The 2026 Mortgage Reset: An Expert Guide to Surviving the Jump from Pandemic Rates to Today’s Reality

TLDR – Quick Summery

• Around 1.8 million UK homeowners will come off low fixed rates in 2026
• Many moving from ~1% to ~4% or higher
• Payment shock can be softened with planning
• Stress testing, rate locking and restructuring are key
• WIS combines mortgage advice with in-house accountants to uncover hidden affordability
• Acting early helps avoid SVR of ~7%
• Download the Payment Shock Survival Guide

Watch: How to Prepare for the Mortgage Reset

The Big Shift Happening Now

Across the UK, borrowers are entering a new phase.

Many fixed their mortgages during the Covid period when rates hovered around 1% to 1.5%.

I remember fixing a deal for David at 1.2% for five years. At the time it felt extraordinary.

Now, like many others, he’s facing rates closer to 4%.

That shift is what I call the 2026 Mortgage Reset.

What Payment Shock Really Means

Payment shock is not just a financial adjustment.
It’s a lifestyle adjustment.

Households built habits around low payments. Disposable income increased. Spending quietly expanded – subscriptions, holidays, deliveries, lifestyle upgrades.

When payments rise, those habits suddenly matter.

Visualising the Shock

This is why planning matters.

A Real Client Strategy: David’s Plan

We began planning six months before renewal.
Instead of reacting, we prepared.

Stress Testing with a Resilience Formula

We use a simple framework:

If David’s payment rises from £1,000 to £1,500:
He needed to simulate a £500 increase.

This gives clarity before the change happens.

Term Extension

David’s remaining term was 22 years. We explored extending to 26 years within age limits to ease monthly pressure.

Part Interest-Only Structure

Full interest-only wasn’t suitable.
But combining repayment and interest-only reduced payments while maintaining progress.

Offset Review

We assessed offset using savings. Not ideal for him, but powerful for borrowers with strong reserves.

Variable Rate Discussion

With inflation easing, we discussed whether short-term flexibility made sense, recognising risks.

Product Transfer vs Remortgage

Product Transfer

• Quick
• Minimal admin
• May not be cheapest

Remortgage

• Wider market access
• More flexibility
• Requires underwriting

An adviser ensures you compare both properly.

The Dual-Qualified Advantage: Mortgage Advice + Accountants

Most brokers stop at the mortgage application.
Because WIS has accountants in-house, we go further.

We can review:

• Your P60 or SA302
• Dividends and director income
• Household cash flow
• Spending patterns
• Tax efficiency

This often reveals “hidden affordability” that improves options.
Sometimes the solution is not just a new rate — it’s better financial positioning.

Cost Control: The Quiet Strategy That Works

Over the low-rate years, spending drifted upward.
We regularly see duplication in:

• Streaming services
• Delivery apps like Deliveroo or Just Eat
• Utility contracts
• Insurance policies
• Lifestyle subscriptions

One client reduced takeaway frequency and freed up hundreds monthly — enough to offset part of the payment rise.

Preparation is behavioural as much as financial.

Why Early Rate Locking Is Essential

Most lenders allow securing a new deal up to six months early.
This protects you from rate increases while keeping flexibility.

Waiting reduces options.

What If You’re Struggling?

Temporary arrangements such as short-term interest-only may be available.
But these are typically short-term tools.

Planning early is always better.

Avoid the SVR Trap

Doing nothing can mean reverting to Standard Variable Rate — often significantly higher.
This is rarely the best path.

Download the Enhanced Payment Shock Survival Guide

Calculator: Remortgage Saving Calculator

Suggested links:

• Remortgage Explained – Your Complete UK Guide
• Our brands
• Contact Us

What’s Inside (Including Exclusive Tools)

The Golden Nugget: Lender Script

When calling your lender, say:

1. “Can you confirm your retention rates versus the best market rates available?”
2. “What options do I have if I secure a deal early?”
3. “Are there any fees or incentives for switching internally?”

The 6-Month Rate Lock Calendar

• Month 6: Review mortgage
• Month 5: Gather documents
• Month 4: Speak to adviser
• Month 3: Compare options
• Month 2: Secure rate
• Month 1: Final checks

Also Included:

• Budget checklist
• Stress test worksheet
• Strategy comparison
• Action timeline

Download

What do I do next?

If your deal ends within the next year:
Book a Rate Lock Strategy Call with WIS Mortgages today and get a clear plan before costs increase.

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

About the Author

Ifthikar Mohamed is a mortgage adviser and director at WIS Mortgages and WIS Accountancy.

As both a lending specialist and accountant, he helps clients navigate rising rates by combining mortgage strategy with financial insight — reviewing income, tax position and household spending to build resilient plans.

His dual perspective allows clients to not only secure the right mortgage but also uncover practical ways to improve affordability and reduce financial pressure.

FAQ

What is the 2026 Mortgage Reset?

A period when many borrowers come off ultra-low fixed rates and face higher payments.

How early should I prepare?

Ideally six months before your deal ends.

Can accountants help with mortgage planning?

Yes, understanding income structure can improve affordability.

Is payment shock unavoidable?

Not entirely, planning can soften the impact.

What happens if I do nothing?

Your mortgage may revert to a higher SVR.

FCA Warnings:

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