Households face mortgage reckoning as borrowers jump from 1% to 5% rates: What you can do to cut bills

By ED MAGNUS, SENIOR THIS IS MONEY REPORTER

A huge number of homeowners face a mortgage reckoning as they come to the end of their sub-2 per cent five-year fixed rates over the coming months, new analysis shows.

There are hundreds of thousands of households who locked into super cheap five-year deals in 2021 and the first half of 2022 who now face a painful shock when they come to remortgage.

Many households, spurred on by super low interest rates and their experiences of lockdown during the pandemic, took on larger mortgages in order to buy bigger and more expensive homes.

Five years on, with higher oil prices, renewed inflation and a global bonds sell-off rattling financial markets, interest rates are back on the rise.