Mortgage Deal Ending in 2026? How to Cope with Higher Payments (UK)

Is your 5-year mortgage deal ending in 2026? Your payments could be about to jump.

On average, if you owe £300,000, your mortgage could cost you
around £6,000 more per year when you remortgage — that’s roughly
£500 extra every month.

I’m Muhammad, a mortgage broker with over 10 years’ experience.
In this video, I want to share some practical strategies to help you cope if your monthly payments
are going up and you’re worried you might not be able to afford them.

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Step 1: Stress-test your budget

First, see whether you can actually cope with the increase.

Try putting £500 aside every month now and see how it feels.
If that’s difficult, look at your spending. There may be discretionary costs you can reduce — for example:

• Entertainment
• Eating out
• Subscriptions
• Gambling

Cutting back here can help cushion the higher payment.

Step 2: Look for ways to increase income

If trimming expenses isn’t enough, see whether you can make extra money — overtime, side income, or other options.
If neither cutting costs nor increasing income works, that’s when you need to look at mortgage strategies.

Step 3: Extend your mortgage term

If your current term is 20 years, you might extend it to 25 years.

• This lowers your monthly payment
• But remember: the goal is still to pay off your mortgage as soon as possible

This option helps cash flow, but it’s not for everyone.

Step 4: Consider interest-only (with caution)

An interest-only mortgage means you’re not paying down the loan — just the interest.

So if your mortgage is £300,000 today, it could still be £300,000 at the end of the term.

It’s not ideal, but it can help if you truly can’t afford repayments.
This is best discussed with an advisor.

Step 5: Part interest-only, part repayment

You can split your mortgage:

• Part on repayment
• Part on interest-only

This reduces your monthly payment while still paying down some of the balance.

Step 6: Use savings to reduce the mortgage

If you have savings, consider putting them into your mortgage.

• This lowers the balance
• Which lowers your monthly payment

Many people keep money in ISAs or bank accounts earning less interest than their mortgage costs them.
In that case, using savings to reduce your mortgage can make more financial sense.

Step 7: Look at an offset mortgage

If you have spare cash, an offset mortgage lets your savings reduce the interest you pay.

I’ve done this for clients recently and it’s worked very well — especially where savings were sitting in low-interest accounts.

Step 8: Review other assets

If you own buy-to-lets (B2Ls) that aren’t performing well, it might make sense to sell part of the portfolio and use the funds to support your main home mortgage.

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Don’t wait too long

If you’re struggling:

• Speak to an advisor early
• Don’t wait until you miss payments
• Late payments damage your credit file

That affects your ability to borrow in the future.

Need help?

If you’re worried about anything I’ve mentioned, feel free to contact us:

Phone: 0203 198 1986

And if you want to pay your mortgage off much faster, check out my other video with practical tips on becoming mortgage-free sooner.

Thanks very much for watching.