If your fixed-rate mortgage is coming to an end in 2026, you are not alone. About 1.8 million of us are in exactly the same boat, and figuring out what to do next can feel a bit daunting.
Interest rates have been on a rollercoaster since late 2021. If you are coming off a five-year fix, you are probably bracing for a jump in your monthly payments. On the flip side, if your two-year deal is wrapping up, you might actually be about to save yourself hundreds of pounds a month.
With more Bank of England base rate cuts expected this year (the next big announcement drops on 5 February), the cost of borrowing could get cheaper. But nobody has a crystal ball. If you want to sort your mortgage out without losing sleep over it, here is your game plan.
Find out what your home is actually worth today
If you haven’t remortgaged in a while, your home has probably gone up in value. This is great news because it means you own a larger chunk of your property outright.
Owning more of your home pushes you into a lower loan-to-value (LTV) band, which unlocks much better, cheaper mortgage deals. Take a quick look at sites like Rightmove or Mouseprice to see what similar houses in your street have sold for recently, or ask your current lender for an estimated valuation.
Whatever you do, dodge the SVR
If you let your current deal expire without setting up a new one, your lender will automatically dump you onto their Standard Variable Rate (SVR).
You want to avoid this at all costs. The average SVR right now is sitting at a painful 7.25%, with some lenders charging even more. To put that into perspective: someone with a £250,000 mortgage could save upwards of £500 a month simply by switching to a 3.65% deal instead of rolling onto the SVR.
The only time it might make sense to stick on the SVR for a bit is if you only have a few months left to pay off your entire mortgage, or if your remaining balance is so small that the £1,000 to £2,000 arrangement fees for a new deal wipe out any savings.
Have a chat with your current lender...
Around three to four months before your deal ends, your current lender will normally send you a letter offering a few options to stay with them.
Doing a "product transfer" with your existing bank is definitely the easiest route. There are far fewer affordability checks, less paperwork, and you usually won't have to pay valuation or legal fees. If you just want it sorted quickly, it is a very solid option.
...But make sure you shop around
Convenience is great, but loyalty doesn't always pay. There are currently over 7,100 different mortgage products on the market in the UK—the highest number we've seen since 2007.
Before you say yes to your current lender, check the best-buy tables on sites like MoneySavingExpert to see if another bank is offering something drastically cheaper. Many new lenders will even throw in free valuations and legal work to win your business.
Get a broker on your side
If looking at interest rates gives you a headache, let a mortgage broker do the heavy lifting. A good broker will look at your specific finances, handle the boring paperwork, and find deals you can't get by walking into a high street bank.
Just make sure you choose a "whole of market" broker, meaning they aren't tied to pushing deals from just one or two banks. Best of all, many massive brokers (like L&C Mortgages) don't charge you a penny in fees, as they make their money directly from the lender.
Fixed rate or tracker?
Fixed rates are sitting at their lowest levels since 2022. Right now, there isn't a massive difference in price between locking in for a short or long time (you are looking at roughly 3.64% for a two-year fix and 3.70% for a five-year fix).
If you want the security of knowing exactly what goes out of your bank account every month, a fix is still the cheapest and safest bet.
However, if you think the Bank of England is going to keep cutting rates, you might be tempted by a tracker mortgage. Trackers follow the base rate, so if rates drop, your monthly bill drops too. Right now, the best trackers sit at about 3.90%. They are slightly more expensive than fixed deals today, but they usually don't have early repayment charges. This makes them incredibly flexible if you plan to move house or pay off a big chunk of your mortgage with a bonus or inheritance.
Use the 6-month safety net
Here is the best trick in the book: remortgage offers are usually valid for up to six months.
If your deal expires in four or five months, you can reserve a cheap rate right now. If interest rates keep dropping before your current deal ends, you aren't tied in—you can just ditch the offer and apply for the new, cheaper rate. But if rates suddenly shoot up, you'll be laughing because you've already locked in a bargain. It's a win-win.
