Question
I’m on a five-year fixed rate mortgage that’s set to expire in January 2027. I’ve been paying 1.9%, but the deals I’m seeing now are much higher.
My monthly payments could increase by several hundred pounds, which would put a strain on our household budget, especially with energy bills rising and childcare costs also rising.
I’ve heard that mortgage interest rates may go down, but I’m worried about waiting and missing out on a good deal. Is it better to get a new mortgage now and hope I can switch later if rates improve, or should I wait and see what happens?
Darren’s answer
This is a reasonable question and you are thinking about it in exactly the right way.
There is no one-size-fits-all answer, but there is a strategy that gives you flexibility while protecting you from rising costs.
Whether locking in a new price now versus waiting is a balancing act between two risks:
- Prices stay high or rise – miss out on today’s deals
- Prices drop later in 2026 – so you’re booking too early
The good news is that you don’t have to choose one or the other. Most brokers will recommend a compromise where you can lock in a new rate up to six months before the current rate expires, while reviewing rates and if they drop, switch before the final expiry date.
Most lenders allow you to lock in a rate up to six months in advance (some even allow up to nine months). Then you can switch to a better deal later before closing (with the same lender or via a broker).
In your case (expiry date of January 2027), you are now within the window in which you can secure a deal around July/August 2026, and then review prices right through to completion next January.
If you wait, you risk prices rising, and you will have missed the opportunity to lock in the price now.
Obviously, no one knows exactly what will happen to rates, as there are many factors including geopolitical concerns that may influence whether they rise over the course of the year.
Additionally, your rate of 1.9% is low, which means your rate is very likely to rise; However, it is difficult to predict how high it will be.
My recommendation is to secure a deal now but be flexible and review before finalizing.
This gives you peace of mind, protection from rising prices, and the opportunity to profit if prices fall.
Talk to a broker who can review rates with your current lender and those on the open market to secure the best rate. Also discuss the opportunity to review if rates are open and will guide you through the process.
About the Author
