Nearly one million homeowners face a significant financial adjustment in 2026 as their five-year fixed-rate mortgages, likely secured at ultra-low rates, are due for renewal.
According to data from the Financial Conduct Authority (FCA), obtained by comparison website Compare the Market via a freedom of information request, 971,105 such products were opened in 2021. This figure highlights a potential shock for many households.
The total does not account for mortgages paid off early.
In 2021, sub-2% five-year rates were widely available in the low interest rate environment. Mortgage rates later jumped, but have been edging down more recently, with the Bank of England cutting the base rate by 0.25 percentage points to 3.75% in December.
According to data from L&C Mortgages, the average of the lowest remortgage five-year fixed rates across the 10 biggest mortgage lenders was 3.89% in January 2026.
Calculations by Compare the Market indicate that more costly rates could potentially push up some households’ annual mortgage payments by as much as £2,124, based on average house prices in 2021 and someone having had a 25% deposit in 2021.
Borrowers letting their five-year mortgage roll onto a standard variable rate (SVR), which happens when initial mortgage deals end, could see bigger cost jumps.
Sajni Shah, a mortgage expert at Compare the Market, said many households “will be shocked” to see their repayments jump, adding that when homeowners are checking out their remortgage options “even small differences in rates can add up to thousands over the life of a term, so shopping around, comparing lenders and locking in a competitive rate could make a huge difference in keeping rises to a minimum”.
Borrowers will need to factor in the overall cost of the mortgage, including fees, as well as the rate.
David Hollingworth, associate director at L&C Mortgages, said: “Homeowners that locked in a super-low rate five years ago have been sheltered from the ups and downs in interest rates in recent years.
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“Although a hike in payments is inevitable once the fix ends, the good news is that mortgage rates have improved substantially recently and are much lower than at the peak.
“That will help to limit the increase, but it makes shopping around for the best deal even more vital. Starting the process several months in advance will help borrowers prepare for higher rates and enable a smooth transition to a new deal.”
The FCA’s product sales data covers regulated mortgages only, typically comprising owner-occupier mortgages.
Buy-to-let and commercial mortgages are unregulated products, for which the FCA does not collect equivalent data.
A spokesperson for UK Finance said: “Around 1.8 million households are due to come off fixed rate deals this year, and we expect around half of these to be five-year fixes.
“The mortgage market is competitive with a wide range of options available, and we encourage people to shop around or speak to a broker about what is best for their circumstances.
“If anyone is worried about their mortgage payment your lender is here to help. The earlier you contact your lender, the more options they will have available and the sooner they will be able to help you.”
