If your fixed-rate mortgage is ending this year, you are far from alone. According to UK Finance data, roughly 1.8 million fixed-rate deals expire in 2026. For many households, the jump from a rate locked in during the pandemic years to what is available today will be the biggest single change to their monthly budget in years. Acting early, and with the right information, can make a real difference.
Why the Numbers Are So Sharp Right Now
The Bank of England held its base rate at 3.75% at its 30 July 2026 meeting. Average two-year fixed mortgage rates are sitting around 5.5% to 5.6%, with five-year fixes in a similar range. Compare that with the sub-2% deals that were widely available between 2020 and 2022, and the gap is striking. Around 85% of UK borrowers are on fixed-rate products, so when a deal ends, the change in payment lands all at once rather than gradually.
What Payment Shock Looks Like in Practice
Take a repayment mortgage of £200,000 with 20 years remaining. On a 1.8% rate, the monthly payment is roughly £990. Move that same balance onto a 5.5% rate and the monthly payment rises to around £1,370. That is approximately £380 more every month, or over £4,500 a year. The exact figures depend on your remaining term and balance, but for many households this is a meaningful shift in outgoings, not a marginal one.
How Far in Advance Should You Start Looking
Most lenders hold a mortgage offer for six months. That means you can agree a new rate up to six months before your current deal expires, without paying an early repayment charge (ERC). An ERC is the fee your lender charges if you leave a fixed deal before its end date, and it can be several thousand pounds on larger mortgages. Checking your current deal end date and whether any ERC applies is the first practical step. If you are within six months of expiry, you can start the process now.
Two Years, Five Years, or a Tracker
The choice between fixing for two or five years comes down to your view of where rates are heading, and your appetite for uncertainty. A two-year fix gives you the chance to remortgage again sooner if rates fall, but you carry the risk that they do not. A five-year fix offers payment certainty for longer, which suits borrowers who want to budget confidently or who are stretching their finances. Rates on two and five-year fixes are currently close, so the premium for longer security is relatively small.
A tracker mortgage follows the base rate directly, typically at a set margin above it. If you expect the base rate to fall steadily over the next year or two, a tracker can work in your favour. The downside is that payments can rise as well as fall, and there is no ceiling on that movement unless you choose a capped product. Trackers tend to suit borrowers with some financial buffer who are prepared to absorb short-term variability.
Why Waiting for a Base Rate Cut May Not Help
It is tempting to hold off remortgaging in the hope that a base rate cut will bring fixed rates down. The reality is more complicated. Fixed mortgage rates are priced off swap rates, which are what lenders pay in financial markets to fund fixed deals. Swap rates move on expectations of future rates, not just the current base rate. A base rate cut that the market has already anticipated may produce little or no movement in fixed mortgage rates. Waiting can cost you the certainty of a rate you could lock today, while the outcome remains unpredictable.
Your Remortgage Checklist
- Find your deal end date. Check your original mortgage offer or your lender's online account. Note it in your calendar with a six-month reminder before it.
- Check your early repayment charge. Your mortgage offer or your lender's customer service team can confirm the ERC amount and when it drops to zero.
- Review your loan-to-value ratio. House price growth over the past few years may have reduced your LTV (the proportion of your home's value you owe). A lower LTV often unlocks better rates, so it is worth getting a sense of your current property value.
- Gather your paperwork. Lenders will want recent payslips, bank statements, and proof of identity. Self-employed borrowers typically need two to three years of accounts.
- Seek whole-of-market mortgage advice. A whole-of-market broker can search across lenders rather than being limited to one provider's products. Speak to our team if you would like a recommendation, or ask your solicitor about any legal aspects of your remortgage.
The rate environment in 2026 is genuinely different from the one in which many current fixed deals were arranged. Starting the process early, understanding your options, and getting proper advice gives you the best chance of managing the change without it becoming a crisis.
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