UK lenders hold mortgage rates as nearly 1 million borrowers brace for payment rises
View original at uk.finance.yahoo.comUK lenders hold mortgage rates as nearly 1 million borrowers brace for payment rises Major lenders left mortgage rates unchanged this week as close to one million five-year fixed mortgages are expected to come up for renewal in 2026, exposing many homeowners who had locked in ultra low borrowing costs to the risk of sh…
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The average of the lowest remortgage five year fixed rates across the 10 largest mortgage lenders stood at 3.89% in January 2026
80% confidenceAn individual with a £37,500 annual income and a £30,000 deposit could borrow up to £168,375 without Mortgage Boost, but with a second applicant also earning £37,500, combined borrowing could reach £270,000 enabling purchase of a home worth up to £300,000
80% confidenceA total of 971,105 five-year fixed rate regulated mortgage products were opened in 2021, based on FCA data obtained via FOI request
80% confidenceAround 1.8 million households are due to come off fixed rate deals this year, and approximately half of these are expected to be five-year fixes
80% confidenceHigher rates could push up some households' annual mortgage payments by as much as £2,124, based on average house prices in 2021 assuming a borrower who put down a 25% deposit
80% confidenceUnder Mortgage Boost, an individual with a £37,500 annual income and a £30,000 deposit could borrow up to £168,375 (max home value £207,375), but with a second applicant also earning £37,500 the borrowing limit rises to £270,000 (max home value £300,000)
80% confidenceThe average rate for a two-year fixed mortgage came in at 4.49% this week, down from the previous 4.48%. The average five-year fixed deal came in at 4.98%, down from 4.99%.
80% confidenceHomeowners that locked in a super low rate five years ago have been sheltered from the ups and downs in interest rates in recent years. 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.
80% confidenceHomeowners that locked in a super low rate five years ago have been sheltered from the ups and downs in interest rates in recent years. Although a hike in payments is inevitable once the fix ends, mortgage rates have improved substantially recently and are much lower than at the peak. Shopping around for the best deal is vital, and starting the process several months in advance will help borrowers prepare for higher rates and enable a smooth transition to a new deal.
80% confidenceSantander's withdrawal of 60% LTV products was part of a reprice following changes to swaps after the Bank of England held interest rates
80% confidenceAround 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.
80% confidenceThe change was part of a reprice following the changes to swaps after the Bank of England held interest rates
80% confidenceHigher rates could push up some households' annual mortgage payments by as much as £2,124, based on average house prices in 2021 and assuming a borrower with a 25% deposit
80% confidence