Rates rose again last week: why leaving a remortgage late can cost more

Who this is for: Anyone with a fixed rate ending before April 2027 who is deciding when to review their next mortgage deal.

The average two-year fixed rate went from 5.60% on 4 September to 5.63% on 7 September, while the average five-year rate moved from 5.64% to 5.68%, according to Moneyfacts figures reported by Yahoo Finance UK. Mortgage Solutions reported that the two-year swap rate rose from 4.06% to 4.26% in the month to 3 September, based on Chatham Financial data.

Reuters reporting on 8 September said markets were pricing three further Bank Rate rises by mid-2027. That is market pricing rather than a personal forecast, and it can affect the cost of new fixed mortgage deals alongside lenders' funding costs and commercial decisions.

Moneyfacts modelled a £250,000 mortgage over 25 years, moving from a 2.75% fix in March 2021 to the March 2026 average rate of 5.54%. The example showed a payment increase of £388 a month, or £4,655 a year. It is a worked illustration, not a reported customer case, and actual payments depend on balance, term and rate.

Mortgage Charter signatories allow eligible customers to lock in a new deal up to six months before a fixed rate ends and to request a better like-for-like deal until the new one starts, if one is available. The commitment applies to participating lenders and individual circumstances still matter, so it is sensible to confirm the options with the lender.

Leaving a deal to end without another arrangement can mean moving onto a lender's standard variable rate. Moneyfacts data cited by HomeOwners Alliance showed an average SVR of 7.13% on 1 September against a 5.63% average two-year fix on 7 September. That is a useful illustration of why the end date of a fixed rate matters, rather than a prediction of what any individual will pay.