If you arranged a two, three, or five-year fixed-rate mortgage a few years ago, 2026 is likely to be a significant year for your household finances.
According to data from the International Business Times UK, approximately 1.8 million homeowners are reaching the end of fixed-rate terms that were originally secured in 2021, 2022, and 2023[1]. As these agreements expire, many borrowers will face a choice about their next steps. Doing nothing could lead to higher monthly costs, so it is a good idea to understand your options early.
What Happens When Your Fixed Term Finishes?
When a fixed-rate mortgage deal ends, your lender will typically move you onto their Standard Variable Rate (SVR).
These rates are usually higher than fixed or tracker alternatives and can be changed by the lender at any time. This means your monthly repayments could increase, sometimes by a noticeable amount. Because so many deals are ending this year, many households will be looking at their mortgage options for the first time in quite a while.
The Current State of Mortgage Rates
There is some encouraging news for those looking to remortgage. Mortgage rates have generally eased compared to the start of 2025.
Data from Rightmove indicated that average two and five-year fixed rates were around 4.55%, which is a decrease from 5.25% the previous year[2]. While these rates are still higher than the record lows seen during the pandemic, the trend has become more stable.
This shift is partly due to the Bank of England reducing the base rate in late 2025, alongside lenders[3]becoming more competitive to attract new business.
Selecting Your Next Step
If your current deal is expiring soon, you might be debating between the security of a new fixed rate or the potential flexibility of other products.
- Fixed Rates: These could offer peace of mind by keeping your monthly payments the same for a set period.
- Variable or Tracker Rates: These could offer more flexibility, though your payments could go up or down.
Future interest rates remain uncertain and are affected by various global economic factors. While the Bank of England may make further changes, there is no promise that mortgage rates will drop further or that waiting will result in a better deal.
The most appropriate choice for you will depend on your specific circumstances, including your household income, your future plans, and how you feel about potential rate changes.
Why It Pays to Act Early
Many lenders allow you to secure a new mortgage product several months before your current deal actually expires.
Starting the process early could help you understand exactly what is available to you. It also prevents you from accidentally slipping onto a more expensive variable rate. Taking the time to review now means you can factor in any arrangement fees and ensure the monthly payments still fit comfortably within your budget.
How We Can Help
At Yes Mortgage Services Limited, we work with a comprehensive panel of lenders. We could help you navigate the current market, explain the different types of mortgages available, and help you find a solution that fits your needs.
Would you like us to check when your current deal ends and show you what your new monthly payments could look like? Use the contact us button to arrange a suitable time to discuss your individual needs.
Sources and Disclaimers:
- International Business Times UK. (2026). 8 Million UK Mortgages Expiring in 2026: Why Homeowners Who Locked in Pandemic Rates Could Pay £5,000+ More This Year. Available at: https://www.ibtimes.co.uk/18-million-uk-mortgages-expiring-2026-why-homeowners-who-locked-pandemic-rates-could-pay-1770761[Accessed 26 Jan. 2026].
- Rightmove (2025). Average two-year and five-year fixed mortgage rates now level – Rightmove Press CentreAvailable at: https://www.rightmove.co.uk/press-centre/average-two-year-and-five-year-fixed-mortgage-rates-now-level/ [Accessed 26 Jan. 2026].
- Bank of England (2025). Interest rates and Bank Rate: our latest decision. Available at: https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate [Accessed 26 Jan. 2026].
We do not charge a fee for mortgage advice.
Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
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At Yes Mortgage Services, we offer a comprehensive range of products from across the market.
Irrespective of whether you are looking to buy a new home, re-mortgage an existing property, or looking to protect your family from the unpredictability that life throws at it or protect your income if you are unable to work due to accident or ill health.
Yes Mortgage Services are committed to offering you the highest possible standards of service. We can undertake the whole process from answering the initial questions through to handling multiple product applications. Ensuring that everyone gets treated with the same urgency and maintaining your best interests are our main goals irrespective of the value of the mortgage.
We recognise that both we and our customers have everything to gain if we look after your best interests and treat you fairly in all aspect of our dealings with you.
