Here’s how much your mortgage repayments could change if you need a new deal this year
Why borrowers may need to brace themselves if changing deal in 2025
- Around 446,000 fixed-rate mortgage deals are set to expire in the final quarter of 2025, impacting a significant number of UK households.
- This includes approximately 218,000 five-year fixed deals taken during the pandemic's low-interest period, and 138,000 two-year fixes from the cost of living crisis.
- Households renewing two-year fixes from the 2023 peak in rates may see reduced monthly payments, while those on five-year deals from 2020's ultra-low rates face higher costs.
- Hopes for a Bank of England interest rate cut before year-end have increased following September's inflation data, which could lead to slightly lower mortgage pricing as lenders compete.
- Experts advise borrowers to consider their risk appetite, with some opting for the certainty of a five-year fix and others preferring a two-year deal in anticipation of further market stability and potential rate reductions.