Remortgage Affordability in 2026

1.8 million fixed rates expiring in 2026

An estimated 1.8 million UK homeowners will see their fixed-rate mortgage deals expire during 2026. Many of these deals were taken out in 2021 and 2022, when fixed rates were significantly lower than they are today.

If you fixed at 2% to 3% and your deal is ending, you are likely facing a new rate in the region of 3.5% to 5%, depending on your LTV and the product type. On a £200,000 mortgage over 25 years, moving from a 2.5% rate to a 4.5% rate increases monthly payments from approximately £897 to £1,112, a rise of £215 per month or over £2,500 per year.

The good news is that rates have come down from their 2023 peak, and the market is competitive. The bad news is that the jump from your existing deal to current rates may still feel significant. Understanding your remortgage affordability across the whole market helps you find the best available deal and plan your finances accordingly.

You can typically start arranging a remortgage up to six months before your current deal ends. Starting early gives you time to compare options and lock in a rate, which most lenders will hold for three to six months.

Stress testing: remortgage vs purchase

A common misconception is that remortgage affordability works the same way as purchase affordability. In practice, some lenders apply different, often more relaxed, criteria for remortgages compared to new purchases.

The rationale is simple: if you have been making mortgage payments successfully for several years, there is real-world evidence of your ability to service the debt. Some lenders reflect this by using a lower stress rate for remortgage applications or by giving more weight to your existing payment track record.

This distinction is particularly relevant if your circumstances have changed since you originally took out your mortgage. Perhaps your income has decreased, or your expenditure has increased. A lender that uses relaxed remortgage criteria may still approve you where their standard purchase criteria would not.

Not all lenders make this distinction, however. Some apply identical affordability assessments for both purchases and remortgages. This is another reason why checking multiple lenders matters: the lender with the most favourable remortgage criteria for your situation may not be the one you originally borrowed from.

Borrowing more when remortgaging

Remortgaging is not only about replacing your existing deal. Many homeowners use a remortgage to borrow additional funds, known as capital raising. Common reasons include home improvements, consolidating other debts, or funding major purchases.

When you apply for a remortgage with capital raising, lenders assess affordability on the total new mortgage amount, not just the additional borrowing. If your property has increased in value since you bought it, your LTV will be lower, which typically gives you access to better rates and potentially higher income multiples.

For home improvements specifically, some lenders view this favourably because the work is expected to increase the property's value. However, the affordability assessment is based on your current property value, not the projected value after improvements.

The amount of additional borrowing available to you depends on your current equity, income, and commitments. If you bought for £250,000 with a £200,000 mortgage and the property is now worth £300,000, your current LTV is approximately 67%. A lender comfortable at 80% LTV could potentially lend you up to £240,000 in total, freeing up £40,000 in additional funds, subject to affordability.

What if you fail the stress test

Some homeowners find themselves in a difficult position: they can afford their current payments but fail the affordability stress test for a new mortgage with a different lender. This is sometimes called being a “mortgage prisoner.”

This situation typically arises when:

• Your income has decreased since you originally took out the mortgage
• You have taken on additional commitments such as car finance or children
• Your property value has not increased enough to significantly lower your LTV
• Lender stress rates have increased since you originally qualified

If you find yourself in this position, there are several options. Your existing lender may offer you a product transfer (discussed below), which typically does not require a full affordability reassessment. You could also explore lenders with more relaxed remortgage criteria or specialist lenders who take a more pragmatic view of existing borrowers.

The FCA has also introduced rules to make it easier for borrowers who are up to date with payments to switch to a better deal, even if they would not pass a full affordability assessment under standard criteria. Your current lender should be able to explain your options under these rules.

Product transfers vs full remortgage

A product transfer is when you switch to a new deal with your existing lender without remortgaging to a different lender. This is often the simplest option and comes with several advantages.

No full affordability assessment: Most product transfers do not require a new affordability check. Your lender already holds the mortgage and is simply moving you to a different rate. This makes product transfers accessible even if your circumstances have changed.

No legal fees or valuation: Because the mortgage stays with the same lender, there are no solicitor fees and no property valuation required. This can save £1,000 to £2,000 in costs.

Speed: Product transfers can often be completed within days, compared to 4 to 8 weeks for a full remortgage.

The trade-off is that you are limited to your existing lender's rates, which may not be the most competitive in the market. A full remortgage takes more effort and cost, but it gives you access to the entire market. In many cases, the saving from a better rate with a different lender more than covers the additional costs.

The best approach is to get your existing lender's product transfer offer first, then compare it against what the wider market offers. This gives you a baseline to measure against.

Debt consolidation via remortgage

Consolidating existing debts into your mortgage by borrowing more and using the funds to clear credit cards, loans, or car finance is a common reason for capital raising on a remortgage.

The appeal is straightforward: mortgage interest rates are typically much lower than unsecured debt rates. Consolidating a £15,000 credit card balance at 20% APR into your mortgage at 4.5% reduces the interest cost significantly and lowers your monthly outgoings.

However, there is an important caution. By adding unsecured debt to your mortgage, you are spreading the repayment over a much longer period. That £15,000 on a credit card might be repaid in 3 to 5 years, but added to a 25-year mortgage, you pay interest on it for decades. The total cost over the life of the mortgage can actually be higher despite the lower rate.

Lenders vary in their attitude to debt consolidation remortgages. Some are comfortable with it, while others may cap the amount of capital raising that can be used for debt consolidation or apply additional scrutiny. If debt consolidation is your goal, checking across multiple lenders helps you find those with the most favourable approach.

Check your remortgage affordability

Whether you are looking to simply replace your expiring deal, raise additional capital, or consolidate debts, checking your remortgage affordability across the whole market gives you the full picture of what is available.

Mortgage Affordability checks your details against 60+ UK lenders simultaneously, including those with more relaxed remortgage criteria. You can model different scenarios: your current balance only, with additional borrowing for improvements, or with debt consolidation. The tool is built by a CeMAP-qualified mortgage professional who understands the nuances of remortgage affordability.

Last updated: April 2026