For the first time in three years, the average five-year fixed-rate mortgage has climbed to 6%, according to data from the financial information provider Moneyfacts. This shift reflects broader instability in global bond markets, which has made it more expensive for banks and building societies to secure the funds they lend to homeowners.

Two-year fixed-rate mortgages are also seeing significant upward pressure, currently averaging 5.98%. This represents the highest level for both mortgage types since late 2023. Financial institutions have responded to the current market climate by raising their rates, a move largely attributed to growing market expectations that the central bank may increase the base interest rate. While the data highlights the rising cost of borrowing, the underlying cause remains the volatility in the financial markets, which directly impacts the pricing strategies of mortgage lenders.