Mortgage Rates Are Rising Again: Should You Review Your Mortgage?
Rising mortgage rates can create uncertainty for homeowners, particularly those approaching the end of a fixed-rate deal.
Even a relatively small increase in interest rates can make a noticeable difference to monthly repayments.
For homeowners with mortgages, the prospect of higher borrowing costs makes reviewing existing arrangements increasingly important.
However, deciding whether to fix your mortgage, remain on a variable rate or consider switching depends on your individual circumstances.
If you’re concerned about rising mortgage rates, here are five things worth considering before making your next mortgage decision.
1. Check when your current mortgage deal ends
If you’re on a fixed-rate mortgage, you may be protected from rising interest rates until your current deal expires.
However, once that period ends, you could face significantly higher monthly repayments.
Mortgage rates have increased recently. On 1 October 2026, the average five-year fixed mortgage rate reached 5.95%, its highest level in three years.
If your existing mortgage has a much lower rate, the difference in repayments could be considerable.
Check when your current deal expires and review your options well in advance.
Many lenders allow borrowers to secure a new deal several months before their existing mortgage ends.
Starting early gives you time to compare options without leaving everything until the last minute.
2. Consider whether fixing your mortgage makes sense
When mortgage rates are rising, some homeowners consider fixing their interest rate to provide greater certainty over monthly repayments.
A fixed-rate mortgage offers predictable payments for an agreed period, typically two or five years.
This can make household budgeting easier, particularly when living costs are already placing pressure on finances.
However, a fixed rate isn’t necessarily the right choice for everyone. If interest rates fall, you could end up paying more than borrowers taking out new deals.
Tracker and variable-rate mortgages offer different arrangements. Some may benefit if interest rates fall, although repayments can increase when rates rise.
Before deciding, consider how much certainty you want and whether you could comfortably afford higher repayments.
3. Compare the total cost of remortgaging
When reviewing your mortgage, it’s tempting to focus solely on the interest rate. However, the cheapest-looking deal isn’t always the most cost-effective.
Some mortgages come with arrangement fees, valuation fees or other charges. These can affect the overall cost, particularly if you’re borrowing a relatively small amount.
It’s also worth checking whether your existing mortgage has early repayment charges. Leaving a fixed-rate deal early could prove expensive.
Compare the total cost of different mortgage options, including fees and any incentives. This will give you a clearer picture of what each deal could mean for your finances.
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4. Review what you can afford each month
Rising mortgage rates make reviewing your household budget particularly important.
If your mortgage deal is coming to an end, calculate how much your repayments could increase. Consider whether your current income would comfortably accommodate the difference.
It’s also worth allowing for other rising household expenses, unexpected bills and any changes to your income.
If you’re approaching retirement, think carefully about how your mortgage repayments might fit alongside your anticipated retirement income.
Understanding your affordability before committing to a new mortgage can help you avoid unnecessary financial pressure.
5. Consider seeking mortgage advice
With mortgage rates changing and lenders regularly updating their deals, comparing your options can be challenging.
A mortgage adviser can help you understand the different products available and assess their suitability for your circumstances.
They can also consider your income, existing commitments and future plans when reviewing your options.
For example, extending your mortgage term could reduce monthly repayments, although it may increase the total interest payable over the life of the mortgage.
An adviser can also help you understand the implications of switching lenders or staying with your current provider.
Should you review your mortgage now?
Rising mortgage rates don’t automatically mean you need to change your existing arrangements.
However, if your current deal is approaching its expiry date, reviewing your options early can help you understand what lies ahead.
Consider your current interest rate, the remaining mortgage term, potential fees and what you can comfortably afford each month.
With borrowing costs changing, taking time to understand your options could help you avoid unexpected financial pressure and make informed decisions about your mortgage.
This article is for information purposes only and does not constitute financial advice. Tax treatment depends on individual circumstances and may change in future. Investments can fall as well as rise in value, and you may get back less than you invest
