Anyone in the UK with a fixed-rate mortgage that is due to be renewed soon could be at risk of their mortgage rates rising in line with interest rates. According to the Office for National Statistics (ONS), more than 1.4 million households are facing the prospect of interest rate rises when renewing their fixed-rate mortgages this year.
The majority of fixed-rate mortgages which are coming up for renewal in 2023, around 57 per cent, were fixed at below two percent at the time. The ONS said that, based on Bank of England data, a peak in fixed deals ending is expected between April and June this year, with many homeowners expected to be paying much more for their mortgage each month.
So far, the string of Bank of England's interest rate hikes which have taken place over the last year, with the latest rise taking the rate to 3.5 per cent, have not yet affected those on fixed rate mortgages. But millions of homeowners may get a shock when they come to renew this year.
