MORTGAGE Remortgaging in 2026: What You Need to Know
Around 1.8 million fixed-rate deals expire this year. If yours is one of them, here's how to avoid payment shock — and find a better rate on the open market.
Key Takeaways
- 11.8 million fixed-rate mortgages expire in 2026 — start looking 6 months before your deal ends
- 2Avoid the SVR at all costs: it averages 6.33% vs. around 4.3% for best-buy fixed rates
- 3Compare product transfers with open market rates — open market is often 0.2%–0.5% cheaper
- 4A short 2-year fix is a popular middle ground if you think rates will fall further
- 5Extend your term, overpay to hit a lower LTV band, or lock in early for free rate insurance
The Big Picture
According to UK Finance, approximately 1.8 million fixed-rate mortgages are set to expire during 2026. Many of these borrowers locked in ultra-low rates during the pandemic — some below 2% — and are now facing a significant jump in repayments.
1.8m
Deals expiring
~£300
Avg. monthly rise
6 months
Start looking early
What Is Payment Shock?
If you fixed at around 1.5%–2% during 2020–2021, your new rate will likely be between 4.5% and 5.5%. On a typical £200,000 mortgage over 25 years, that's the difference between paying around £800/month and over £1,100/month — a jump of roughly £300+ per month.
Example: £200,000 mortgage, 25-year term
Old rate (1.8%)
£822
per month
New rate (~4.9%)
£1,151
per month
Illustrative figures. Your actual payment depends on your balance, term, and rate.
When Should You Start Looking?
The short answer: six months before your current deal ends. Most lenders let you lock in a new rate up to six months ahead without obligation. If rates fall further before completion, you can often switch to the lower rate.
6 months out
Start comparing rates. Lock in a deal if you find a good one. There's no commitment until completion.
3 months out
If you haven't started, begin now. Processing times can stretch during busy periods, and 2026 will be very busy.
After your deal ends
You'll be moved onto your lender's Standard Variable Rate (SVR), currently averaging 7.27%. Avoid this at all costs.
Product Transfer vs. Open Market: Which Is Better?
When your deal ends, you have two main options. Both have advantages, and the right choice depends on your circumstances.
Product Transfer (staying with your lender)
- No affordability checks or valuation required
- Quick and simple — can often be done online
- No solicitor or legal fees
- Limited to your current lender's products — may not be the best rate available
Open Market (switching lender)
- Access to the full market — often better rates and cashback deals
- Can renegotiate loan amount, term, or overpayment allowances
- Requires new affordability checks and property valuation
- Involves solicitor fees (though many lenders offer free legals)
A mortgage broker can compare both options for you side-by-side. In many cases, the open market rate is 0.2%–0.5% lower, which on a £200,000 mortgage could save you £200–£500 per year.
Current Remortgage Rates
Rates have been trending downwards since late 2024. If you're remortgaging with reasonable equity (75% LTV or below), you'll have access to the most competitive deals. The Bank of England base rate is currently at 3.75%, with further cuts expected.
5.99%
2-yr fix (60% LTV)
3.79%
5-yr fix (60% LTV)
6.33%
SVR (avoid)
Best-buy remortgage rates as of early February 2026. Source: Moneyfacts, Which?
Compare Your Current vs. New Rate
Use the calculator below to see what your new monthly payment might look like. Set the property price to your current home value, the deposit to your current equity, and try different rates to compare what you're paying now vs. what you'd pay on a new deal.
Should You Fix or Go Variable?
With further base rate cuts expected in 2026, tracker and variable rates are tempting. But there's a trade-off:
Fixed rate
Certainty over your payments for 2–5 years. You won't benefit if rates fall further, but you're protected if they rise. Best for budgeting and peace of mind.
Tracker / variable rate
Your rate moves with the base rate. If further cuts come, your payments fall automatically. But if rates stall or rise, so do your payments. Suits those comfortable with some uncertainty.
Short fix (2-year)
A middle ground: lock in for a shorter period, then reassess once the rate environment is clearer. Popular choice for borrowers who think rates will be lower by 2028.
6 Ways to Reduce the Impact of Higher Rates
Extend your mortgage term
Going from 20 years remaining to 25 or 30 reduces monthly payments significantly. You'll pay more interest overall, but it eases the monthly burden. You can always overpay later to shorten it again.
Make an overpayment before remortgaging
If you have savings, reducing your balance before the new deal starts means a smaller loan and potentially a better LTV band — unlocking lower rates.
Check your LTV band
Rates drop at key LTV thresholds: 90%, 80%, 75%, and 60%. If you're close to a threshold, a small overpayment could drop you into a cheaper bracket.
Shop the whole market
Don't just accept your lender's product transfer offer. Use a broker to compare the full market — the difference can be 0.2%–0.5%, saving hundreds per year.
Consider the total cost, not just the rate
A slightly higher rate with no product fee can work out cheaper overall than a low rate with a £999 fee — especially on smaller mortgages or shorter fixes.
Lock in early and watch for drops
Secure a rate 6 months ahead. If rates improve before your deal starts, most brokers will switch you to the better product at no cost. It's free insurance.
What If You Can't Afford the New Payments?
If the rate jump means you're struggling, don't wait until you miss a payment. There are options:
Support options available:
- Extend the term — Stretching from 20 to 30 years can reduce payments by £200+/month. You can shorten it again later.
- Switch to interest-only temporarily — Some lenders allow a period of interest-only payments to ease short-term pressure. This is a last resort as you're not reducing your balance.
- Talk to your lender — Under FCA rules, lenders must offer support to borrowers in difficulty. Contact them early — they'd rather help you than deal with arrears.
- Get free debt advice — StepChange and Citizens Advice offer free, confidential help if you're worried about meeting mortgage payments.
Your Remortgage Checklist
Follow these steps to make sure you're getting the best deal and nothing slips through the cracks:
Check your deal end date — find this on your last annual statement or online account.
Note your current balance and property value — these determine your LTV ratio.
Check for early repayment charges (ERCs) — switching before your deal ends usually incurs a penalty (1%–5% of the balance).
Compare your lender's product transfer with the open market — use a broker to check both.
Factor in all costs — product fees, valuation fees, legal fees, and any cashback offers.
Lock in your new rate — then relax knowing your payments are sorted before the switchover date.
The Bottom Line
If your fixed rate is ending in 2026, the single most important thing you can do is start early. Six months ahead gives you time to compare the market, lock in a rate, and avoid being dumped onto your lender's SVR at 7%+.
Yes, rates are higher than your pandemic-era deal. But they're falling, competition among lenders is fierce, and there are more options than ever. Use the calculator above to model your new payments, compare product transfer vs. open market rates, and speak to a broker if you want expert guidance.
Ready to compare your options?
Use our full mortgage calculator for detailed amortisation schedules, rate-rise scenarios, and shareable results.