Mortgage pricing has been moving quickly. Several major lenders, including Barclays, Nationwide and Halifax, have raised fixed rates in recent weeks, and the average two-year fix is now at its highest level since June 2024, with five-year fixes at their highest since September 2023. For someone remortgaging a typical £200,000 repayment loan, even a modest rate rise can add close to £50 a month — around £600 a year. That’s a real squeeze, not an abstraction.
The good news is that this situation — stressful as it is — has a fairly clear decision path. You don’t need to predict where rates go next. You need to know what to check, when to check it, and who to call if the numbers don’t add up.
Why Rates Are Climbing Right Now
Mortgage lenders don’t set fixed rates in a vacuum. They price them largely off swap rates — wholesale borrowing costs that rise and fall with expectations about inflation and the broader economy. When global events push up energy and fuel costs, inflation expectations rise, swap rates follow, and lenders pass that cost on to borrowers fairly quickly. Mortgage technical specialists have noted that further increases are possible while markets remain unsettled, which is exactly why waiting for a "better moment" can backfire.
This doesn’t mean rates will keep rising indefinitely — nobody can say that with confidence. It simply means timing matters more than usual, because deals can be withdrawn from the market with little warning.
The Three Practical Paths
When your fixed deal is ending, you generally have three broad routes, and they’re not mutually exclusive — you might start one and switch to another as your circumstances become clearer.
1. Act early and lock in a new deal. If you’re within six months of your fixed rate ending, you may be able to secure a new rate now, before further rises happen, while usually still being allowed to switch to something better if conditions improve before your new term starts.
2. Compare and remortgage. Rather than defaulting to your current lender’s offer, it’s worth checking whether switching lenders could get you a better rate — though be aware that leaving a deal early can trigger exit charges, and a new lender may have its own setup fees.
3. Contact your lender for support if the new payment looks unaffordable. This is for when the numbers genuinely don’t work, not a first resort.
Short-Term Relief vs Long-Term Cost
It’s tempting to reach for whichever option lowers next month’s bill the most. But a smaller payment now doesn’t always mean a smaller total bill later — interest keeps accruing, sometimes for longer, so the overall cost of the mortgage can actually rise. This is worth sitting with before deciding.
| Option | Effect on monthly payment | Effect on long-term cost | When it tends to make sense |
|---|---|---|---|
| Lock in a new deal early (up to 6 months ahead) | Secures a known rate, avoids last-minute surprises | Depends on the rate you lock, not a relief measure itself | You’re approaching the end of your fixed term and want certainty |
| Remortgage/switch lender | May lower payment if a cheaper deal is found | Could reduce cost, but exit and setup fees may apply | You’ve compared deals and the savings outweigh fees |
| Temporary interest-only switch | Lowers payment for a set period (often 6 months) | Total interest paid over the mortgage’s life typically rises | Short-term cash-flow squeeze, not a permanent fix |
| Extend the mortgage term | Lowers monthly payment by spreading the loan further | Usually increases total interest paid | Payment shock feels unmanageable, and you accept slower payoff |
| Contact lender for tailored support | Varies — may include payment deferral or part-interest arrangements | Usually increases overall cost; details depend on the arrangement | You’re genuinely worried about keeping up, before or after missing payments |
No option here is universally "best" — what suits a household with ten years left on the mortgage differs from one five years from the end, and your own circumstances, equity, and plans matter more than any general rule.
What the Mortgage Charter Actually Offers
Much of this flexibility comes from the Mortgage Charter, an agreement between the UK’s largest lenders, the Financial Conduct Authority and the government. It applies specifically to regulated residential mortgages — not buy-to-let loans. For borrowers who are up to date with payments, it allows locking in a new deal up to six months before the fixed term ends without a fresh affordability check, and it permits switching to interest-only for six months or extending the term, with the option to revert within six months, again without a new affordability check in most cases. Not every lender is signed up, and the options available can still depend on individual checks — for example, extending a term beyond expected retirement age usually does require a fresh assessment.
If you’ve already missed a payment, Citizens Advice is direct about this: act quickly, because lenders can pursue court action, including repossession, if they believe you aren’t addressing the debt.
Before You Call: What to Have Ready
flowchart TD A[Check your fixed-rate end date] --> B[Gather income, spending, loan documents] B --> C[Compare new deals or use a broker] C --> D[Contact lender or broker early] D --> E[Confirm your chosen option before deadline]
Walking into a conversation with your lender prepared makes it faster and less stressful. Have your current balance, remaining term, and a simple household budget on hand — what’s coming in, what’s going out. Know your fixed-rate end date precisely; Citizens Advice recommends checking this and asking your lender what they’ll offer a few months before it arrives. Contacting a lender to ask about options does not affect your credit file.
The Bottom Line
Rising repayments are unsettling, but they’re rarely a crisis with no response. The reader’s real power here is timing: checking early, comparing genuinely available deals, and speaking to your lender the moment a new payment looks unworkable — not after the deadline has passed. No single path suits everyone, and this is general information, not personal advice. If arrears have already built up or you’re worried about losing your home, getting specialist debt advice quickly matters more than any single Charter protection.
