If you took a 2 or 5-year fix between 2021 and 2024, your deal probably ends in 2026. UK Finance counts roughly 1.8 million such borrowers. The remortgage cliff is not a clever industry phrase any more, it is a household event with real numbers attached.
Here is what is happening in the market and what to actually do about it.
What the rates look like in May 2026
| Product | Average rate | Direction since Jan 2026 |
|---|---|---|
| 2-year fixed (60% LTV) | 5.78% | Slowly falling |
| 5-year fixed (60% LTV) | 5.21% | Slowly falling |
| 2-year tracker (BoE base + margin) | ~5.85% | Tied to base rate |
| Standard Variable Rate (lender default) | 9.74% | Drifting up |
Source: Bank of England series and Moneyfacts averages, May 2026.
The Bank of England base rate sits at 4.25% as of the last MPC vote. Markets are pricing in two further 0.25% cuts before the end of 2026, but inflation is still 0.4% above the 2% target so cuts are conditional. None of this is a fix-vs-tracker recommendation. It is the backdrop you are remortgaging against.
The cost of doing nothing
If your fix ends and you have not lined up a new deal, your lender drops you onto its Standard Variable Rate. Average SVR is 9.74%. On a £250,000 repayment mortgage with 20 years left, the difference between a 5.78% fix and a 9.74% SVR is roughly £620 a month. Even three months of inertia is £1,800.
Lenders profit handsomely from SVR drift. They are not going to nudge you off it.
How early you can remortgage
Most UK lenders allow you to secure a remortgage up to 6 months before your existing deal ends. The new product completes at the moment your old deal expires. If rates fall further during those 6 months, you can usually switch to the better deal up to about 14 days before completion (lender-specific).
So the right move is almost always:
- Six months before your deal ends, get a broker to scan the market.
- Apply to lock in the best available rate.
- Watch rates over the next few months. If they drop meaningfully (more than 0.25%), ask your broker to swap.
- Complete on the day your old deal expires, with no SVR exposure.
Doing this on a £250k mortgage saves around £4,000 across a new 5-year term compared to waiting until expiry day, in our modelling using May 2026 rates and current SVR drift. Use our mortgage calculator to model your specific numbers.
Product fees vs interest rate
Lenders compete on rate but recoup on fees. A 5.21% deal with a £999 product fee and a 5.40% deal with no fee are not directly comparable. The crossover point depends on your loan size:
- Loan under £150,000: a fee-free deal usually wins overall.
- Loan £150,000 to £400,000: it depends, run both numbers.
- Loan over £400,000: the lower rate with the fee usually wins.
Most online comparison tools show "true cost over the deal period" figures. Use those. Do not let a low headline rate trick you into the wrong product.
Product transfer vs full remortgage
- Product transfer: stay with your existing lender, switch to one of their new products. Faster (usually no full underwriting), no legal fees, no valuation. The downside is you are not seeing the rest of the market.
- Full remortgage: move to a new lender. Usually a better rate but you will need a credit check, valuation, conveyancing (often free with the new deal), and 2 to 6 weeks of paperwork.
If your circumstances have not changed and the market has not moved much, product transfer is fine. If your loan-to-value has improved (your home is worth more, or you have paid down capital), or rates have fallen across the market, a full remortgage typically pays for itself.
Affordability has tightened
If your income has dropped, you have added childcare costs, or you have taken on consumer debt since your last deal, the new lender's affordability checks will not flatter you. The FCA softened mortgage stress tests in March 2025, but lenders still test against rates 1 to 3% above the product rate for affordability.
The mortgage prisoner problem has not fully gone away. The Court of Appeal dismissed a class action against TSB in February 2026; around 250,000 borrowers remain stuck on punitive SVRs at closed-book lenders.
If you are worried, run the affordability check first via a broker, not the lender. Brokers see across multiple lenders' criteria; lender direct will only quote what their specific underwriting will accept.
A word on offset and tracker products
Offset mortgages let savings cancel out interest on equivalent capital. Useful if you have £30k+ sitting in cash and a stable income.
Trackers (currently around 5.85% on 60% LTV) follow base rate plus a margin. With BoE potentially cutting in 2026, a tracker without an early repayment charge gives you optionality if rates drop sharply. The trade-off: if inflation surprises and the Bank holds, you pay more than a fix.
For most homeowners, a 5-year fix locks in stability and lets you plan. For investors with cash flow flexibility, a tracker on a property you might sell within 18 months can make sense.
Action this week
- Find your fix end date (mortgage statement or lender app).
- If it is within 6 months, contact a fee-free broker. L&C, Habito, Mortgage Advice Bureau are the major ones.
- Get rate quotes from at least 3 lenders. Compare on true cost, not headline rate.
- Lock in. If rates drop, switch. If they hold, complete.
- Do not let your old deal lapse onto SVR.