Around 1.8 milllon UK homeowners are expected to remortgage in 2026, and many could see their monthly repayments change significantly.

Mortgage rates have generally fallen since early 2025, helped by four Bank of England base-rate cuts, but the impact depends heavily on the type of deal a borrower is leaving.

For anyone approaching the end of a fixed term, the key is to start early, compare the full cost of different products and understand how much equity is now held in the property.

Two-Year Borrowers May See Some Relief

Homeowners coming off a two-year fixed mortgage are in a relatively favourable position compared with those who fixed for longer.

In February 2024, the average two-year fixed mortgage rate stood at 5.56%. By February 2026, that average had fallen to 4.86%. This means some borrowers refinancing after a two-year fix may be able to secure a slightly cheaper rate than before.

The picture is much tougher for borrowers leaving five-year deals. The average five-year fixed rate was only 2.54% in February 2021, compared with 4.97% in February 2026. For this group, higher monthly repayments may be difficult to avoid.

Start Looking Up to Six Months Early

If your fixed deal is due to end within six months, it is worth beginning the search immediately. Many lenders allow borrowers to secure a new mortgage up to six months before their current deal expires.

Waiting too long can be expensive. If no new product is arranged by the end of the fixed period, borrowers usually move automatically onto their lender’s standard variable rate, or SVR.

The average SVR offered by major UK mortgage providers is around 7.15%, significantly above many fixed-rate deals.

Do Not Switch Too Early Without Checking the Costs

Remortgaging in the middle of a fixed term can look attractive if a cheaper rate becomes available, but early repayment charges may wipe out any savings.

Arrangement fees on a new mortgage can add further expense. Before switching early, calculate the total cost rather than comparing headline rates alone.

For borrowers with more than six months left on a fixed deal, staying put is often the better option unless a mortgage adviser finds a clear financial advantage.

Your LTV Could Unlock a Better Rate

Loan-to-value, or LTV, is one of the most important figures when remortgaging. It shows how much of the property’s value is still covered by the mortgage. If you have paid down the balance or your home has increased in value, you may have moved into a lower LTV band and could qualify for a better rate.

Even moving from a 90% LTV deal to an 85% bracket can widen the choice of products available.

Compare Your Current Lender With the Wider Market

Staying with the same lender is known as a product transfer. It can be simpler because it may avoid a new credit check, property valuation or some arrangement fees.

However, convenience does not guarantee the lowest price. Borrowers should still compare offers from other lenders before accepting a new deal.

A mortgage broker can also help identify products that match a borrower’s income, equity level and future plans.

Two Years or Five?

Two-year fixed mortgages are currently often around 0.2 to 0.3 percentage points cheaper than the best five-year options, although this varies by LTV.

A two-year fix offers more flexibility if rates fall further. A five-year deal provides longer-term certainty and protection if borrowing costs rise again.

The right choice therefore depends not only on rates, but also on whether you plan to move home, how predictable you want your repayments to be and how comfortable you are with refinancing again relatively soon.

Look Beyond the Headline Rate

A low mortgage rate can be misleading if it comes with a large upfront fee. Some products charge more than £1,000, while others are fee-free.

For smaller mortgage balances, a slightly higher rate with no arrangement fee can sometimes work out cheaper overall.