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Remortgaging from a 5 year fix

Journalist: Frances Ivens, Telegraph

ended 05. February 2025

Looking for a case study for the Telegraph of anyone who took out a sub 2pc 5-year mortgage in 2020 who is now facing refinancing on to a much higher rate.

Or anyone who took out the sub-1pc deal in 2021 who is already thinking about how they will afford the rate increase. 

 

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Editor
Ben Perks
Managing Director at Orchard Financial Advisers
I've literally just had a conversation with a client whose 1.94% rate is due for renewal in May.
They started the conversation with "we want to keep our payments the same", unfortunately i have had to burst that bubble for them. Fortunately for these clients we can mitigate the increase slightly by extend the term but their payments will still be increasing.
They have a relatively modest mortgage but are still facing a £174 monthly increase on a like for like basis. With the soaring costs of absolutely everything else it is difficult for people to see where this extra money is going to come from.

There will be several difficult conversations this year with clients like this, many of them know whats coming and are expecting higher payments, but the optimistic amongst them will be preying for better rates; and quickly.