If your fixed-rate mortgage is ending in 2026, you’re not alone and the jump in rates can feel significant.
According to UK Finance, around 1.8 million fixed-rate mortgages are due to expire this year. Many were taken out when rates were below 2%, meaning borrowers are now facing deals closer to 4.5–5% or higher.
In May 2026, the Bank of England held the base rate at 3.75%. While lower than previous highs, borrowing costs remain elevated, with Standard Variable Rates (SVRs) often exceeding 7%.
So if you need to borrow more and not just switch your deal, what are your options?
Can you release equity without remortgaging?
Yes, depending on your circumstances.
Remortgaging is the most common route. However, it requires refinancing your existing mortgage under new terms and current interest rates.
An alternative is to borrow separately using a second charge mortgage (also known as a secured loan), such as a Home Equity Line of Credit (HELOC).
What happens when you remortgage to release equity?
When you remortgage for additional borrowing, you:
- May replace your existing mortgage with a larger one
- Move your full balance onto a new rate
- Might pay early repayment charges (ERCs) if your deal hasn't ended
However, remortgaging can also be a good way to consolidate multiple debts or access a larger lump sum at a potentially lower interest rate than an unsecured loan.
If you're currently on a low fixed rate, remortgaging to release equity can increase the cost of borrowing across your entire mortgage, not just on the extra amount you need.
What is a Home Equity Line of Credit (HELOC)?
A Home Equity Line of Credit (HELOC) is a second charge mortgage that allows you to borrow flexibly for major expenses without changing your existing mortgage.
You receive a credit limit and can draw funds as needed, repay, and reuse the available balance for up to five years. You only pay interest on what you use, and you’ll need to make monthly repayments. There are no ongoing fees, no need to remortgage, and no unexpected costs.
How a HELOC works
- Your main mortgage stays the same: You keep your current rate, term, and repayments.
- You access a flexible line of credit: You can draw funds as needed, rather than taking a lump sum.
- You only pay interest on what you use: For example, if you’re approved for £50,000 but only use £10,000, interest applies to £10,000.
A HELOC allows you to borrow against the portion of your home that you own outright (your equity) without disturbing your primary mortgage at all.
What are the risks of borrowing separately?
A second charge mortgage can offer flexibility, but it’s important to understand the risks:
- Interest rates may be variable and can increase
- Fees and charges may apply
- Your home is used as security
- Spreading borrowing over a longer term may increase the total amount repaid
Is it better to remortgage or take a second charge mortgage?
It depends on your situation.
Remortgaging may be suitable if:
- Your current mortgage is ending
- You want one loan with fixed repayments
- You need a large lump sum upfront
A second charge mortgage (e.g. HELOC) may be worth considering if:
- You want to keep an existing low rate
- Your borrowing needs are spread over time (e.g., for home improvements)
- You’re looking to restructure existing borrowing
If you’re consolidating debt, it’s important to note this may reduce monthly payments but could increase the total amount repaid and extend the repayment term.
Should you remortgage in 2026?
There’s no single right answer.
If your fixed rate is ending, remortgaging might be the natural next step. But if you’re trying to access additional funds, it’s worth comparing the cost of replacing your mortgage with borrowing separately.
The right option depends on your current rate, your borrowing needs, and your long-term plans.
The bottom line
Borrowing against your home is a significant decision. Whether you remortgage or take out a second charge mortgage, it’s important to understand both the short-term affordability and the long-term cost.
🤔 Want to explore your options? Click here to learn more about how a Home Equity Line of Credit works.
👉 Click here to get an initial quote using a soft credit check (this won’t affect your credit score).
📗 Liked what you read? Click here to explore more guides to help you make informed decisions.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Remember, if you consolidate your existing borrowing, you may be extending the term and increasing the amount you repay in total.
