Why the jump can be so big
A lot of people fixed when rates were at record lows, at 1% or 2%. Those deals are now running out, and the deals on offer today are much higher. Because the rate applies to the whole balance, even a few percentage points makes a big difference to the monthly payment.
Here's an example. Say you owe £200,000 with 20 years left, on a repayment mortgage.
| Interest rate | Monthly payment | Compared with 1.5% |
|---|---|---|
| 1.5% (a typical low fix from a few years ago) | £965 | |
| 4.5% | £1,265 | £300 more a month |
| 5% | £1,320 | £355 more a month |
| 5.5% | £1,376 | £411 more a month |
| 6% | £1,433 | £468 more a month |
That's up to about £5,600 a year more for exactly the same mortgage. Knowing your number early gives you time to plan for it.
What rates look like right now
Nobody can tell you exactly what rate you'll get in six or twelve months. Rates move with the markets, and your rate will depend on things like how much equity you have, your credit record and any fees you choose. But here's where the market stood in early October 2026, so you have a sensible starting point:
- The average two year fixed rate was 5.98% and the average five year fix had reached 6%, according to Moneyfacts on 5 October 2026. That's the highest in around three years.
- Deals priced below 5% have become rare. Moneyfacts counted just nine on 5 October, down from nearly 1,500 at the start of September.
- Some lenders have since started trimming rates. For example, on 8 October one large building society cut its five year fix at 75% loan to value to 4.97%, with a £1,495 fee.
The lowest rates usually go to people with more equity (a lower loan to value) and often come with a fee. If you have less equity, it's sensible to test your budget at the higher end. That's why we've pre-filled the calculator with 5%, 5.5% and 6%.
Your options when your fix ends
Your lender will write to you before your deal ends, and most will offer you a new rate. That's a good starting point, but it may not be the best deal available, so it's worth comparing it with the wider market. If you do nothing, you'll usually move onto your lender's standard variable rate, which is often much higher than a new fixed deal.
There are two main routes:
Product transfer
A new deal with your current lender
- Usually quicker and simpler
- Often no new affordability check or valuation if nothing else changes
- Usually fewer fees, with no legal work needed
- You only see your current lender's rates, which may not be the best available
- Changes such as extending your term, borrowing more or taking someone off the mortgage may not be possible with a straight switch
Remortgage
Moving your mortgage to a new lender
- You can compare deals across the whole market
- Some deals come with free legal work or a free valuation
- A chance to change your term or borrowing at the same time
- A full application, with an affordability and credit check
- Takes longer, so you need to start earlier
- Can mean more fees, so the rate saving needs to outweigh them
Our product transfer vs remortgage guide goes through the choice in more detail.
When to start looking
Earlier than most people think. Lenders covering about 90% of the mortgage market have signed up to the Mortgage Charter, which lets existing customers lock in a new deal up to six months before their fixed rate ends. A remortgage to a new lender can usually be arranged months in advance too.
You keep paying your current rate until your deal ends, so securing a rate early costs you nothing. And if rates fall before your new deal starts, you can often ask to switch to a cheaper one.
Thinking of extending your term to lower the payment?
It can help, and the calculator above shows you the effect. But you'll pay interest for longer, so the total cost goes up. Not every lender will let you extend your term on a product transfer. Some treat it as a material change and need a full application, and with others you may need to remortgage. Lenders also set maximum terms and age limits, so check before you count on it.
Other ways to soften the jump
- Overpay while your rate is still low. Most lenders let you overpay up to 10% of the balance a year without an early repayment charge, but check your own deal first. Every pound you clear now is a pound you won't pay the higher rate on. Try our overpayment calculator.
- Get your budget ready. If the calculator shows an extra £300 or £400 a month, start putting that amount aside now. It cushions the change and shows you whether the new payment is manageable.
- Look at the whole deal, not just the rate. A low rate with a big fee can cost more than a slightly higher rate with no fee, especially on a smaller balance.
- Talk to someone early. A broker can compare your lender's offer with the wider market, and can tell you whether a product transfer or a remortgage makes more sense for you.
Want real numbers for your situation?
Debbie at DS Financial can compare your lender's offer with the wider market and talk you through product transfer or remortgage. No pressure and no obligation.
Book a free chat with DS FinancialThis page is a guide to help you understand your options. It is general information, not personal financial advice. For advice based on your own circumstances, speak to a qualified mortgage adviser. The calculator gives estimates based on the figures you enter, assumes the rate stays the same for the whole term and does not include fees. Rate figures are as stated at the dates shown and change often. Your home may be repossessed if you do not keep up repayments on your mortgage.
Sources: Moneyfactscompare, average five year fixed rate hits 6% (5 October 2026), The Intermediary, Yorkshire Building Society reduces rates (8 October 2026), FCA, Mortgage Charter uptake.