How a Fixed-Rate Remortgage Helped One Couple Stabilise Payments Amid Rising Interest Rates

Anonymous Customer Overview

A couple in their early 30s—both working full-time in professional roles and based in the South of England—wanted to secure financial stability as their current fixed-rate mortgage deal with Barclays was coming to an end. They considered a 2025 Barclays remortgage option to manage their finances better. With a mortgage term of 30 years and 1 month already in place, they were focused on managing monthly payments without extending or shortening the loan period.

The Challenge: Rising Interest Rates and Fixed Deal Expiration

The couple’s fixed-rate mortgage was set to expire in October. With increasing interest rates across the UK, they were concerned about the possible spike in their monthly payments. Considering a potential Barclays remortgage option in 2025, they were seeking a short-term fixed rate to ride out market volatility without locking into a long-term commitment that could become less favourable if rates dropped again.

Additionally, they wanted to avoid the hassle and possible costs of switching lenders, preferring instead to stick with their current provider if the terms were competitive under a Barclays remortgage for 2025.

The Solution: A Strategic 2-Year Fixed-Rate Remortgage

After a comprehensive review of their financial profile and preferences, a remortgage solution was structured that allowed them to:

• Remain with their existing lender, Barclays Bank plc
• Secure a 2-year fixed-rate mortgage at 4.22% until December 2027
• Keep the original 361-month term to avoid altering monthly payments significantly
• Pay no arrangement, legal, valuation, or survey fees
• Maintain portability and have an annual overpayment allowance (10%) without penalties

The customer was advised that although they would be subject to a 2% early repayment charge during the fixed period, they did not anticipate repaying the mortgage early and were happy to accept this condition. They appreciated the planned Barclays remortgage into 2025, which added confidence in their decision.

Why the 2-Year Fix Was Ideal

The couple were intentional about not tying themselves into a long-term deal. By opting for a shorter fixed term during a period of high-interest rates, they aim to reassess in two years with the potential for more competitive rates. Because of the relatively low loan amount (£108,099.15), it was also not cost-effective to opt for a product with additional fees.

Results: Stability, Flexibility, and Peace of Mind

The arrangement allowed the couple to maintain manageable payment levels, with their initial monthly mortgage repayments set at £529.16. Even after the fixed period ends, their forecasted monthly payments remain within a range they find affordable—even in worst-case interest-rate scenarios.

• Initial monthly payment: £529.16
• Post-fixed rate monthly estimate: £639.85
• If interest rates rise by 1%: £706.70
• If rates rise by 3%: £848.42

This transparent breakdown gave them confidence in their ability to navigate potential future economic shifts without jeopardizing home ownership.

“We didn’t want to lock into a longer term, and our advisor completely understood that. They found a deal with our current bank that didn’t involve extra fees and kept our payments predictable. It’s exactly what we needed at the right time.”

Frequently Asked Questions

How much can I save monthly by remortgaging when my fixed rate ends?

That depends on your lender, outstanding balance, interest rate, and new terms. In this case, staying with their current lender using a potential 2025 Barclays remortgage gave the couple the most cost-effective fixed rate without needing to pay fees.

Can I remortgage without extending or shortening my term?

Yes, if you remortgage with your current lender or find a lender willing to accommodate your existing term, you can keep the same duration without impacting monthly payments too much.

Does remortgaging affect my credit score?

In most cases, a remortgage will involve a credit check, which may cause a minor temporary dip in your score. However, managing your mortgage well demonstrates financial responsibility and can improve your score over time.

What documents are required for a remortgage application?

Typically, you’ll need proof of identity, proof of income (e.g., payslips or accounts if self-employed), recent mortgage statements, and possibly details of your current debts or financial obligations.

Can I repay a fixed-rate mortgage early without penalties?

Most fixed-rate mortgages include early repayment charges. In this case, 2% of the loan amount would be charged if repaid early before December 2027.

Secure Your Future with Smart Remortgaging

If your fixed mortgage term is nearing its end or you’re looking to reduce monthly payments, remortgaging could be the key to financial stability—even amid rising rates. Deal Direct Financial Solutions can help you evaluate your options and find the best solution tailored to your goals.

Contact us today to speak to a qualified mortgage advisor about your remortgage options—free, friendly, and fully FCA-regulated advice is just a call away.