Over 350,000 UK households on low-interest fixed-rate mortgages could see costs jump significantly in the next few months as previous deals come to an end.
Nearly half of mortgages taken out in a post-Covid ‘bounce back’ from October 2020 to February 2023 were for five-year fixed-rate loans.
Back then, the average rate was 1.88 per cent – a stark difference from the average ‘4-something’ per cent now. A £500K home loan finishing soon could increase by an extra £833 a month.
If this situation might apply to you, please do not delay in seeking specialist mortgage advice. Charterhouse Mortgages & Protection provides expert guidance to help medical professionals get the most suitable loan available to them, helping to ease the application process by explaining complex medical salaries and income to lenders.
Borrowers who were waiting for interest rates to be cut were also disappointed this month as the Bank of England held rates at the current 4 per cent because of rising inflation. Since April, the costs of goods and services has been rising again – mainly due to increasing food prices.
Only two of the nine members of the Bank’s rate-setting committee voted to cut rates in September suggesting that a decrease in mortgage rates in the next few months is unlikely.
If you would like to discuss your mortgage position or have a family member who needs assistance, please contact Beulah Antonin at Charterhouse Mortgages & Protection.
Beulah can advise on the full range of loans from investment purchases to commercial property and bridging loans.
She can be contacted on beulah@chmap.co.uk or 020 3764 5295.
*Charterhouse Mortgages & Protection is a trading style of Medical Family Finance.
Bridging loans and commercial mortgages are not regulated by the Financial Conduct Authority
Approver Quilter Financial Services Ltd 29/09/2025
