Remortgage Shock: Why Some UK Homeowners Could Be Hit Twice

Many UK homeowners secured mortgages during a period of record-low interest rates. In 2020 and 2021, borrowers with strong deposits could obtain five-year fixed mortgage deals close to 1%.

Those deals are now coming to an end. Industry estimates from UK Finance suggest that around 1.8 million UK homeowners will come off five-year fixed mortgage deals this year. As they review their options in March 2026, many are finding a mortgage market that has shifted significantly.

For some borrowers, this change could feel like being hit twice financially.

TLDR: The 2026 Mortgage Landscape

• 1.8 million homeowners are expected to exit five-year fixed deals this year.
• Many are moving from rates near 1% to current market averages of around 4% or higher.
• Market Volatility: Recent movements in SONIA swap rates (driven by global uncertainty in early 2026) are causing lenders to reprice deals quickly.
• Early Action: Most lenders allow you to secure a new rate six months before your current deal expires.

Featured Snippet: What Happens When a 1% Mortgage Ends?

When a five-year fixed mortgage at ~1% ends, borrowers typically must remortgage to a new deal or move onto the lender’s Standard Variable Rate (SVR), which currently averages around 7%. To avoid a significant jump in monthly costs, mortgage advisers recommend reviewing your options six months before your deal expires to lock in a rate and protect against further market volatility.

Why Borrowers Could Feel the Impact Twice

Homeowners coming off ultra-low deals face a “double hit” in 2026:

1. The Interest Rate Gap: The difference between a 1% deal and a 4%+ deal can add hundreds of pounds to a monthly budget.
   • Related Article: The 2026 Mortgage Reset: An Expert Guide to Surviving the Jump from Pandemic Rates to Today’s Reality
2. Market Uncertainty: In March 2026, global tensions have caused a spike in energy prices and inflation fears. This has led many lenders, including HSBC, Santander, and Coventry Building Society, to pause rate cuts or even increase their fixed-rate products.
   • Recommended Read: Middle East Conflict and UK Mortgage Rates: What Borrowers Should Consider in March 2026

The First Impact: Higher Monthly Repayments

During the low-rate period, a £200,000 mortgage at 1% cost roughly £754 per month. At a 2026 rate of 4.5%, that same mortgage could jump to £1,112, an increase of £358 every month. This reduction in disposable income is the first major hurdle for households.

The Second Impact: Volatile Lending Criteria

Mortgage rates are influenced by SONIA swap rates. In the last month, these have reached a 30-day high. When markets are volatile, lenders adjust their “stress tests,” which can:

• Reduce the total amount you are allowed to borrow.
• Tighten eligibility for certain products.
• Result in deals being pulled from the market with very little notice.

Helping Homeowners in London, Hertfordshire, and Across the UK

At WIS Mortgages, we support homeowners reviewing their mortgage options across London, Buckinghamshire, Surrey, Kent, Hertfordshire, and throughout the UK.

Many of our clients today are transitioning from those 2021 ultra-low rates. We help bridge that gap by:

• Reviewing remortgage options up to six months before your deal expires.
• Comparing deals across a comprehensive panel of lenders to find the most competitive rates.
• Analysing Product Transfers to see if staying with your current lender is more cost-effective.
• Navigating Volatility: Helping you understand how the latest SONIA swap rate movements affect your specific application.

Should You Start the Remortgage Process Early?

Most lenders allow you to secure a rate up to six months in advance. This “safety net” is vital in 2026. If you lock in a rate now and market rates fall before your start date, your adviser can often switch you to the lower rate. However, if rates rise, you are protected.

• Background Guide: Remortgaging in 2025: Is It the Right Time to Switch? | WIS Mortgages

The Product Transfer Window

Be aware that “Product Transfers” (staying with your current lender) often have a shorter window, typically three months. By speaking to an adviser at the six-month mark, you can compare the entire market first, giving you more leverage and choice.

Expert Insight

Ifthikar Mohamed, Director at WIS Mortgages, explains:

“The 2026 mortgage market is defined by resilience but also by rapid change. With 1.8 million people remortgaging this year, the demand for competitive products is high. Securing an offer 180 days out is the best way to manage your household’s financial future.”

FAQ

How early can I remortgage in 2026?

Most UK lenders allow applications up to six months before your current fixed term ends.

What is the current Bank of England Base Rate?

As of March 2026, the Base Rate is 3.75%, though fixed rates are determined more by “swap rates” which reflect future economic expectations.

What happens if I don’t remortgage?

You will revert to your lender’s Standard Variable Rate (SVR). In 2026, these are often 6.75% to 7.25%, which is significantly higher than most fixed-rate deals.

Contact WIS Mortgages

If your mortgage deal ends within the next six months, don’t wait for the “shock” to arrive.

Call 020 3011 1986 to speak with a qualified WIS Mortgages adviser today.

FCA Warning:

Your home may be repossessed if you do not keep up repayments on your mortgage.