As these borrowers reach the end of deals secured between October 2020 and February 2023, many will face a significant rise in monthly repayments, according to bill management platform Nous

Mortgage brokers are expected to play a vital role in supporting more than 350,000 households whose five-year fixed rate mortgages are set to expire this winter.

As these borrowers reach the end of deals secured between October 2020 and February 2023—when interest rates were at historic lows—many will face a significant rise in monthly repayments, according to analysis by bill management platform Nous.

Nearly half of all mortgages arranged during that period were fixed for five years, allowing borrowers to avoid the rate spikes seen two years ago. However, with average five-year fixed rates now at around 5%, compared to 1.88% in 2020, those seeking new deals could see their payments rise sharply.

Lenders have recently raised interest rates after a period of reductions. Last week, major providers including Nationwide Building Society and Halifax increased the rates on some of their fixed-term products, with HSBC following suit on Monday.

Recent economic data has cast doubt on the likelihood of further Bank of England base rate cuts in the near term.

Hundreds of thousands of homeowners are in for an unpleasant shock this winter, said Greg Marsh, chief executive of Nous, in an article published by The Guardian. The era of ultra-cheap mortgages is over.

For these households, it’s leaving them thousands of pounds a year worse off. The increases come as other household bills are also rising, with water and council tax up this year and energy prices set to rise in October, he added.

As remortgaging borrowers face these challenges, the role of mortgage advisers has become increasingly important.

Mark Harris, chief executive of mortgage broker SPF Private Clients, emphasised the need for professional guidance across the market.

All cohorts of borrowers—whether first-time buyers (with the new schemes available), those remortgaging (coming off a two- or five-year fix), or purchasing their next home—should seek advice, he said.