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How Much Will My Mortgage Go Up?
Rates referenced here reflect the situation when this article was written and should be treated as illustrative only. Speak to an adviser for current figures relevant to your mortgage.
Whether your mortgage payments go up depends almost entirely on what type of mortgage you have, not just on what the Bank of England decides. For many homeowners thinking about remortgaging, questions remain about exactly how rate changes will affect their monthly payments.
In this article, we'll break down how different mortgage types respond to rate changes, what's actually happening with rates right now, and practical advice for both prospective homeowners and those planning to remortgage.
Why do mortgage rates change?
Mortgage rate movements are driven primarily by inflation and broader economic conditions. The Bank of England's Monetary Policy Committee (MPC) adjusts the base rate to help control inflation: raising it makes borrowing more expensive, which reduces spending and slows the economy; cutting it does the opposite. The MPC meets roughly every six weeks, eight times a year, to decide whether to change it.
Wage growth, global economic conditions, and shifts in international monetary policy all feed into these decisions, which is why the direction of rates can shift, sometimes quite quickly, in response to events well beyond the UK's own economy.
How different mortgage types respond to rate changes
If you have a variable-rate tracker mortgage, your payments will move in step with the base rate. This is because a tracker is contractually linked to the Bank of England base rate, so any change immediately feeds through to your interest rate and monthly payment.
If you have a fixed-rate mortgage, you're protected from these changes for the duration of your term. That said, it's still worth monitoring rates, since a significant shift could mean higher repayments once your fixed term ends and you need to remortgage.
If you're on your lender's Standard Variable Rate (SVR), the picture is different again, and worth understanding properly, since it's the rate most people end up on by default. Unlike a tracker, an SVR has no contractual link to the base rate at all. Each lender sets its own SVR entirely at its own discretion, which is exactly why SVRs vary so much between providers, and why a lender can hold its SVR steady even after a base rate cut, or move it independently of what the Bank of England does. SVRs are almost always significantly higher than fixed or tracker deals, which is why very few people choose to stay on one deliberately.
The rate picture right now
| Rate | Current level | Detail |
|---|---|---|
| Bank of England base rate | 3.75% | Held since December 2025, most recently on 30 July 2026 in a 6-3 vote, with the hawkish minority growing at each of the last three meetings |
| Average 2-year fixed rate | Around 5.6% | Up from roughly 4.83% in February 2026, largely driven by market volatility tied to the conflict in the Middle East |
| Average Standard Variable Rate (SVR) | Around 7.1% | Varies significantly by lender, from roughly 6.2% to over 8%, since SVR is not tied to the base rate |
Inflation, as measured by the Consumer Price Index (CPI), stood at 2.6% in the year to June 2026. However, the Bank's own July forecast projected CPI rising to around 3.2% by the end of the year, driven largely by higher energy costs linked to the conflict in the Middle East. That's the opposite of the steady decline that was widely expected earlier in the year, and it's part of why the MPC's most recent vote showed growing support for a rate rise rather than a further cut.
How much will my mortgage go up?
For many homeowners, the real question isn't about a small change to an existing rate, it's what happens if their current low fixed deal ends and they either move onto their lender's SVR by default or remortgage onto a new deal. Below is a comparison of monthly repayments at today's average SVR (7.13%) versus today's average 2-year fixed rate (5.6%), based on a 25-year term at 60% LTV:
| Mortgage amount | SVR (7.13%) | Average 2-year fix (5.6%) |
|---|---|---|
| £100,000 | £719 | £622 |
| £150,000 | £1,079 | £933 |
| £200,000 | £1,438 | £1,244 |
| £250,000 | £1,798 | £1,555 |
| £300,000 | £2,157 | £1,866 |
On a £200,000 mortgage, that's a difference of roughly £194 a month, or over £2,300 a year, simply between staying on the SVR by default and remortgaging onto a competitive fixed deal. For a more personalised estimate based on your own figures, try our mortgage repayment calculator.
What do current rates mean for remortgaging?
If your current deal is ending, the comparison above is exactly why timing matters. Homeowners rolling off a low fixed rate secured a few years ago will likely see higher payments on any new deal, but the alternative, doing nothing and defaulting onto the SVR, is almost always considerably more expensive still. Our guide to mortgage renewal covers how to time this properly, and our guide to remortgaging your house covers the process across a range of personal circumstances.
If you want to assess your credit score to improve your chances of securing a competitive deal before you apply, you can use our free credit check tool (£14.99 per month after the free 30-day trial). Using it will help you detect any possible mistakes or fraudulent activity on your profile, so that you can effectively deal with such problems. The trial and subscription can be cancelled at any time.
Is now a good time to remortgage?
Whether now is a good time to remortgage depends on your individual circumstances, but the decision usually comes down to timing. If your current low-rate mortgage is expiring, the real choice is typically between remortgaging onto a new deal or letting your loan default to your lender's SVR, and as the figures above show, remortgaging is almost always the cheaper route.
To make the most of your current low rate before it ends, consider making overpayments on your mortgage. Overpaying reduces your mortgage balance faster, meaning a smaller amount to finance when you remortgage. Just be sure to check your mortgage terms first, to confirm overpayments are allowed and to check for any limits or early repayment charges that could apply.
Should I speak to a mortgage broker?
Consulting a mortgage broker is a valuable step in navigating the mortgage landscape. Brokers not only help you understand the range of options available, but also offer insights into which deals might best suit your needs, regardless of whether you're a first-time buyer or homeowner seeking a remortgage.
Specifically, they have access to exclusive deals and lenders that you may not find on your own, opening you up to more competitive rates and terms. This can be especially valuable if you're looking to maximise your savings or find a tailored solution for your unique financial position.
At The Mortgage Genie, our extensive knowledge of the mortgage market enables us to provide expert advice, helping you find a competitive deal suited to your situation from our panel of lenders. If you're ready to explore your options, get in touch with us today at 0191 580 9890.
The above blog has information contained within which was correct at the time of publication but is subject to change.
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