£154bn of residential mortgages due to mature as lenders lower fixed rates

Homeowners coming to the end of their fixed-rate mortgage deals could have more competitive options than expected, as some of the UK’s biggest lenders cut rates.

Market analysis from Barclays indicates that between July and December 2026, residential mortgages worth £154.5 billion will reach the end of their term. This represents a 5.1% increase compared with 2025. Barclays also says buy-to-let mortgages worth £23.3 billion are due to mature during the same period.

This creates a huge remortgage opportunity for borrowers who want to secure a new fixed rate, switch lender, reduce their monthly payments or raise additional funds.

Mortgage lenders are cutting rates again

Some of the UK’s largest banks and building societies have reduced mortgage rates over the last few days, giving homeowners, landlords and homebuyers a welcome boost.

Halifax, Lloyds, Coventry Building Society, Barclays and NatWest are among the lenders to have made changes. Mortgage rates increased earlier this year as funding costs rose, but the latest round of reductions suggests lenders are now competing more aggressively for new mortgage business.

Barclays has launched some competitive options, including two-year fixed rates from just below 4.4% for borrowers with a 40% deposit or equity. It also has a two-year tracker rate from jsut over 3.95%. Nationwide for Intermediaries has a five-year fixed rate from 4.45%, while Lloyds, First Direct and HSBC have five-year fixed rates just below 4.5%.

For borrowers with larger deposits or greater home equity, more competitive remortgage deals are now available.

Borrowers should not simply accept their lender’s product transfer

Aaron Strutt, product and communications director at Trinity Financial, said: “Millions of borrowers are due to renew their mortgage rates over the coming months, and many have been worried about payment shock. Thankfully, some fixed and tracker rates are now looking more competitively priced, which means the increase in monthly payments may not be as severe as many homeowners feared.

“The lenders are fighting to top the best-buy tables, so borrowers should not automatically accept the rate offered by their existing mortgage provider. Product transfers can be convenient, but they are not always the cheapest option. It is worth comparing the wider market, especially for homeowners with larger mortgages or those wanting to raise additional money.”

Should you remortgage or take a product transfer?

Many homeowners stay with their existing lender because it is quick and does not usually require a full legal process or property valuation. This can be useful, particularly where affordability has changed or the borrower wants a simple switch.

However, a full remortgage to another lender may offer:

• A lower fixed or tracker rate
• Better terms for larger mortgages
• More flexible affordability calculations
• Interest-only or part-and-part options
• Additional borrowing for home improvements
• Debt consolidation options
• A better deal for landlords or portfolio landlords

The right option depends on your income, property value, loan size, credit score, existing mortgage balance and whether you want to borrow more.

Why additional borrowing is becoming popular

Many homeowners are choosing to improve rather than move, especially with high stamp duty costs and more expensive moving costs. Remortgaging can be a good time to raise funds for renovations, extensions, loft conversions, new kitchens, bathrooms or energy-efficiency improvements.

Aaron Strutt added: “For some homeowners, remortgaging is not just about securing a cheaper rate. It can also be an opportunity to restructure their finances or raise funds for home improvements. This is particularly relevant for borrowers who do not want to move but need more space or want to upgrade their property.”

Landlords also face a major refinancing period

The £23.3 billion of buy-to-let mortgages due to mature between July and December 2026 means landlords also need to plan ahead. Many buy-to-let borrowers have been hit by higher stress rates, stricter rental calculations and increased tax pressure.

Landlords coming off cheaper fixed rates should check whether their rental income still fits lender affordability tests. Limited company landlords, portfolio landlords and those with interest-only mortgages may need more specialist advice.

Why speak to Trinity Financial?

Trinity Financial’s brokers compare mortgage deals from high-street banks, building societies, specialist lenders and private banks. The team helps homeowners, landlords and homebuyers secure competitive fixed and tracker rates, as well as mortgages for larger loans, complex income, self-employed applicants and additional borrowing.

Borrowers coming to the end of a fixed rate should start reviewing their options around six months before the current deal expires. This gives time to secure a rate early and switch to a cheaper deal if pricing improves before completion.

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

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