Is Your Fixed Rate Mortgage Up For Renewal?

283,000 fixed-rate mortgage deals are coming up for renewal this quarter

In the coming two years, many homeowners who secured fixed-rate mortgages during the period of historically low interest rates are facing significant increases in their monthly payments. According to the Bank of England’s latest Financial Stability Report, around 400,000 mortgage holders could see their payments increase considerably.

Understanding the Impact
Currently, one-third of all UK mortgage holders, equating to more than three million people, enjoy rates of less than 3%. These rates were locked in before the series of rate hikes initiated by the Bank of England in late 2021.

As these fixed-rate deals begin to expire—with the majority set to end before the close of 2026—affected homeowners will need to brace for potentially steep rises in their monthly expenses.

For most, this will translate to an average increase of about £180 per month, or roughly 28%. However, approximately 400,000 households could experience hikes of 50% or more.

What’s Happening Now?
Looking specifically at the third quarter of 2024, industry data reveals that 283,289 fixed-rate mortgage deals are scheduled for renewal. This includes:

17,768 deals with rates below 2%
154,052 deals with rates between 2% and 2.5%
111,469 deals with rates above 2.5%

This scenario underscores the importance of preparing for changes in your mortgage payments well in advance. This is particularly significant if you have a fixed deal coming to an end within 6 months.

Get In Touch Today
Our team is ready to provide you with tailored advice and support to help you navigate your mortgage options effectively. Get in touch now on 0208 364 3444 alternatively click here to schedule a free consultation call.