# Mortgage misery as average five-year deal hits 6% for first time in three years

By David Fell — 2026-10-05

David Fell, lead analyst at Hamptons, insists rising borrowing costs are having a big impact after an average five-year mortgage deal hit six per cent for the first time in three years.

He said: “The transition away from historically cheap mortgage rates is proving to be a marathon rather than a sprint.

“The weight of higher borrowing costs is still filtering through slowly, ensuring that household spending power remains under pressure five years after mortgage rates first started rising.

“This means today’s buyers are increasingly cautious about taking on debt at borrowing costs that younger generations have not experienced.

“Despite rising rates, first-time buyer numbers have remained relatively strong. For many, the pain of higher monthly mortgage bills is more than matched by the reality of rapidly rising rents.

“Those looking to remortgage haven’t been spared from the pressure either. For the first time in a while, homeowners coming off two-year fixed terms are now confronting payment hikes rather than reductions.

“While borrowers rolling off ultra-cheap five-year fixed deals have seen payment jumps since late 2022, the scale of these increases is now expanding.

“Current market rates represent a material adjustment for anyone coming off longer fixed terms, even if they have had some time to prepare.”

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