Over Half of UK Mortgage Holders Could Face Higher Repayments by 2028 – Are You Prepared?

For millions of homeowners across the UK, the mortgage landscape is shifting. Data from the Bank of England’s Financial Policy Committee suggests that around 58% of mortgage holders – approximately 5.2 million people – could see their monthly repayments rise by the end of 2028. While this may feel like a distant concern, the time to prepare is now.

Understanding what is driving this trend, and what practical steps you can take, could make a meaningful difference to your financial position in the years ahead.

Why Are Mortgage Repayments Expected to Rise?

The answer lies largely in timing. A significant number of homeowners took out fixed-rate deals during the period of historically low interest rates that preceded 2022. As those fixed terms come to an end – many over the next two to three years – borrowers will be remortgaging onto products priced in a very different interest rate environment.

The Bank of England held its base rate at 3.75% in March 2026, following a series of cuts from the peak reached in 2023. While this direction of travel is welcome, rates remain considerably higher than the lows many homeowners locked in during 2020 and 2021. According to Moneyfacts, the average two-year fixed mortgage rate stood at 5.84% as of 7 April 2026 – compared to the sub-2% deals many borrowers secured just a few years ago.

For someone rolling off a deal secured at 1.5% onto one at 5% or higher, the monthly payment increase can be substantial – sometimes hundreds of pounds per month on a typical family home.

What Does This Mean for Homeowners and Landlords?

For owner-occupiers, the key concern is cash flow. A jump in monthly repayments does not happen in isolation – it arrives alongside broader cost-of-living pressures that have already stretched household budgets. Energy bills, food costs, and everyday expenses have all risen sharply over recent years, and many families have had little room to build financial buffers.

Landlords face a particular set of challenges. Those with buy-to-let mortgages on variable or expiring fixed-rate deals may find that rising repayment costs eat into rental yields significantly. In some cases, properties that previously generated a healthy return may become financially marginal – or even loss-making – once financing costs are recalculated. This is especially relevant given that buy-to-let mortgage interest is no longer fully tax-deductible for individual landlords, meaning the true financial impact can be greater than the headline numbers suggest.

For both groups, the instinct to wait and see can be costly. Planning ahead gives you options; being caught off guard leaves you with far fewer.

Fixed vs. Variable – Getting the Rate Decision Right

One of the most consequential decisions any mortgage holder faces is whether to fix their rate, and for how long. There is no universally right answer – it depends on your personal circumstances, risk appetite, and view of where rates are headed.

In the current environment, Moneyfacts data shows that the average two-year fixed rate stands at 5.84% and the average five-year fix at 5.75% as of early April 2026, with rates having risen in recent weeks as global economic uncertainty has pushed lender costs higher. Interestingly, the gap between the two terms is very narrow, which makes the decision particularly nuanced. If you fix for two years and rates remain elevated – or rise further – you face the same uncertainty sooner. If you fix for five years and rates fall materially, you may end up locked into a deal that looks expensive in hindsight.

What matters most is certainty and affordability over your chosen term, not trying to time the market perfectly. For many households, the security of knowing exactly what they will pay each month – and being able to budget around that – has real value in itself.

It is also worth noting that, according to UK Finance, around 1.8 million fixed-rate mortgages are due to expire in 2026 alone, meaning lenders are likely to see considerable demand for remortgaging products this year. Shopping around and seeking professional advice before your deal ends – rather than simply accepting your existing lender’s renewal offer – could save you a meaningful sum.

How to Prepare Financially

The households and landlords who will navigate this period most comfortably are those who plan ahead rather than react. There are several practical steps worth considering now.

First, review when your current mortgage deal expires and start researching your options at least three to six months in advance. Many mortgage offers can be secured ahead of time, giving you the ability to lock in a rate while still having the flexibility to switch if something better becomes available before you complete.

Second, revisit your monthly budget with your higher potential repayment figure in mind. Understanding the gap between what you pay now and what you might pay on a new deal helps you make informed decisions – and may highlight areas where you can save in the interim.

Third, if you are a landlord, consider a full review of your property portfolio’s financial performance under a higher-rate scenario. This should factor in not just mortgage costs, but also tax implications, maintenance provisions, and void periods.

Finally, if you hold investments or savings alongside your mortgage, it may be worth reviewing whether the returns you are generating justify holding those assets rather than reducing your outstanding mortgage balance – particularly if you are on or approaching a variable rate.

Speak to an Expert Before Your Circumstances Change

The decisions you make around your mortgage over the next 12 to 24 months could have a lasting impact on your financial well-being. Whether you are an owner-occupier weighing up your remortgaging options, a landlord reviewing your portfolio, or someone simply trying to understand what the changing rate environment means for your household, professional advice is invaluable.

At Ward Goodman, our team of financial planning professionals can help you assess your position clearly, consider your options objectively, and build a plan that gives you confidence, whatever the economic environment brings. Get in touch today to arrange a conversation.