The "Cliff Edge": Surviving the Fixed-Rate Expiry

For millions of UK homeowners, the scariest date on the calendar isn't Halloween—it's the day their 2-year or 5-year fixed rate expires.

Moving from a historic low of 1.5% or 2% to a new reality of 5% or 6% is not just annoying; for many, it is a financial catastrophe.

The Problem: Payment Shock

Let’s do the math on a typical £250,000 mortgage.

• At 2%: Monthly payment is roughly £1,060.
• At 6%: Monthly payment jumps to £1,610.

That is a £550 increase every single month. That’s £6,600 a year that you have to find from your post-tax income just to stand still.

The Agitation: The Compound Damage

It’s not just about the monthly cash flow. At 6%, your payment composition shifts drastically. Instead of paying off capital, almost your entire payment goes to servicing interest. You stop building equity and start renting money.

Waiting until the remortgage letter arrives is too late. You need to act before the fix ends.

The Solution: The "Payment Shield" Strategy

The goal is to neutralize the payment shock. You can calculate exactly how much capital you need to inject now (while rates are still low or just before refinancing) to ensure your new payment at the high rate stays the same as your old payment.

This is the "Payment Shield" lump sum. By reducing the balance, the higher rate applies to a smaller pot, keeping the monthly cost stable.

📱 The Amorti Simulation

Let's calculate your Shield amount.

1. Open AmortiApp.
2. Enter your current balance and the new expected rate (e.g., 6%).
3. Look at the projected monthly payment. It will be high.
4. Go to "Extra Payments" and try different lump sums until the monthly payment matches your current comfortable level (e.g., £1,060).

• Example Result:* You might find that paying £40,000 now prevents the £550/month hike.

If you have savings earning 4% taxable interest, using them to stop a 6% mortgage cost is a no-brainer tax-free win.

Don't fall off the cliff. Build a bridge.

Calculate My Shield Amount