According to UK Finance, around 1.8 million fixed-rate mortgage deals are due to expire in 2026. Many of those homeowners locked in rates of between 1.5% and 2.5% back in 2021–2022, when borrowing was at historic lows. For a large proportion of them, moving onto a new deal this year will mean a genuinely significant increase in monthly payments — which makes early planning more valuable than it has been in years.
Where rates stand right now
The Bank of England held its base rate at 3.75% at its 30 July 2026 meeting — a close 6–3 vote, with three members pushing for a rise to 4%, a reminder that the direction of travel isn’t fully settled. Against that backdrop:
- The average two-year fixed rate currently sits around 5.62%
- The average five-year fixed rate currently sits around 5.61%
Rates had been easing gradually through the first half of the year, but several major lenders nudged pricing back up in July — a useful reminder that “wait and see” isn’t a strategy, it’s a bet.
If your fixed deal is expiring this year
If your current rate expires within the next six months, most lenders will let you secure a new rate in advance — often three to six months before your existing deal ends — with no obligation to proceed if a better rate becomes available closer to completion. This is, in almost every case, the right move: it protects you against further rate rises while leaving the door open if pricing improves.
The homeowners who come off worst in a rising or uncertain rate environment are consistently the ones who let their deal lapse onto their lender’s standard variable rate (SVR) by default — SVRs run several percentage points above the average fixed rate and offer no protection at all.
What actually moves your remortgage rate
- Loan-to-value — the equity you’ve built up (through repayment or house price growth) directly affects which rate tier you qualify for; even a modest LTV improvement can unlock meaningfully better pricing.
- Credit profile — missed payments, high existing debt, or a recent change in credit usage all affect lender appetite, not just rate.
- Income and affordability changes — self-employment, a career change, or a new dependant since your last mortgage can all affect what you’re able to borrow, independent of the rate itself.
- Property value — a formal or informal revaluation can shift your LTV band in either direction.
First-time buyers: a market that still needs careful navigation
For first-time buyers, affordability remains the central challenge — average fixed rates in the 5.5%–5.6% range, combined with house prices that haven’t meaningfully corrected, mean the deposit and income stretch required is still considerable in many parts of the country. Government schemes, family-assisted deposits, and joint-borrower-sole-proprietor arrangements remain relevant tools worth exploring with a broker rather than assuming they don’t apply to you.
Should you fix for two years or five?
There’s no universally correct answer, but the considerations are consistent:
- Two-year fixes suit those who expect rates to fall meaningfully and want to review sooner, or who anticipate a change in circumstances (moving, changing income) within that window.
- Five-year fixes suit those who prioritise payment certainty and want to avoid remortgaging costs and rate uncertainty twice as often — particularly relevant while the base rate’s direction remains genuinely contested at Bank of England level.
Why remortgaging through a broker matters
Lenders don’t all price the same borrower the same way, and criteria — not just rate — determines what you’re actually eligible for. A broker assesses your full circumstances against the whole of the market (not one lender’s product range), secures a rate in advance where your deal is expiring, and manages the application through to completion, including for more complex cases such as self-employed income, adverse credit history, or unusual property types.
Deal expiring soon, or exploring a first purchase? Speak to our residential mortgage team or request a call back.
Giles Finance is a trading style of Giles Finance & Consultancy Services, authorised and regulated by the Financial Conduct Authority (FRN 726857). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.