Remortgaging has always been a smart way to keep your finances in check but 2026 is shaping up to be one of the most important years for remortgage planning in a decade. With millions of fixed-rate deals expiring, evolving lender criteria, and a changing interest rate environment, homeowners will be more active than ever in reviewing their options. 

Lenders allow you to secure a new mortgage option within 6 months of your current deal ending, so best advice is to begin looking 6 months before to give you and your adviser plenty of time to find the perfect mortgage recommendation, complete the paperwork and legals before your current deal expires. This will save you time, money and a lot of stress. 6 months allows you to lock in the best rate available at that time, but also review rates up until completion so if rates drop your adviser can continue to reduce your rate if they improve. 

2026 sees millions of people coming to the end of their fixed rate deal. In 2026 we see a blend of people coming off long term fixed rates secured on a 5-year fixed rate when interest rates were at record lows in COVID. But also, those who fixed for the shorter term in 2023 when interest rates skyrocketed after Liz Truss disastrous Autumn budget saw interest rates hit 6/7% overnight. 

 

Those millions of people who fixed their rate back in 2021 will see their rate increase slightly as rates have increase from the average of 1.5% in 2021 to 4% in 2026. On the flip side of that, those that are coming to the end of the deal they secured in 2023-24 can expect a nice surprise as they will likely move on to a lower interest rate than they currently have. 

 

2026 is a big year for interest rates as we expect interest rates to drop from 4% to 3% throughout the year. 

 

Many people still see the mortgage market as volatile, which is understandable. With COVID still fresh in people’s memories, the spike in rates in 2023 followed by falling rates year on year since then has left many borrowers unsure what to do with their mortgage moving forward. This is where using the expertise of an independent adviser and giving them 6 months’ notice to begin their research will put you in the best position to secure the best deal possible. 

 

Since the mortgage market has eased since 2023, many high street lenders are easing their lending criteria and increasing their affordability as they compete to claim more of the increasing market. 2026 expects to see more lenders ease their criteria further as they continue to fight for the mortgage business on offer. 

 

This means remortgage rates may settle lower than the 2024–2025 peaks, but deals will still vary widely depending on credit profile, loan-to-value, and lender appetite. 

 

Whether your deal ends in January 2026 or December 2026, now is the perfect time to get ahead. 

You hand over your deposit right at the end of the transaction. After you have secured your mortgage and all the legal work has been done you will pay your deposit at the very end of the transaction when you exchange contracts. 

At the point of contract exchange you pay your deposit to your solicitor along with any potential stamp duty liability and the fees to the solicitor for the work they have done for you. At the point of exchange and in preparation for completion (typically the following week) your solicitor will send you a completion statement which will outline the remaining costs due from you to the solicitor which will have a total amount owed at the bottom but the breakdown above including the solicitors fee, the stamp duty owed and your deposit amount too. 

A lifetime ISA also known as a LISA is a government backed savings account where the government will give you a 25% bonus on anything you save up to £4,000 per year, effectively turning your £4,000 into £5,000 each year. No other savings account is going to give you a 25% uplift, so we advise you to open one immediately and maximise this account first. Of the 5 tips in this blog, this one is the one that is going to get you to your target fastest. 

 

2. Pay yourself first 

 

What do we mean by pay yourself first? Instead of waiting until the end of the month to see what money you have left after you have paid for everything else, you send money to your savings account first and live off what is left over. Rather than the other way round. By paying yourself first you make sure that each month you are consistently putting money away towards your deposit, instead of saving a small amount of the remining money you have at the end of the month. By making it a priority on payday you give yourself the best chance to hit your target 

 

3. Save by direct debit 

 

Setting up a direct debit from your current account to your savings account means each month you automatically save towards your deposit without having to think about it. Best advice is to set up the direct debit to come out on the day you get paid or the day after before you have chance to spend it and before you notice. This takes the thinking and the emotion out of savings as the direct debit will save the money for you whether you feel like saving or not. 

 

 

4. Use Round up apps 

 

Round up apps offer you the opportunity to round up your spending on each transaction to the nearest £. It doesn’t sound like a lot but a few extra pence each day towards your savings can soon add up to a big amount of money in your savings over time. 

 

5. Track how much you have saved so far 

 

Saving your deposit can take time, a lot of time in some cases so tracking your savings will keep you motivated to continue. By setting a goal you have direction and can build a plan on how to get there. E.g. if you need to save £20,000, saving £200 per month will take you 100 months. By tracking how far you have come will motivate you to keep going knowing the end is in site you are so close to achieving your goal. 

 

If you would like to talk to use on how you can save your deposit faster, or if you have your deposit saved and are ready to explore your lending options, please get in touch by hitting the link below. 

Your Trusted Mortgage Partner in Hull, East Yorkshire | Green & Green