Home Lab Rate Watch: Mortgage rates have moved — The Bank Rate hasn’t?
Mortgage Rates Hit 6% — What’s Changed?
When we recently wrote about the changing interest-rate landscape, our message was simple: waiting to review your mortgage isn't necessarily the risk-free option it might appear to be.
Unfortunately, the mortgage market has moved quickly since then.
The average UK five-year fixed mortgage rate has now reached 6% for the first time in around three years, while the average two-year fixed rate is close behind at 5.98%. Perhaps even more strikingly, the number of fixed mortgage products available below 5% has reportedly fallen from 1,494 at the beginning of September to just nine. The Guardian
But Bank Rate hasn't increased — so what's going on?
This is an important point.
The Bank of England's Bank Rate remains at 3.75%. At its September meeting, six members of the Monetary Policy Committee voted to leave rates unchanged, while three wanted an immediate increase to 4%. Bank of England
However, fixed mortgage rates don't simply wait for the Bank of England to act.
Lenders also have to consider what's happening in financial markets and, importantly, what markets expect interest rates to do in the future.
Those expectations have changed considerably.
Markets are now pricing approximately 1 percentage point of additional Bank of England tightening by the end of 2027. Reuters
As expectations have changed, the cost of funding fixed-rate mortgages has increased — and lenders have been repricing their mortgage ranges accordingly.
We're already seeing the impact
This isn't just something that might affect borrowers in the future.
The Bank of England's latest mortgage data showed that the effective interest rate on newly drawn mortgages increased from 4.45% in July to 4.60% in August. Bank of England
Since then, advertised mortgage rates have moved considerably further.
That's exactly why we previously highlighted the danger of waiting for an announcement from the Bank of England before reviewing your mortgage.
The mortgage market can move before Bank Rate does.
What should mortgage borrowers do?
Don't panic — but don't ignore it either.
Nobody knows with certainty whether mortgage rates will continue to rise, stabilise or fall again. Economic forecasts and market expectations can change surprisingly quickly.
But if you have a mortgage, it makes sense to understand where you stand.
Many lenders will consider arranging a new mortgage or product transfer up to around six months before an existing deal ends, although individual lender rules vary.
Reviewing things early doesn't necessarily mean you need to change your mortgage immediately.
It means you can understand what is available, what your repayments could look like and what options you have if rates continue to move.
And if circumstances change or better options become available before your new mortgage begins, those options can potentially be reviewed again.
Planning beats predicting
That's probably even more relevant today than when we first wrote it.
You don't need to correctly predict the next Bank of England decision.
You need to understand how different outcomes could affect your mortgage and have a plan for dealing with them.
At Home Lab Mortgages, that's exactly what we're here to help with.
Concerned about what changing mortgage rates could mean for you? Get in touch and we'll help you understand your options.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The information above is for general information only and does not constitute personal financial advice. Mortgage availability, interest rates and lending criteria are subject to change.
Source: BBC News, 6 October 2026 – reporting on the latest changes in UK mortgage rates and the changing outlook for interest rates.