Lenders Yank 472 Mortgage Deals as Five-Year Fixed Rates Surge Above 5%

UK mortgage markets saw abrupt disruption this week as lenders withdrew hundreds of products and average fixed rates climbed above 5%.

“Turmoil in the UK mortgage market is at its most intense since the mini-Budget of 2022, figures suggest, as the average rate on two-year fixed deals rose above 5%”

BBC

Moneyfacts data reported that 472 residential mortgage products were pulled from the market over 48 hours — about 6.5% of available deals — leaving 7,164 options for borrowers, while headline averages for two- and five-year fixes moved above the 5% mark, a level commentators said has not been seen since last summer and the aftermath of the 2022 mini‑Budget.

BBC

(This surge has been described as the most intense market turmoil since that September 2022 episode.)

Specific headline rates have moved sharply: Moneyfacts data showed the average two‑year fixed rate rose to 5.01% (up from 4.84%), while the average five‑year fixed moved to about 5.09% (from roughly 4.96%), pushing the overall average mortgage rate above 5% — the highest reading since last summer.

Some data sets reported slightly different day‑to‑day movements for five‑year products but all indicate a clear jump into the 5% neighbourhood for typical two‑ and five‑year deals.

GB News

Lenders and market analysts attributed the mass withdrawal and rate repricing to fast‑moving expectations around future Bank of England policy and sharply higher swap rates, with recent geopolitical shocks also cited as a trigger.

“Turmoil in the UK mortgage market is at its most intense since the mini-Budget of 2022, figures suggest, as the average rate on two-year fixed deals rose above 5%”

BBC

Moneyfacts’ Adam French described the recent period as “some of the most turbulent in the UK mortgage market since the aftermath of the September 2022 mini‑Budget,” while both outlets linked shifting rate expectations to rising oil prices and geopolitical conflict in the Middle East that have reduced market bets on UK rate cuts this year.

The immediate practical impact and advice for borrowers was emphasised: homeowners up for remortgage or looking for a new deal face higher costs and fewer choices, and experts advised locking in rates or consulting brokers.

GB News reported that major providers including HSBC, Nationwide and Coventry had already increased selected fixed deals, and Moneyfacts and independent advisers urged borrowers with deals ending within six months to start searching and consider securing a rate early to avoid further rises.

GB News

Observers placed the withdrawal wave in historical context, noting the scale is the largest since the mini‑Budget fallout when 935 products were pulled in a single day in September 2022; analysts also said many pulled deals may return once lenders reprice to reflect higher swap and funding costs.

“Turmoil in the UK mortgage market is at its most intense since the mini-Budget of 2022, figures suggest, as the average rate on two-year fixed deals rose above 5%”

BBC

Both outlets warned the ultimate path for mortgage rates will depend on how inflation expectations and global markets respond to ongoing geopolitical developments.

BBC