5th October 2026
The number of sub-5% fixed mortgage deals has plummeted during September, while the average five-year fixed rate has now hit 6%, - Moneyfactscompare.co.uk analysis.
The number of sub-5% fixed mortgage deals has plunged by 99%, from 1,494 since the start of September 2026 to just nine today. This figure excludes deals that are exclusive to Northern Ireland lending only.
In contrast, the number of sub-5% variable rate mortgages has remained broadly stable, falling from 411 at the start of September to 389 today. This figure excludes deals that are exclusive to Northern Ireland lending only.
Including products available to borrowers in Northern Ireland only, there are 107 fixed rate mortgage deals priced below 5%, compared with 1,691 at the start of September 2026, a fall of over 1,500 deals. On the same basis, the number of sub-5% variable rate mortgages fell from 421 to 395. This is a combined total loss of 1,610 mortgage options across the mortgage market.
Average fixed mortgage rates have their highest levels in three-years. The average two-year fixed rate has risen to 5.98%, its highest point since mid-December 2023, while the average five-year fixed rate has increased to 6.00%, its highest point since late September 2023. These average rates have not been above 6% for around three years.
The biggest high street lenders made repeated fixed rate increases during September. Barclays increased selected fixed rates on four occasions, while HSBC, Lloyds Bank, Nationwide, NatWest, Santander and TSB each made three rounds of in creases.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said, “The past few weeks have seen pricing margins among major lenders come under immediate pressure from renewed swap rate volatility. As wholesale funding costs climb on the back of rising gilt yields, fixed rate adjustments are somewhat inevitable. The impact on sub-5% fixed mortgages has been brutal, with around 1,500 deals priced below 5% vanishing since the start of September while average five-year fixed rate has reached 6%, with the average two year not far behind. Average fixed mortgage rates have not been above 6% for around three years.
“The availability of sub-5% fixed mortgages has almost been wiped out since the start of September, with just nine deals left today compared with almost 1,500 at the start of the month, excluding deals available only for lending in Northern Ireland. This means 99% of these deals have vanished. Including deals that are exclusive for Northern Ireland lending, the number has fallen from 1,691 to just 107, a fall of 94%. This shows just how quickly the mortgage market has shifted for borrowers searching for the lowest rates.
In contrast, the number of sub-5% variable rate mortgages has remained broadly stable, from 411 at the start of September to 389 today, excluding deals available exclusively for lending in Northern Ireland. It may then be no surprise if borrowers are seriously considering a variable rate deal, such as a base rate tracker mortgage, particularly if it does not apply an early redemption penalty.
“Average fixed mortgage rates rising back to three-year highs will be disastrous news for borrowers. The average two-year fixed rate has risen to 5.98%, its highest point since mid-December 2023, while the average five-year fixed rate has reached 6.00%, its highest point since late September 2023. Borrowers who were hoping mortgage rates would stabilise will be disappointed. The country’s biggest lenders made repeated fixed rate increases during September, with Barclays increasing selected rates four times, while HSBC, Lloyds Bank, Nationwide, NatWest, Santander and TSB each made three rounds of increases. There have been some reductions along the way, but these have done little to offset the broader upward pressure on mortgage pricing.
“Lenders look at their margins very carefully, so it would be unwise for them to price deals too low when swap rates and wholesale funding costs are elevated.
Those coming to the end of a fixed deal would be wise to seek advice and compare deals carefully, particularly as borrowers could secure a new deal a few months before their existing mortgage ends. However, this varies among lenders, some may be three months, others could allow six months for a product transfer, so not everyone will be able to lock into a new deal right now.”