Homeowners whose fixed-rate mortgage deals expire in early 2026 are being urged to start planning ahead, as a new wave of rate rises and higher payments could be on the horizon.
UK Finance data shows that around 1.6 million fixed-rate mortgage deals are due to end in 2025, with a similarly high number expected to mature in 2026 1 .If you are one of them, it is important to act early to avoid the shock of increased monthly payments and to secure the most suitable deal for your circumstances.
Five-Year Fixes: A Different World in 2021
Many households locked into five-year fixed rates in 2021, when the Bank of England base rate was at an historic low. At that time, borrowers could secure deals below 2 percent, making mortgage repayments relatively affordable. Since then, the landscape has changed dramatically. The Bank of England raised interest rates repeatedly to tackle inflation, pushing its base rate to 5.25 percent in 2024, with mortgage rates following suit 2. If your five-year deal is coming to an end in early 2026, you are likely to face a significant increase in your monthly payment.
Two-Year Fixes: The Turmoil of 2023
If you fixed your mortgage rate for two years in 2023, you may remember that rates were unusually high. This was a direct result of the financial market upheaval caused by the September 2022 mini-budget. Many lenders withdrew products or repriced them, with two-year fixed rates often above 6 percent. If you fixed during this period, you have already been managing higher payments. As your deal nears its end, it is wise to plan early to secure the most suitable next rate, as the market remains volatile and rates are still well above pre-2022 levels.
Three-Year Fixes: Caught in the Middle
Some borrowers opted for three-year fixes in 2022. At the start of that year, rates were relatively low, but they began to rise quickly as the Bank of England increased rates to control inflation. After the mini-budget in September 2022, mortgage rates surged even higher. Borrowers who fixed early in 2022 benefited from better rates, while those who waited faced higher payments 3. If your three-year deal is due to finish in 2026, you should review your options as soon as possible to avoid rolling onto your lender’s standard variable rate, which is usually more expensive.
What Should Homeowners Do Now?
Experts agree that it is not wise to leave your next mortgage decision until the last minute. Most lenders allow you to secure a new deal up to six months before your current rate expires. Acting early can help you lock in a competitive rate and avoid unwelcome surprises if the market changes again. If rates fall before your new deal begins, you may have the option to switch to a better deal.
Here is what you should do:
- Check the end date of your current mortgage deal.
- Speak to your adviser several months before your deal expires.
- Compare the latest rates and products on the market.
- Consider your household budget and whether you need certainty or flexibility in your payments.
Why Early Action Matters
Mortgage rates have risen sharply since 2021 and may not drop significantly in the near future. The Bank of England has indicated that interest rates will remain higher for longer to bring inflation under control. This means many homeowners will see their payments increase, and planning ahead can help you manage your finances and avoid any nasty shocks4.
The Bottom Line
Whether your mortgage was fixed during the bargain rates of 2021, the market chaos of 2023, or the uncertain times of 2022, now is the time to review your options. Acting early could help you secure a more affordable deal and give you peace of mind as you plan for the future.
If you have questions about your mortgage or want to discuss your next steps, contact your adviser as soon as possible.
References:
- UK Finance (2025) Household Finance Review: Q1 2025. Lee Hopley (Director, Economic Insight & Research) and James Tatch (Principal, Head of Analytics). UK Finance, June 2025. Available at: https://www.ukfinance.org.uk/system/files/2025-06/Household%20Finance%20Review%202025%20Q1.pdf [Accessed 23 Jul. 2025].
- The Guardian 2024. Soaring UK mortgage rates have pushed 320,000 adults into poverty, thinktank says. Available at: https://www.theguardian.com/society/article/2024/jul/25/soaring-uk-mortgage-rates-have-pushed-320000-adults-into-poverty-thinktank-says [Accessed 23 Jul. 2025].
- Morningstar UK,, 2022. Lenders withdraw mortgages after mini-budget sparked market turmoil .Available at: https://www.morningstar.co.uk/uk/news/AN_1664217395970258700/lenders-withdraw-mortgages-after-mini-budget-sparked-market-turmoil.aspx [Accessed 23 July 2025].
- MoneyWeek, 2025. Millions of homeowners to see mortgage payments rise. 10 July. Available at: https://moneyweek.com/personal-finance/mortgages/mortgage-payments-rise [Accessed 23 July 2025].
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