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Nearly one million homeowners across the UK are expected to come to the end of their five-year fixed mortgage deals in 2026, and many could face a noticeable increase in monthly repayments.
Back in 2021, almost one million five-year fixed-rate mortgages were taken out when interest rates were exceptionally low, with deals below 2% widely available. Fast forward to today, and average five-year fixed mortgage rates are closer to 5%, meaning refinancing could come as a shock for some households.
Recent analysis suggests that higher rates could increase annual mortgage costs by over £2,000 for the average homeowner, particularly for those who bought at 2021 prices with a typical deposit. Those who allow their mortgage to move onto a lender’s standard variable rate could face even steeper increases.
While this may sound worrying, there is some positive news. Mortgage rates have eased from their recent peak, helping to soften the impact compared to last year. However, careful planning is now more important than ever.
Our Advice to Homeowners
If your fixed-rate mortgage is ending in 2026, start preparing early. Reviewing your finances, understanding your property’s value, and seeking advice well in advance can make a significant difference. When remortgaging, it’s important to consider the overall cost, including fees—not just the headline interest rate.
At Ashton Lee Surveyors, we regularly support homeowners who are remortgaging, selling, or reassessing their property. A clear understanding of your home’s condition and value can help you make confident decisions during times of financial change.
If you’re unsure how upcoming mortgage changes could affect your plans, we’re always happy to offer straightforward, practical advice.
