There are now fewer than 10 mortgage deals on the market at less than 5%, according to Moneyfactscompare.co.uk, which released the data today.
It comes as mortgage lenders pass on higher financing costs to borrowers who take out new deals. Barclays has increased fixed interest rates on four occasions in the past month, and HSBC, Lloyds Bank, Nationwide, NatWest, Santander and TSB have all made three rounds of increases.
As such, Moneyfactscompare reported this morning, the number of sub-5% fixed mortgage deals has fallen by 99%, from 1,494 since the start of September 2026 to just nine today.
The number of mortgages with variable rates of less than 5% has remained broadly the same, falling from 411 to 389 today, he said. These figures do not include exclusive deals for Northern Ireland lending only.
Taking into account products available to borrowers in Northern Ireland only, there are 107 fixed rate mortgage deals at less than 5%, compared to 1,691 at the start of September 2026, a decrease of more than 1,500 deals.
How much are fixed rate mortgages today?
The data shows that average fixed mortgage interest rates have reached their highest levels in three years.
The typical two-year fixed rate rose to 5.98%, its highest point since mid-December 2023, while the average five-year fixed rate rose to 6%, its highest point since late September 2023, Moneyfactcompare.co.uk said.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “With wholesale funding costs rising on the back of rising government bond yields, adjustments to fixed interest rates are more or less inevitable.
“The impact on sub-5% fixed mortgages has been brutal, with around 1,500 sub-5% deals disappearing since the start of September, while the average five-year fixed rate has reached 6%, with the two-year average not far behind.
“Fixed mortgage interest rates have averaged no more than 6% for about three years.”
Springall added that it would not be “surprising” if borrowers seriously considered a variable rate deal, such as a mortgage that tracks the prime rate, especially if it does not apply an early redemption penalty.
What is your advice for borrowers looking for a new deal?
In times of rising interest rates it is important to seek advice from a broker who can access the entire market and find the best deal for you at the moment.
If a fixed-rate deal is due to close within the next six months, you can start looking for a mortgage now and secure a new rate before rates rise further. If prices drop in the meantime, your broker can look for a better deal.
William Coe, a mortgage broker with Clearly Mortgages, had some advice. “Borrowers should not assume that an average of 6% means they have to accept a 6% mortgage interest rate. There are still competitive products available, especially for those with larger deposits, so it’s important to shop around,” he said.
He added: “The market has moved significantly in a short period of time. For borrowers who are approaching the end of their current deal, it is important to start looking at their options early.
“If prices continue to rise, securing a competitive product sooner rather than later can make a big difference in monthly payments.”
