Average 5-year fixed rate rises to 6.01%

The average 5-year fixed rate has risen to 6.01%, according to the latest figures from Moneyfacts.

This news comes following weeks of volatility in the mortgage market due to rising interest rates and high levels of inflation.

The average 2-year mortgage jumped from 6.42% to 6.47% on Monday.


Riz Malik, director of R3 Mortgages:

“Unless the chaos stemming from Threadneedle Street is resolved, average rates will continue to rise.

“13 consecutive rate hikes have failed to calm inflation, which indicates that other measures need to be explored.

“The present members of the Monetary Policy Committee are not fulfilling their roles appropriately and should be replaced.

“Failing that, the government should exercise its powers are intervene, which they can do in extreme circumstances.”

Imran Hussain, director at Harmony Financial Services:

“This kind of data can be very misleading as there are plenty of deals under 6% for 5-year fixes.

“That being said, anyone with six months left on their current deal should start reviewing their options now and look to secure a deal.

“The mortgage market is moving fast.”

Paul Welch, CEO at 

“As long as SWAP rates, the rates which banks pay to borrow money, remain high, then fixed rates for mortgages will continue to rise.

“If core inflation doesn’t come down significantly this month, or God forbid rises, then interest rates and SWAP rates will continue to go up and up.

“It gives me no pleasure to say that we could realistically see some fixed rates reach 7% before the summer is out.

“Currently, 10- and 15-year SWAP rates are the best value for money, so if you like the stability of a fixed rate and you can afford to fix for the long term, then you could try a 10-year fixed rate mortgage, with a rate of less than 5% currently.”

Lewis Shaw, founder of Shaw Financial Services

“Moneyfacts is a valuable resource and is great for showing us trends. However, it can be a little misleading because no one has an average mortgage rate: they have a specific one.

“The current range of 5-year fixed rates excluding direct-to-consumer products and most specialist lenders (correct as of 04/07/2023) is between 5.19%-7.47%, spanning the entire loan-to-value spectrum.

“So whilst Moneyfacts are right about the averages, it’s vital that consumers understand there is a large range of options, many of which are below 6% if they have a good deposit or chunk of equity in their property.”

Peter Dockar, chief commercial officer at fintech residential mortgage lender, Gen H: 

“This is a very unusual time. This volatility is difficult for us to manage as a lender, because it is completely outside our control, and we see the negative impact this is having on homeowners and aspiring buyers alike.

“As fixed rates go up, so too do variable rates and SVRs – and things may still get worse before they get better.

“We’re doing everything we can to support our mortgage customers – as all lenders should – but homeowners and homebuyers also need and deserve better support from the Government.”

Rob Gill, managing director at Altura Mortgage Finance: 

“We’re seeing a relentless rise in mortgage rates, driven by steep rises in bond yields, swap rates and other money market rates in pretty much everything sterling-denominated.

“It feels very much like a market squeeze.

“Logic suggests it has to end eventually, and such squeezes often end with a crash. It certainly doesn’t feel like that however to lenders, brokers and borrowers all faced with a market marching ever upwards.”

Samuel Mather-Holgate of Mather & Murray Financial: 

“Now isn’t the time to fix for longer. Certainty of repayments and the ability to budget could cost you dearly in the long run.

“Interest rates are inverted over 2-, 5- and 10-years with the cheapest of these being 5.89% (Halifax), 5.36% (Virgin) and 4.94% (HSBC) respectively.

“This is a sign that the market thinks rates will come down and The Plank of England, Andrew Bailey, will have to reverse his devastating rate hikes that have seen so much pain applied to homeowners.

“The next inflation print should show a significant fall, with fuel, food and energy bills all on the decline. This could be a significant moment for the mortgage market as lenders race to be top of the best buys table.”

Justin Moy, founder at EHF Mortgages:

There are still plenty of 5-yr deals below 6% currently available to both residential and buy to let borrowers.

“However, the trend is worrying, and quick action to secure a new deal is essential. With more lenders offering an option up to 6 months before the expiry of their current deal, it is so important to engage with a mortgage broker to see what is available, and to be ready to make a quick decision.

“We are seeing a number of loyalty deals for Product Transfers much cheaper than average rates. For example, Nationwide BS are offering existing clients 5.14% fixed for 5-years with a £999 Fee (subject to LTV).

“Use the experience of a mortgage broker to get the right product for you, and to keep watching for any improvements – they will look to switch you to a cheaper deal if one comes along.”

Elliott Culley, director at Switch Mortgage Finance: 

“Unfortunately, under current forecasts, rates still haven’t reached their peak.

“5-year fixed rates have and continue to be cheaper than 2-year fixes and some clients have decided to fix for longer due to the uncertain outlook.

“There are still 5-year fixed rates under 6% and customers should remember this is an average rate. The current predictions still show rates should reduce by the end of 2024, albeit not to the low levels seen in the past.

“So, we are seeing more clients opting for a 2-year fixed in the hope rates will be lower when it comes to their next renewal.”

Nick Mendes, mortgage technical manager at John Charcol:

“Swap rates have continued to see a steady increase over the past fortnight, which has resulted in lenders repricing fixed rates on an upward trajectory.

“The majority of the big high street lenders have already made substantial increases to their rates which means they currently sit outside of the best buys. 

“Fingers crossed that rates might stop rising soon if swap rates calm down, although I still think we may see further increases in the future if there isn’t substantial progress in bringing down inflation.”