Alexander Hall has found that homeowners coming to the end of their fixed-term mortgages could save enough from lower rates to pay for the next three Christmases.
The research looked at how much borrowers on a 2-year fixed-rate deal from October 2023 would pay if they remortgaged now.
Two years ago, the average UK house price was £260,129.
With a 15% deposit, buyers needed a £221,110 mortgage.
On a 2-year fixed rate at 5.94% over 25 years, monthly repayments were £1,417.
Now, someone remortgaging in October 2025 would owe £212,925.
The average 2-year fixed rate has dropped to 4.33%.
With 23 years left, Alexander Hall found that this brings monthly repayments down to £1,220, a saving of £196.89 each month, or 13.9%.
Additionally, Alexander Hall found households usually spend £2,460 a month, rising to £3,173 in December, so Christmas means an extra £713 in spending.
The £196.89 saved each month adds up to £2,362.68 a year, which more than covers the extra cost of Christmas for three years.
Richard Merrett, managing director at Alexander Hall, said: “Last week’s decision to hold the base rate may have dampened the enthusiasm of some homeowners approaching the end of their fixed term, but the truth is that we’ve already seen notable improvements across the mortgage landscape in recent months, giving borrowers plenty of reason for early Christmas cheer.
“The average remortgager today is saving close to £200 a month on repayments compared to those locking in two years ago.
“While that might not soften the impact of this year’s Christmas spending, it will certainly make a meaningful difference to their household finances when next December rolls around.”
Merrett added: “Of course, with one last base rate decision from the Bank of England due in December, there’s still a chance that Father Christmas could deliver a further mortgage market boost before the year is out.
“However, as we head towards 2026, we’re already seeing growing mortgage affordability help to restore stability and confidence across the property market and, once the dust has settled on the Autumn Budget, this positive momentum is only likely to increase further.”
