Navigating Your Mortgage Renewal in 2025: How to Secure the Best Deal in a Volatile Market
by Niamh Byrne, Head of Mortgages (Accurate as at February 2025)
As we step into one of the busiest years for mortgage renewals in recent memory, many households are facing significant financial decisions. Approximately 700,000 fixed-rate mortgages from 2020 are set to expire, leaving borrowers to navigate a mixed and uncertain market. Whether you’re renewing, considering downsizing, or simply weighing your options, it’s crucial to have a clear plan in place.
The Challenge: Rising costs and market volatility
Borrowers coming off fixed-rate deals may face higher interest rates than they’re used to, leading to increased monthly repayments. This change has prompted some homeowners to consider selling or downsizing to manage costs more effectively. Adding to the complexity, the current mortgage market is marked by mixed trends:
- Rising rates from some lenders: Major lenders such as Virgin Money, Skipton, and TSB have recently increased fixed mortgage rates by up to 0.2%, particularly impacting mortgages with loan-to-value (LTV) ratios between 65% and 75%.
- Decreases from others: While some lenders have reduced rates, overall market volatility means these opportunities may not last long.
This uncertain environment highlights the importance of acting quickly and seeking expert guidance to secure the most cost-effective mortgage deal.
The impact of expiring fixed rates
For many households, the expiration of fixed-term mortgages will bring financial adjustments. Higher interest rates may stretch budgets, while others may consider selling their current property and downsizing. Planning ahead is key to managing these transitions smoothly.
If you’re contemplating a move, affordability assessments can be an invaluable tool to help you understand your financial position and evaluate your options. Whether staying put or exploring new opportunities, having a clear picture of your affordability empowers you to make informed decisions.
How to navigate the mortgage market in 2025
Here are our top tips for ensuring you secure a competitive deal in 2025:
- Act early: With so many borrowers seeking to renew this year, competition for the best deals is fierce. Start the renewal process as soon as possible to lock in competitive rates and avoid delays.
- Understand market trends: Keep an eye on shifts in interest rates and lender policies. While some lenders may offer attractive rates, others are adjusting to rising costs, creating a mixed landscape.
- Seek guidance: A whole-of-market broker can provide invaluable support in this environment. By exploring deals across the entire market, they can help you find the most suitable and cost-effective mortgage for your situation.
- Fully evaluate your options: If higher repayments are a concern, consider whether refinancing, downsizing, or extending your term might help manage costs. (A personalised affordability assessment can make this process easier.)
A Whole-of-Market Approach?
A whole-of-market mortgage broker can offer a much wider range of products, representative of the entire market, as opposed to mortgage advisers that are tied to a specific lender or a limited list of lenders. In a complex and competitive mortgage market, a whole-of-market broker ensures you’re not limited to deals from specific lenders. Instead, you gain access to the full range of options available, maximising your chances of securing a favourable rate.
Additionally, an experienced broker can help you act quickly to take advantage of opportunities before rates potentially rise further.
We can help
With so many variables at play, navigating your mortgage renewal can feel overwhelming. That’s why we’re offering free 20-minute assessments to help. These free assessments are designed to help you:
- Review your current financial situation.
- Explore tailored mortgage options.
- Create a clear plan to secure a competitive deal.
Take control of your financial journey
2025 is set to be a record-breaking year for mortgage renewals, and the market’s mixed trends only add to the urgency. Taking proactive steps now can save you time, money, and stress in the months ahead.
The expiration of fixed-rate mortgages presents both challenges and opportunities. With the right guidance, you can navigate this period confidently, securing a mortgage deal that aligns with your goals and financial situation.
Let’s work together to secure a mortgage solution that works for you. Contact us to discuss your options.
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