Mortgage prices ‘shock’ for nearly a million as fixed-rate deal ends

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Your help makes all of the distinction. Learn extra Almost a million householders face a major monetary adjustment in 2026 as their five-year fixed-rate mortgages, possible secured at ultra-low charges, are due for renewal.

Based on knowledge from the Monetary Conduct Authority (FCA), obtained by comparability web site Examine the Market by way of a freedom of data request, 971,105 such merchandise have been opened in 2021. This determine highlights a possible shock for a lot of households.

The full doesn't account for mortgages paid off early.

In 2021, sub-2% five-year charges have been broadly obtainable within the low rate of interest surroundings. Mortgage charges later jumped, however have been edging down extra lately, with the Financial institution of England chopping the bottom charge by 0.25 share factors to three.75% in December.

Based on knowledge from L&C Mortgages, the typical of the bottom remortgage five-year fastened charges throughout the ten largest mortgage lenders was 3.89% in January 2026.

<img src="https://static.independent.co.uk/2026/01/26/00/66e6dfc6bedb524fce2d5de6c78c3b49Y29udGVudHNlYXJjaGFwaSwxNzY5MjY3ODUy-2.38488394.jpg" srcset="https://static.independent.co.uk/2026/01/26/00/66e6dfc6bedb524fce2d5de6c78c3b49Y29udGVudHNlYXJjaGFwaSwxNzY5MjY3ODUy-2.38488394.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/01/26/00/66e6dfc6bedb524fce2d5de6c78c3b49Y29udGVudHNlYXJjaGFwaSwxNzY5MjY3ODUy-2.38488394.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Borrowers letting their five-year mortgage roll onto a standard variable rate this year could see particularly big cost jumps (Joe Giddens/PA)" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Debtors letting their five-year mortgage roll onto a regular variable charge this yr might see significantly huge value jumps (Joe Giddens/PA) (PA Archive) Calculations by Examine the Market point out that extra expensive charges might probably push up some households’ annual mortgage funds by as a lot as £2,124, primarily based on common home costs in 2021 and somebody having had a 25% deposit in 2021.

Debtors letting their five-year mortgage roll onto a regular variable charge (SVR), which occurs when preliminary mortgage offers finish, might see larger value jumps.

Sajni Shah, a mortgage professional at Examine the Market, stated many households “might be shocked” to see their repayments soar, including that when householders are testing their remortgage choices “even small variations in charges can add as much as 1000's over the lifetime of a time period, so buying round, evaluating lenders and locking in a aggressive charge might make an enormous distinction in preserving rises to a minimal”.

Debtors might want to issue within the total value of the mortgage, together with charges, in addition to the speed.

David Hollingworth, affiliate director at L&C Mortgages, stated: “Householders that locked in a super-low charge 5 years in the past have been sheltered from the ups and downs in rates of interest in recent times.

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“Though a hike in funds is inevitable as soon as the repair ends, the excellent news is that mortgage charges have improved considerably lately and are a lot decrease than on the peak.

“That may assist to restrict the rise, nevertheless it makes buying round for the very best deal much more very important. Beginning the method a number of months upfront will assist debtors put together for increased charges and allow a easy transition to a brand new deal.”

The FCA’s product gross sales knowledge covers regulated mortgages solely, sometimes comprising owner-occupier mortgages.

Purchase-to-let and business mortgages are unregulated merchandise, for which the FCA doesn't acquire equal knowledge.

A spokesperson for UK Finance stated: “Round 1.8 million households are because of come off fastened charge offers this yr, and we count on round half of those to be five-year fixes.

“The mortgage market is aggressive with a variety of choices obtainable, and we encourage individuals to buy round or communicate to a dealer about what's finest for his or her circumstances.

“If anybody is fearful about their mortgage cost your lender is right here to assist. The sooner you contact your lender, the extra choices they'll have obtainable and the earlier they are going to be in a position that can assist you.”