Are mortgage repayments normally higher when its time to remortgage?

by Aaron Strutt

Jul 01 2026

A million more homeowners face higher mortgage bills than the Bank of England had previously expected due to the impact of the Iran war.

In its latest Financial Stability Report, the Bank of England's data says that the typical owner-occupier mortgagor rolling off a fixed rate in the next two years, their monthly mortgage repayments are projected to increase by £45. This is significantly smaller than increases experienced over the last few years – the median repayment increased by approximately £120 between the end of 2022 and end of 2024.

Based on the current market curve for interest rates, most borrowers on a two-year fixed mortgage expiring by the end of 2028 are projected to remortgage close to their existing rate and therefore see little change in repayments. However, these borrowers are now unlikely to see repayments fall over the coming years as was forecast prior to the Middle East conflict. But there are still a number of households which are projected to see repayments increase significantly, especially those on a fixed-rate mortgage from before interest rates began increasing from 2022. Nearly 750,000 households that are paying less than 3% interest will be rolling off fixes in 2026 and will see an average increase of £170 per month in repayments.

What is happening to remortgage rates?

Remortgage rates have been edging down again, with several lenders cutting fixed rates, but the market is still volatile. The cheapest deals are generally for borrowers with lots of equity, especially at 60% loan-to-value. Fixed remortgage rates are around the low-to-mid 4% range for lower-LTV borrowers, and there are sub-4% trackers.  

The key risks are inflation, politics, and uncertainty around the Bank of England. Bank Rate is still 3.75%, and borrowers should review options three to six months before their current deal ends to avoid slipping onto a higher standard variable rate. 

What has happened in recent years when it's time to remortgage?

Mortgage repayments are often higher when it is time to remortgage, especially for borrowers coming off very low fixed rates secured two, three or five years ago. If the new mortgage rate is higher than the old one, monthly payments will usually rise unless the borrower reduces the loan, extends the term, switches to interest-only or finds a cheaper deal. Many homeowners who fixed when rates were closer to 1% or 2% are now moving onto rates nearer 4% or 5%, so payment increases can be significant.

However, repayments do not always go up. If mortgage rates have fallen since the borrower last fixed, or if they have built up more equity and now qualify for a lower loan-to-value deal, their monthly payments may stay similar or even reduce. Borrowers should review their options around six months before their current deal ends, as many lenders allow rates to be secured early.

Speak to Trinity Financial

Trinity Financial’s brokers can compare remortgage rates with fixed and tracker deals from other major banks and building societies. 

If your current mortgage deal is ending within the next six months, it is worth reviewing your options early. Many lenders allow borrowers to secure a new rate in advance, and in some cases, it may be possible to switch to a better deal if rates fall before completion. 

Call Trinity Financial on 020 7016 0790, book a consultation, or complete our mortgage questionnaire or book an appointment 

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.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage.