Get Ahead of Your Mortgage Before It Catches You Out

More than five million households are set to face higher mortgage repayments by the end of 2028, according to the Bank of England.1 If your fixed deal is coming to an end, starting the conversation early gives you more time, more options and a lot more certainty. 

The Bank now expects a little over five million households to see their repayments rise by the end of 2028, up from nearly four million in its previous forecast back in December 2025.  

For a lot of borrowers, the rise will be manageable. The Bank projects that the typical owner-occupier coming off a fixed rate in the next two years could see their monthly payment go up by around £45.  

But averages hide the bigger picture for some households. 

Nearly 750,000 borrowers currently paying an interest rate below 3 per cent are due to come off their fixed deals during 2026, and the Bank expects this group to see an average increase of around £170 a month.  That’s roughly £2,040 a year added to the average household’s mortgage costs. 

Why are more people facing bigger increases? 

The cost of new fixed rate mortgages depends on several things, including where the market expects interest rates to go and what it costs lenders to fund mortgages in the first place. 

At the time of the Bank of England’s July report, the average quoted rate for a two year fixed mortgage at 75 per cent loan to value was 4.92 per cent, up 0.72 percentage points on December.  The average two year rate at 90 per cent loan to value had climbed to 5.32 per cent.  

Mortgage pricing moves before the Bank of England even makes its next decision on Bank Rate. Lenders adjust their products constantly in response to wholesale funding markets (where lenders borrow their money from) and their own expectations about where rates are heading.2 In other words, waiting for the next Bank announcement won’t necessarily get you a clearer or cheaper deal. 

Why speak to us six months before your deal ends? 

Too many homeowners leave their remortgage until the final few weeks of their existing deal. That’s leaving it far too late. 

Starting around six months out gives us time to look at what’s available, spot any potential problems, and get an application ready before your current rate runs out. MoneyHelper recommends beginning the switching process about six months before your deal ends, and we agree completely.3 

There are a few solid reasons this early start matters. 

You could lock in a rate in advance 

Many lenders let eligible customers reserve a new deal several months before their current fixed rate ends, giving you some real certainty about the rate and payment you’ll be moving to. 

Under the Mortgage Charter, signatory lenders have committed to letting customers lock in a new deal up to six months before their fixed rate period ends. If a better priced deal becomes available from the same lender before your new one starts, eligible customers can request it and this is something we monitor for you.4 

That said, availability and switching arrangements differ between lenders, and fees may apply or be non-refundable in some cases, so this needs checking properly rather than assumed. 

When your fixed deal ends, you’ll usually have two options: take a new product from your existing lender, known as a product transfer, or remortgage to a different lender.  

Staying with the same lender can feel that it is simpler, and may avoid a fresh valuation or full affordability check, but that doesn’t automatically mean it’s the most suitable deal available to you. Moving to a new lender could get you a better rate, fee structure or set of features, though it usually means a new application, valuation, affordability check and legal work. 

This is exactly where we come in. We compare what’s actually available, looking at interest rate, arrangement fees, incentives, early repayment charges and the overall cost, not just the headline number. 

A lower rate doesn’t always mean a cheaper mortgage 

Headline rates can be deceptive on their own. A product with a lower rate might carry a hefty arrangement fee, while a deal with a slightly higher rate and a smaller fee could work out cheaper overall, particularly on a smaller mortgage balance. 

We look at the total cost of each option, not just the rate. The review can also take into account whether your mortgage term still makes sense, whether your property’s value has changed, whether you’ve moved into a lower loan to value band, whether overpayments have reduced your balance, changes to your income or employment, any plans to move, the need for payment flexibility, and any early repayment charges. All of it can affect which product or lender genuinely suits you. 

What if rates improve after you’ve applied? 

Securing a deal doesn’t have to be the end of the conversation. Depending on the lender, product and stage of your application, it may still be possible to switch to a better priced option before your new mortgage completes. 

We keep an eye on the market and check whether a change is worth considering. Any switch is still subject to lender criteria, product availability and application deadlines, and there’s no guarantee rates will fall further. Equally, holding out for a better deal carries the risk that rates rise instead. Starting early gives you an option in hand while you keep watching the market. 

Don’t drift onto the standard variable rate without checking 

When a fixed or discounted period ends, your mortgage will usually move onto the lender’s standard variable rate unless something else has been arranged. That rate is set by the lender, can change, and is often higher than fixed or tracker rates, though this varies by lender and by market conditions.  

Letting your mortgage slide onto the standard variable rate without a plan can mean paying more than you need to. There are situations where staying on a variable rate makes sense, for example if you’re expecting to repay or move the mortgage soon and want to avoid early repayment charges, but that should be a decision you’ve made deliberately, not something that happened because the review got left too late. 

Worried the new payments won’t be affordable? 

If you think you might struggle with a higher payment, contact your lender as early as possible. 

Support depends on your individual circumstances, and might include a temporary change to your mortgage. Extending the term or moving temporarily to interest only payments can reduce what you pay each month, but it will increase the total amount you repay overall and could mean higher payments later on. 

Under the Mortgage Charter, eligible borrowers who are up to date with payments may be able to switch temporarily to interest only for six months, or extend their term, without a new affordability assessment.4 These options won’t suit everyone, and they do increase the overall cost of the mortgage, so they need proper thought rather than being used as a quick fix. 

We can talk you through what’s available, but if you’re dealing with wider financial difficulty, speak to your lender directly too, and free debt guidance may be worth looking into if household debts have become unmanageable. 

Our honest view 

This isn’t about telling every homeowner to switch lender or grab a new fixed rate immediately. It’s about giving yourself enough time to make a proper, informed decision. 

Starting the conversation six months before your deal ends gives you time to understand your likely new payment, compare your existing lender against the wider market, and factor in any changes to your income, credit history or future plans. It might also mean locking in a rate while you keep your options open. 

If your current mortgage deal is due to end in the next six months, get in touch and we’ll go through what’s available to you.