Key mortgage insights from one of our Partners
Lawrence Robbins F.P.C/M.A.Q
How to deal with mortgage rate changes?
We live in a volatile world and global events affect global financial markets and these lead to mortgage rate changes.
This was evidenced clearly in the first half of 2026 as the UK saw a mortgage rate increase of 23% following the US and Israel attack on Iran on 28th February.
Our charts below how major lender's mortgage rates increased on residential and buy to let mortgages as the first half of 2026 progressed.
Residential mortgage rate increases
Mortgage rate changes in two year no fee fixed products offered by residential major lenders in first half of 2026
Buy to let mortgage rate increases
Mortgage rate changes in two year no fee fixed products offered by major buy to let lenders in first half of 2026
These are major mortgage rate changes, over 1% higher in some cases across March, and 0.6% lower between April and July.
Against a background of mortgage rate changes, how painful can poor remortgage timing, and lack of planning be?
Consider a Halifax 60% LTV, 2‑year fixed mortgage rate comparison and the cost impact on a £200,000 mortgage for a rate secured on 1st March versus 1st April.
- Rate available 2nd March 2026 = 4.25%
- Rate available 1st April 2026 = 5.57%
Difference = +1.32 percentage points
Extra interest cost (interest-only basis, rate difference applied flat to £200,000):
- Per year: £200,000 × 1.32% = £2,640
- Over 2 years: £5,280
This is a simplified comparison — it applies the rate difference directly to the full £200,000 for both years, which is accurate for an interest-only mortgage. If this is a capital-and-repayment mortgage, the true extra cost would be slightly lower than £5,280, since the outstanding balance reduces a little each month as capital is repaid. A 2 year fixed rate can often run for 26 or 27 months as lenders finish to rate on a set date, that may increase the extra interest cost further.
What to do to protect yourself against mortgage rate increases?
How can you, as an existing mortgage borrower, deal with these mortgage rate changes?
1. Plan your remortgage early
You know when your existing mortgage rate is due to end (if you don't, find out today).
Don't put your head in the sand, get some advice 6 months before your rate is due to end.
2. Book you remortgage rate early
A borrower with a rate ending in May could have booked a new rate in February and saved 1% a year for 2 (or more) years on their rate.
3. Check the wider remortgage market.
A BM Solutions borrower checking the wider market with an independent mortgage broker could have potentially shaved 0.35% off of their rate at anytime in the first half of 2026.
4. Secure and be prepared to swop your mortgage rate
A residential borrower booking a rate at the peak of the market in April for the end of July could still have swopped to a rate 0.4% lower before their current rate expired.
5. Use an Independent Mortgage Broker
If you go direct to your Lender, will you be made aware of lower rates available elsewhere? - No, you will not.
If you secure a rate early with your Lender, will your Lender always alert you to rate drops before that secured rate starts? - No, they will not.
Our remortgage service
Our remortgage service is built to handle mortgage rate changes
We offer a remortgage and mortgage product transfer service to both residential and buy to let borrowers.
Remortgage options across the whole of the market
As independent mortgage brokers we will search the whole of the market for the best rate available you.
Smart and flexible mortgage rate switch service
If you prefer to, or need to, stay with your current lender, we can handle this for you at no cost- we will book your new rate early to protect you against rates rise.
We can then switch you to a new, lower rate, if one becomes available - again at no cost to you.