750,000 people are about to see their mortgage payments jump by £170 a month

750,000 people are about to see their mortgage payments jump by £170 a month Around 750,000 homeowners are currently sitting on mortgage deals under 3% interest If you locked into a mortgage deal a couple of years ago when rates were rock bottom, there is some news you need to hear before it lands on your doormat as a nasty surprise. Around 750,000 homeowners are currently sitting on mortgage deals under 3% interest, and a lot of those deals are due to end this year. When they do, the Bank of England estimates repayments will rise by an average of £170 a month. That's not a one-off cost. That's every single month, for as long as your new deal lasts. Unfortunately, this isn't a small, unlucky group. The Bank of England now expects more than 5 million homeowners to see their monthly mortgage repayments rise by the end of 2028. If you've got a mortgage, there's a genuinely decent chance you're one of them. Why this is happening A few years ago, mortgage rates were sitting at historic lows; some homeowners locked in fixed deals under 3% without a second thought, because that's just what was on offer at the time. Since then, rates have climbed and settled at a higher level, and they've stayed there. So when those cheap fixed deals expire, homeowners aren't being offered anything close to what they had before; they're rolling onto whatever the current market rate actually is, which is a lot higher. The jump is simply the gap between the rate you locked in years ago and the rate that exists today. And, for hundreds of thousands of people, that gap is about to become very real, very quickly. How to check if this is you You don't need to guess. Two things to look at right now: - Find your mortgage offer letter or online account, and check your current interest rate and the date your fixed deal ends. If it's below 3% and ending this year, this is you. - Check how far away your renewal date actually is. Most mortgage providers let you lock in a new deal up to six months before your current one ends, so even if your deal doesn't finish until later in the year, you may already be able to act. What to actually do about it The single biggest mistake people make here is doing nothing and letting their deal lapse onto their lender's standard variable rate, which is almost always the most expensive option available. If that's happened to you already, it's worth checking today, not next month. If your deal is ending soon: - Start comparing new deals now , even if your renewal date feels a way off. Rates change, and locking in early protects you if they rise further, while most lenders let you switch to a cheaper deal later if rates fall before you complete. - Talk to a mortgage broker , ideally a whole-of-market one rather than going straight to your existing lender, so you can actually see what else is out there rather than just what they choose to offer you. - Budget for the higher figure now , even before your new rate kicks in. Building the extra £170 (or whatever your specific number turns out to be) into your monthly budget ahead of time softens the shock considerably compared to it landing all at once. The mortgage jump is about to hit millions of household budgets over the next couple of years, and the earlier you know where you stand, the more options you have. If you haven't checked your mortgage renewal date in a while, today's a good day to do it!