Watch the 60 second version, or read on for the full breakdown.
A lot of people fixed their mortgage at 1% or 2% a few years ago, and many of those deals are now running out. This week the average fixed rate hit a level we have not seen for three years. So this edition is about one question: if your deal ends soon, what will your new payment be, and what can you do about it?
Fixed rates hit 6% Confirmed
On 5 October, Moneyfacts reported that the average five year fixed rate had reached 6.00%, the first time in about three years. The average two year fix was 5.98%, its highest since December 2023.
The bigger shock is the choice. At the start of September there were around 1,500 fixed deals priced below 5%. By 5 October there were just nine. Most of the big lenders raised rates two or three times during September, and Barclays did it four times.
The first cuts, but don't wait for more Watch
There was some better news later in the week. Yorkshire Building Society cut rates by up to 0.50% on 8 October. Its 95% five year deal for first time buyers fell from 6.29% to 5.79%, and its 75% five year fix fell from 5.07% to 4.97%. Halifax and Accord also trimmed some rates.
But the markets lenders use to price fixed rates went the other way. On 8 October the yield on 10 year UK government bonds rose to about 5.53%, its highest since July 2007, pushed up by a jump in oil prices. When those borrowing costs rise, lenders' costs rise too. On top of that, markets expect the Bank of England to raise Bank Rate from 3.75% at its next decision on 5 November.
So a few cuts are welcome, but they do not mean rates are on the way down. They could just as easily go back up.
What it could do to your payment
Here is what the jump looks like on a £200,000 repayment mortgage with 20 years left:
| Your old rate | New rate | Monthly payment | Extra each month |
|---|---|---|---|
| 1.5% | 5% | £965 to £1,320 | +£355 |
| 1.5% | 6% | £965 to £1,433 | +£468 |
| 2% | 5% | £1,012 to £1,320 | +£308 |
| 2% | 6% | £1,012 to £1,433 | +£421 |
That is up to £5,600 a year more for exactly the same mortgage. Your own figure depends on your balance, how long you have left and the rate you are offered, which is why I built the calculator below.
What will your new payment be?
Put in your balance, or just what you pay now if you don't know it. It shows your new payment at today's rates, and walks you through staying with your lender or moving.
Work out my new payment →What it means for you
- Deal ending in the next six months? Secure a new rate now. Most lenders let existing customers lock in a deal up to six months before their fixed rate ends, and a remortgage to a new lender can usually be arranged months ahead too. Your new rate only starts when your current deal ends, so you keep paying your current rate until then.
- If rates fall before then, you can usually switch to the cheaper deal before it starts. Securing a rate early protects you on the way up without locking you out on the way down.
- Compare both routes. Staying with your lender (a product transfer) is quick and simple. Moving lender (a remortgage) takes longer but can be cheaper. Our product transfer vs remortgage guide compares the two.
- Thinking of extending your term to keep payments down? It can help with the monthly cost, but you will pay more interest overall, and not every lender allows it on a product transfer.
- Buying a home? Lloyds says prices were flat in September, so there is room to negotiate. But with rates where they are, the monthly payment matters more than the asking price. Get your agreement in principle in place first.
The dates to watch
20 October: latest jobs and wages figures.
21 October: September inflation figures.
28 October: the Budget.
5 November: the Bank of England's next rate decision.
Damp and mould: private landlords could get legal repair deadlines
On 9 October the government opened a consultation on extending Awaab's Law to private rented homes in England. Social landlords already have to investigate and fix serious hazards like damp and mould within set deadlines. The plan is to bring private landlords into line.
The options being looked at include investigating a serious hazard within 5, 10 or 15 working days, and dealing with an emergency within 12, 24 or 48 hours. Tenants would be able to take a landlord to court if the deadlines are missed, or complain to the new landlord ombudsman.
It is only a consultation for now. It closes on 18 December 2026, and no start date has been set. If you are a landlord, it is worth keeping good records now of any repairs you are asked to do and when you did them.
That is the week. The next big moments are the Budget on 28 October and the Bank's decision on 5 November, and we will cover what they change when they happen. If you know someone coming off a cheap fix, send them this page. And if anything here raises a question about your own mortgage, drop us a line, or have a no-pressure chat with Debbie at DS Financial.
General information, not financial, tax or legal advice. Figures correct at the time of writing (9 October 2026) and may change quickly. Repayment examples are illustrative only, calculated on a £200,000 capital and interest mortgage over 20 years, and will differ for your own mortgage. Mortgage rate figures are subject to lender criteria and change. Your home may be repossessed if you do not keep up repayments on your mortgage.
Sources: Moneyfactscompare, "Average 5-Year Fixed Mortgage Rate Hits 6%" (5 October 2026), The Intermediary, Moneyfacts sub-5% deals (5 October 2026), The Intermediary, Yorkshire Building Society rate cuts (8 October 2026), Reuters via Investing.com, UK 10 year borrowing costs at 19 year high (8 October 2026), Lloyds House Price Index, September 2026 (7 October 2026), GOV.UK, Extending Awaab's Law to private rented tenancies (9 October 2026), Bank of England, upcoming MPC dates.