Around 2.3 million fixed-rate mortgage deals are due to expire in 2027, potentially leaving homeowners facing changes to their monthly repayments. The latest forecast from UK Finance comes as the Bank of England increased its base rate to 4 per cent on November 5, adding to concerns about borrowing costs for households already struggling with their finances.
While not everyone coming to the end of a fixed-rate deal will face higher repayments, homeowners who secured mortgages when interest rates were historically low could find themselves paying considerably more when they remortgage.
Rate increases and repayment examples
According to the Bank of England's July Financial Stability Report, around 750,000 households paying mortgage interest rates below 3 per cent were expected to come off fixed-rate deals during 2026. Meanwhile, Rightmove's latest mortgage rates update puts the average five-year fixed mortgage rate at 5.48 per cent in November 2026.
For illustration, someone with £175,000 outstanding on a repayment mortgage over 25 years would pay around £793 a month at an interest rate of 2.59 per cent. At 5.48 per cent, repayments on the same balance and term would rise to approximately £1,073 a month, an increase of £280 or around £3,360 annually.
The actual change in repayments will depend on the mortgage balance, remaining term and interest rate available when the existing deal ends.
Advice for struggling homeowners
Arielle Flynn, head of advice at UK Debt Expert, said: "Coming to the end of a fixed-rate mortgage that was secured when interest rates were historically low can mean a significant shock to household finances."
"For homeowners already struggling with other debts and rising living costs, an increase of £100 or £200 a month could be enough to make their mortgage unaffordable."
The debt specialist has shared five steps homeowners can take if they are struggling to keep up with their mortgage repayments.
Contact your mortgage lender
Homeowners who have missed a mortgage payment should contact their lender as soon as possible rather than ignoring letters or telephone calls. Lenders are required to treat customers fairly and consider appropriate support for borrowers experiencing financial difficulties. Explaining your circumstances and discussing what you can realistically afford could help prevent arrears from becoming more difficult to manage.
Ask about a repayment plan
People who can afford their normal mortgage payments but have fallen behind may be able to arrange a separate repayment plan to clear their arrears. For example, a lender might agree to spread a missed £500 payment over several months alongside the usual mortgage repayments. However, borrowers should avoid agreeing to arrangements they cannot realistically afford, as this could create further financial difficulties.
Check whether monthly payments can be reduced
Homeowners struggling with their regular repayments can ask their lender about temporary changes to their mortgage arrangements. Depending on their circumstances, options could include extending the mortgage term, temporarily switching to interest-only payments or arranging a payment break. Some lenders may also consider adding outstanding arrears to the mortgage balance. These arrangements can reduce immediate financial pressure but may increase the total interest paid over the lifetime of the mortgage.
Check available financial support
Mortgage arrears are classed as a priority debt because failing to maintain repayments could ultimately put someone's home at risk. Homeowners receiving certain benefits may qualify for Support for Mortgage Interest (SMI), a UK Government loan designed to help with mortgage interest payments. SMI is repayable with interest when the property is sold or ownership is transferred, subject to the scheme's rules. Further information about eligibility and applications is available on GOV.UK. People struggling with several debts can also seek free advice from organisations including Citizens Advice and StepChange.
Seek professional debt advice
Anyone who is unable to manage mortgage arrears alongside other debts should seek professional advice before their financial situation deteriorates further. Homeowners facing repossession proceedings should get advice urgently. Free legal assistance may be available depending on where they live and their circumstances.
Arielle said: "If you've already fallen into mortgage arrears, it's important to understand that you do have options. Your lender may be able to agree to a repayment plan, temporarily reduce your monthly payments or make changes to your mortgage arrangements to help you get back on track."
"One of the biggest mistakes people can make is avoiding contact with their lender because they're worried about the consequences. Ignoring missed payments won't make them go away, and the situation can become much harder to resolve if you leave it too long."
"Mortgage arrears are a priority debt, so it's important to address them alongside reviewing your wider financial commitments. Seeking professional advice can help you understand what support is available and work out a realistic way forward before the situation escalates."
