| Over 350,000 UK households will face higher payments this winter as low-rate deals from 2020–2023 end | A £200,000 mortgage could rise by £333/month — almost £4,000 extra a year | With the Autumn Budget on 26 Nov, now’s the time to review your mortgage options |
It is estimated that over 350,000 UK households are facing significantly higher mortgage payments this winter, as fixed-rate deals taken out during the era of ultra-low interest rates are set to expire1. These are largely five-year fixes taken out between October 2020 and February 2023, when rates were below 2%.
As borrowers move off these deals, many will be refinanced at current higher fixed rates, resulting in steep payment increases. For example, on a £200,000 mortgage, monthly repayments could jump by around £333 on a fixed rate of 5%, adding nearly £4,000 annually to household budgets. Mortgage borrowers with higher outstanding balances will see even greater hikes.
Reviewing your mortgage strategy matters more than ever to ensure you find the best deal possible to avoid paying more than is necessary. If your fixed-rate deal is ending soon, it is vital to review your options early. We can help you navigate today’s complex market.
1Nous, 2025
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.
