UK Five-Year Mortgage Rate Breaches 6% for First Time This Year

Average fixed-rate home loan is nearing a 14-year high
Inflation, BOE hikes are increasing strains on the market

WATCH: London Rent is now so high that a woman on an average salary would need to double her pay to afford it. Haidi Stroud-Watts and Rishaad Salamat report.Source: Bloomberg

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By Damian Shepherd

July 4, 2023 at 8:45 AM UTC

This article is for subscribers only.

UK mortgage costs have jumped to fresh highs for the year as rising interest rates continue to wreak havoc on households and prospective homeowners.

The average five-year fixed-rate home loan rose to 6.01% on Tuesday, edging closer to the 14-year peak reached at the end of 2022, according to Moneyfacts Group Plc. The average two-year fixed-rate deal rose to 6.47% after breaching 6% for the first time since December last month.