Remortgaging? How to choose between fixed and variable rates.

If you're coming to the end of a fixed rate mortgage, you're not alone. Thousands of homeowners who secured their deal during a period of historically low interest rates are now approaching remortgage and discovering a market that looks very different from the one they entered.

For some, the biggest surprise is how much mortgage rates have changed. For others, it's the impact those changes could have on monthly repayments, affordability and the range of products available to them.

One of the most important decisions you'll face is whether to choose another fixed rate mortgage or opt for a variable rate instead.

Neither option is inherently better than the other. The right choice will depend on your circumstances, your plans for the future and how comfortable you are with changes to your monthly repayments.

Note: Your home may be repossessed if you do not keep up repayments on your mortgage.

How have mortgage rates changed over the last two to five years?

The mortgage market has experienced one of its most significant periods of change in recent memory.

Following years of historically low mortgage rates, rising inflation and increases to the Bank of England base rate led to a sharp increase in borrowing costs. While mortgage rates have eased from their recent peaks, many homeowners approaching remortgage today are still moving from some of the lowest rates available in modern history to a significantly higher-rate environment.

Those coming to the end of five-year fixed rates secured in 2021 and early 2022 may see a noticeable increase in their monthly repayments, making it important to review their options before moving onto a new rate.

Average mortgage rates (September 2021 – August 2026*)

*The table above shows the average mortgage rates across the industry for the selected products, monitored by ValQ. They are not representative of Together’s rates during the period, should not be used as an indicator of future mortgage rates, and are to be used for illustrative purposes only.

However, it's not just mortgage rates that have changed.

Borrowers who secured a mortgage during the low-interest-rate era have since faced higher household costs, rising interest rates and affordability pressures. As a result, some may no longer meet the criteria of every mainstream lender, reducing the number of remortgage options available to them.

Different lenders assess applications differently, but for many homeowners, remortgaging today involves balancing three key considerations: the interest rate available to them, whether the repayments remain affordable, and which lenders' criteria they can meet.

Mortgage rates in 2026: What's happening now?

If you've been following mortgage rates recently, you'll probably have noticed that they've moved around more than many homeowners expected.

At the start of 2026, there was optimism that mortgage rates would continue to fall after the Bank of England reduced the base rate in late 2025. However, global economic and geopolitical uncertainty have negatively impacted inflation expectations and financial markets.

As a result, lenders have adjusted their pricing throughout the year, with some mortgage deals being withdrawn, repriced or replaced as market conditions changed.

While rates remain lower than some of the peaks seen in recent years, they're still significantly higher than the ultra-low-rate environment many homeowners became used to before 2022.

For borrowers approaching remortgage, it's important to remember that mortgage rates can change quickly. Rather than focusing solely on where rates might go next, it can be more helpful to consider which mortgage option best suits your budget, plans and circumstances both now and in the future.

What affects mortgage rates?

Mortgage rates are influenced by a range of factors, including wider economic conditions and individual borrower circumstances.

Some of the factors that lenders may consider include:

• The Bank of England base rate
• Inflation and broader market expectations
• Lender funding costs
• Competition within the mortgage market
• The size of your deposit or available equity
• Your income and affordability profile
• Your credit history
• The type of property you're borrowing against

This means two borrowers remortgaging at the same time could receive different rates depending on their individual circumstances.

It's one reason why comparing options early can be helpful, particularly if your circumstances have changed since you originally took out your mortgage.

What happens if you do nothing when your fixed rate ends?

In many cases, if you don't arrange a new mortgage product before your fixed-rate period ends, your mortgage will automatically move onto your lender's Standard Variable Rate (SVR).

Unlike a fixed rate mortgage, an SVR can rise or fall over time, meaning your monthly repayments could change.

Because SVRs are typically higher than rates available through new mortgage deals, many borrowers begin reviewing their options several months before their existing mortgage deal comes to an end rather than automatically moving onto a reversion rate.

That doesn't necessarily mean switching lender. Depending on your circumstances, you may be able to move onto another mortgage product with your current lender, which is often quicker and easier than changing lenders.

A fixed rate could be a good option if...

A fixed rate mortgage allows you to lock in your interest rate for an agreed period, typically between two and ten years.

During that period, your monthly repayments remain unchanged, regardless of what happens to wider interest rates.

Potential benefits

• Your monthly repayments are predictable.
• Budgeting can be simpler.
• You're protected against future interest rate rises during the fixed term.

Many borrowers value the certainty and predictability of knowing what their mortgage payment will be each month.

Potential drawbacks

• You may not benefit if interest rates fall.
• Early repayment charges often apply.
• You may have less flexibility if your circumstances change.

While discussions about fixed rates often focus on where interest rates might go next, the main attraction for many homeowners is simpler: knowing exactly what their mortgage payment will be each month.

Questions to consider

A fixed rate could be worth exploring if:

• You value certainty over flexibility.
• Higher future payments would put pressure on your budget.
• You prefer knowing exactly what your mortgage payment will be each month.
• You expect to remain in the property for the duration of the fixed period.

A variable rate could be a good option if...

A variable rate mortgage can rise or fall over time.

This means your monthly repayments could decrease, but they could also increase depending on future rate movements.

Potential benefits

• You may benefit if rates fall.
• Some products offer greater flexibility than fixed rates.
• Certain variable mortgages may have lower fees.
• Flexibility can be attractive if you expect your circumstances to change in the near future.

Potential drawbacks

• Monthly repayments could increase.
• Budgeting can be more challenging.
• Rate changes can occur throughout the mortgage term.

A variable rate may appeal to borrowers who are comfortable with fluctuations in their monthly repayments and who would like the opportunity to benefit if rates fall. However, if interest rates increase, your monthly repayments could rise significantly.

You should consider whether your finances could comfortably afford higher payments before choosing a variable rate mortgage.

Questions to consider

A variable rate could be worth exploring if:

• You're comfortable with some uncertainty.
• Your finances could cope with higher repayments if rates rise.
• You'd like the opportunity to benefit if rates fall.
• Flexibility is more important to you than payment certainty.

Fixed vs variable: Which option should you choose?

There isn't a one-size-fits-all answer.

A fixed rate may appeal to borrowers who value certainty and predictable household costs. A variable rate may suit those who are comfortable with changing repayments and want greater flexibility or the opportunity to benefit from future rate reductions.

The right mortgage isn't always the one with the lowest headline rate.

It's also one that fits comfortably within your budget, reflects your attitude to risk and supports your plans for the years ahead.

A useful question to ask yourself is:

Which option would I feel most comfortable with if rates changed tomorrow?

Already have a mortgage with Together?

If you're an existing Together customer approaching the end of your current mortgage deal, a product transfer could be an option worth considering.

A product transfer allows you to move onto a new eligible mortgage product with the same lender rather than remortgaging elsewhere. This can be a quicker and simpler process in some cases, although remortgaging with a different lender may provide access to alternative products or rates.

It's important to compare your options carefully and ensure any mortgage product remains suitable for your needs and circumstances.

Whichever option you decide on, we're here to help

Remortgaging is a good opportunity to review your current circumstances and make sure your mortgage still supports your plans.

Whether you're looking for greater payment certainty, more flexibility or simply want to understand your options, taking time to compare different mortgage types can help you make a more informed decision. If you’re unsure which option is right for you, consider seeking independent mortgage advice.

Our team can explain the products and options available from Together and answer any questions you may have.