wave of mortgage interest rate rises has swept the market this week, with fixed interest rate increases firmly dominating lender re-pricing.

“The major banks all moved to increase fixed-rate mortgages this week, with NatWest raising rates by up to 43 basis points, Santander by up to 45 basis points, HSBC by up to 37 basis points and TSB by up to 25 basis points.

“Halifax Bank and Lloyds Bank also increased selected fixed interest rates by up to 30 basis points. Barclays Bank also raised interest rates by up to 20 basis points.”

“Swap rates remain near 30-day highs, so there is still some uncertainty around the future direction of fixed mortgage pricing.

“There may be further hikes if lenders have not yet caught up with higher swap rates.”

“Mortgage pain shows no sign of easing for borrowers who can’t yet strike a new deal, especially those who have a five-year fixed loan and aren’t due to refinance until 2027,” Springall adds.

“The Bank of England estimates that 750,000 fixed-rate households due to end in 2026 are currently paying interest rates below 3%.”

Springall points out that in February 2022, there were less than 2% fixed-rate mortgages available, so abandoning expiring deals “would be a big shock to borrowers.”

Breakdown of fixed price movements

Mortgages Agreement – Increase fixed rate mortgage loans by up to 40 bits per second. Drawdowns: Two drawdowns on a fixed-rate mortgage.
Aldermore – Increase fixed rate mortgage loans by up to 55 bps.
April mortgages – Increase fixed rate mortgage loans by up to 35 bps.
Atomic bank – Increasing fixed-rate real estate loans by a percentage 15 bits per second On September 16, followed by an increase in fixed-rate mortgages by 35 bps On September 18th.
Bank of Ireland Brokers – Increase fixed rate mortgage loans by up to 21 bits per secondJBSP prices are fixed at up to 17 bits per second Fixed prices “detailed” by up to 35 bps.
Bank of Ireland in the United Kingdom – Increase fixed rate mortgage loans by up to 17 bits per second.
Barclays Mortgage – Increasing fixed rate mortgage loans by a certain percentage 20 bps.
Cambridge Building Society – Withdrawals: Withdrawing a fixed rate mortgage and a “step-one” fixed rate.
Coventry Building Society – Increase fixed rate mortgage loans by up to 25 bits per second. Drawdowns: Certain first-time buyer and fixed-rate mortgages are drawn down.
Dudley Building Society – Increase specified fixed rate mortgages by up to 60 bits per second.
First live – Increase specified fixed rate mortgages by up to 26 bits per second.
institution – Withdrawals: Mortgages marked “F1” and “F2” have been withdrawn.
General H – Increase fixed rate mortgage loans by up to 20 bps.
Halifax – Increase fixed rate mortgage loans by up to 30 bits per second.
HSBC – Increase fixed rate mortgage loans by up to 37bps.
Kensington – Increasing fixed rate mortgage loans by a certain percentage 20 bps. Withdrawals: “Prime” and “Primary” fixed-rate mortgages with a 1% withdrawal fee.
Leeds Building Society – Increase specified fixed rate mortgages by up to 21 bits per second. Withdrawals: 5.01% fixed rate and 5.09% fixed withdrawal rate.
Leek Building Society – Increase fixed rate real estate loans by a percentage 20 bps.
Lloyds Bank – Increase fixed rate mortgage loans by up to 30 bits per secondexcluding fixed interest rate “low deposits”.
Mansfield Building Society – Withdrawal: Withdrawal of fixed rate mortgages.
Milton Building Society – Increase specified fixed rate mortgages by up to 10 bps.
National Building Society – Increase specified fixed rate mortgages by up to 30 bits per second.
NatWest – Increase fixed rate mortgage loans by up to 43 bits per second.
NatWest Middleware Solutions – Increase fixed rate mortgage loans by up to 43 bits per second.
Newbury Building Society – Withdrawals: Specified fixed rate mortgage loans have been withdrawn.
Newcastle Building Society – Increase fixed rate mortgage loans by up to 65 bits per secondincluding the fixed price for “new construction”. Withdrawals: Select fixed rate mortgages have been withdrawn.
Pepper money – Increase fixed rate real estate loans by a percentage 20 bps.
Emirate Building Society – Increase specified fixed rate mortgages by up to 40 bits per second.
Royal Bank of Scotland – Increase fixed rate mortgage loans by up to 43 bits per second.
Saffron Building Society – Withdrawals: Select fixed rate mortgages in the “Self-Employed”, “Contractor”, “Basic”, “LTI Professional”, “JBSP” and “Premium Income” categories have been withdrawn.
Santander – Increase specified fixed rate mortgages by up to 15 bits per second On September 14, followed by fixed-rate mortgage increases of up to 45 bps On September 16th.
Scottish Building Society – Increase specified fixed rate mortgages by up to 35 bps.
Skipton Building Society – Increase fixed rate mortgage loans by up to 37bps.
Tipton and Cosley Building Society – Withdrawals: Two fixed rate mortgages were withdrawn.
Telecommunication Standardization Bureau – Increase fixed rate real estate loans by a percentage 10 bps On September 15, followed by increases of up to 25 bits per second On September 17th.
Vernon Building Society – Increasing fixed rate mortgage loans by a certain percentage 20 bps.
Vida Homeloans – Increase fixed rate mortgage loans by up to 35 bps.
Virgo money – Increase fixed rate mortgage loans by up to 18 bits per second To buy a house and up 21 bits per second To remortgage.
West Bromwich Building Society – Increase specified fixed rate mortgages by up to 45 bps. Withdrawals: Seven fixed-rate mortgages were withdrawn on September 16.
The West is one – Two-year fixed-rate mortgages increased by 55 bps Five-year fixed-rate mortgages rose by 65 bits per second.
Yorkshire Building Society – Increase fixed rate mortgage loans by up to 42 bits per second.

Variable tracking and movements at discounted variable rates

Mortgages Agreement – Increase variable tracking rates by 15 bits per second.
Dudley Building Society – Variable price discounted by a percentage 40 bits per second.
HSBC – Increase variable tracking rates by 10 bps.
Santander – Increase variable tracking rates by 20 bps.
Stafford Building Society – The range has been withdrawn and replaced with variable tracking rates for a period starting from 5.19%.