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UK Mortgage Holders Face Payment Shocks as Fixed Deals Expire

Nearly one million homeowners risk steep repayment increases as fixed-rate mortgages end, with standard variable rates hovering at 7.58%–8%.

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Overview

  • Around 4,384 fixed-rate mortgage deals expire daily in the UK, affecting nearly a million households with potential payment spikes.
  • Homeowners with two-year fixed deals from 2023 could face an average annual increase of £2,861 if they roll onto standard variable rates (SVRs).
  • Those coming off five-year fixed deals from 2020 risk an even sharper rise, with annual payments increasing by £4,860 on average.
  • The Bank of England has cut its base rate to 4.25%, its fourth reduction since August 2024, but SVRs remain elevated between 7.58% and 8%.
  • Experts urge borrowers to refinance up to six months before their deals end to avoid SVR shocks and recommend checking credit scores to secure better rates.