Mortgage holders told to take seven steps to protect themselves from price rises | Personal Finance | Finance

Homeowners worried about rises in mortgage rates have been warned of the seven steps they should take to protect themselves. Industry body UK Finance estimates that around 1.8 million fixed-rate mortgages are due to expire, or have already expired, at some point during 2026.

About half of these are believed to be five-year fixed deals, many of which were taken out when borrowing costs were significantly lower. Several of Britain’s biggest lenders – including Santander UK, Barclays, Halifax, Lloyds, NatWest, HSBC UK and Nationwide Building Society – have raised mortgage rates in recent days. A number of smaller banks and building societies have followed suit.

Jatin Patel, head of mortgages, savings and insurance at Barclays, said most homeowners prefer fixed-rate deals because they provide stability when managing household finances.

He added that borrowers should understand the options available to them before their current deal ends.

“Homeowners can lock in a new deal up to 90 days before their current fixed rate expires, but with flexibility if circumstances or rates change,” he said.

“This can provide peace of mind for those who want to protect themselves against short-term volatility while planning ahead.”

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The increases come after rises in swap rates, which lenders use to determine mortgage pricing. Market volatility linked to the conflict in the Middle East has pushed up expectations around inflation and borrowing costs.

According to financial data website Moneyfactscompare.co.uk, the average mortgage rate has now climbed above 5%.

At the same time, the range of available mortgage deals has shrunk sharply. Moneyfacts said 472 residential mortgage products have been withdrawn from the market in the past 48 hours, marking the steepest drop in availability since the aftermath of the September 2022 mini-budget.

Despite the sharp fall, the situation remains less severe than the turmoil seen in late September 2022, when 935 mortgage deals – more than a quarter of the market at the time – disappeared in a single day, the firm said.

• Remember fixed rates are locked in. If you are currently on a fixed deal, it is important to remember that your rate and monthly payments will not change until that deal ends, regardless of what is happening in the wider world.

• Use the time before taking out a new deal to get prepared. Even if your deal does not end for a while, it is worth reviewing your household budget and understanding what your options might be when you next refinance. Barclays’ data indicates that for homeowners preparing for new mortgage deals, 45% of people said keeping monthly payments low was their top priority.

• People who are on tracker or variable rates may want to weigh up whether they would want the certainty over their payments from moving to a fixed-rate deal.

• Those with a fixed-rate mortgage that is coming to an end may want to consider starting their search early to give themselves choice. People can often lock in a new rate 90 days before their end of term date with their existing lender – or up to six months out if they are looking at moving lenders. Doing this early could help protect homeowners from further short‑term market volatility while still giving flexibility if rates or circumstances change. With many lenders, people can lock in a new rate using their app, without the need to book in an appointment.

• Homeowners may want to consider whether they want to move straight to a new fixed rate, or consider options such as moving to a tracker as they assess the market conditions, perhaps with a view to fixing at a later date.

• Seeking advice can be important. A lender or a mortgage broker can help homeowners understand their options and choose a path that best fits their circumstances and budget.

• Homeowners who are worried about their financial situation should talk to their existing lender, as they have the tools to be able to support those who are experiencing financial difficulty.