Between the start of September and 5 October, the number of sub-5% fixed-rate mortgage deals on the market fell from 1,494 to nine, according to Moneyfacts. The average two-year fix is now 5.98%, the highest since December 2023.
I read that as a change in who can buy, not a change in how much anyone wants to. The HomeOwners Alliance puts the cost of a £250,000 five-year fix at 6% over 25 years at about £1,611 a month. That's around £645 for every £100,000 borrowed, so the people hit hardest are the ones who need the biggest loans.
Our own Q3 data fits that. The median asking price in the North East was £180,000 and homes went sold subject to contract in 51 days on average. In the South West the median was £325,000 and it took 81. London was £535,000 and 73. Higher prices, bigger loans, slower sales.
For anyone investing, or helping a buyer, the old habit is worth keeping: rerun the deal a full point above the quote and see what's left.
Co-founder of Propalt and a property investor and developer for 20 years
