If you took out a two, three or five-year fixed mortgage a few years ago, 2026 could be an important year for you.
Around 1.8 million homeowners are coming to the end of fixed-rate deals taken out in 2021, 2022 and 20231. As those deals expire, borrowers face a decision about what happens next and doing nothing may not always be the best outcome.
What Happens When Your Fixed Deal Ends
When a fixed-rate mortgage comes to an end, most borrowers are automatically moved onto their lender’s standard variable rate.
Standard variable rates are typically higher than fixed or tracker rates and can change at any time. This means monthly payments may increase, sometimes significantly, if no action is taken. With a large number of fixed-rate deals ending during 2026, many households will be reviewing their mortgage for the first time in several years.
Mortgage Rates Are Lower Than Last Year
The good news is that mortgage rates have eased compared with early 2025.
Average two- and five-year fixed rates were around 4.55%, down from 5.25% a year ago2. In some cases, lower rates are available for borrowers with lower loan-to-value ratios, although fees and eligibility criteria vary.
This improvement reflects a reduction in the Bank of England base rate in late 2025, as well as increased competition between lenders3. While rates remain higher than the very low levels seen during the pandemic, the overall trend has been more positive.
Choosing Your Next Step
If your mortgage deal is ending this year, you may be considering whether to secure a new fixed rate or explore other options.
Some borrowers value the certainty of fixed monthly payments, particularly when household budgets are tight. Others may prefer more flexibility, depending on their circumstances and future plans.
Future interest rates are uncertain and influenced by a range of economic factors. While further base rate changes are possible, there is no guarantee that mortgage rates will fall further, or that waiting will lead to better options.
The most suitable choice will depend on your individual situation, including your income, outgoings, future plans and attitude to risk.
Why Reviewing Early Can Help
Many lenders allow borrowers to secure a new deal several months before their current one ends.
Reviewing your options early can help you understand what is available and avoid moving onto a higher variable rate unexpectedly. It also gives you time to consider fees, affordability and how different mortgage types could affect your monthly payments.
The Key Message for Homeowners
If your fixed-rate mortgage is ending in 2026, this is a sensible time to review your position.
Mortgage rates have improved, choice has increased and there may be options available that better suit your needs. However, mortgage decisions are personal, and there is no single solution that works for everyone.
References:
- International Business Times UK. (2026). 1.8 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 Centre Available 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].
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All the information in this article is correct as of the publish date 29th January 2026. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
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