Fixed Rate Ending Soon? What You Should Do Next

For many homeowners, the end of a fixed-rate mortgage can come around faster than expected. If your fixed-rate deal is due to end within the next six months, now is the ideal time to start planning your next move. Taking action early could help you avoid unnecessary costs and ensure your mortgage continues to meet your needs and circumstances.

In this guide, we'll explain what happens when your fixed rate ends, the options available to you, and how to make an informed decision.

What Happens When Your Fixed Rate Ends?

When your fixed-rate mortgage comes to an end, your lender will typically move you onto their Standard Variable Rate (SVR). The SVR is set by the lender and can change at any time.

In many cases, the SVR is higher than the fixed rate you've been paying, meaning your monthly repayments could increase significantly. For some borrowers, this can come as an unwelcome surprise, particularly if household budgets are already stretched by rising living costs.

The good news is that you don't have to wait until your deal actually ends before exploring your options.

Start Looking Early

Most lenders allow borrowers to secure a new mortgage deal up to six months before their current fixed rate expires.

By reviewing your options early, you can:

• Avoid being moved onto a potentially higher SVR.

• Lock in a new rate if there are concerns about future rate increases.

• Give yourself time to consider all available options.

• Ensure any paperwork or valuation requirements are completed without unnecessary pressure.

Even if your current lender offers a competitive product transfer, it is worth checking the wider market to see what alternatives may be available.

Option 1 – Stay With Your Current Lender

Many lenders offer existing customers the opportunity to switch to a new deal without a full remortgage process. This is often known as a product transfer.

Benefits can include:

• Minimal paperwork.

• No legal work required.

• Faster processing times.

• Potentially no affordability reassessment.

This can be an attractive option if your circumstances have changed since you originally took out your mortgage, or if you simply want a straightforward solution.

However, it is important to compare the available rates and fees against other lenders before making a decision.

Option 2 – Remortgage to a New Lender

A remortgage involves moving your mortgage to a different lender.

This may be worth considering if:

• Another lender offers a more competitive rate.

• You want access to different mortgage features.

• You need to borrow additional funds.

• Your current lender's products are no longer suitable.

While a remortgage may involve valuation and legal work, many lenders offer incentives such as free valuations and legal services to help reduce the cost of switching.

The potential savings over the course of a fixed period can often outweigh any fees involved.

Option 3 – Review Your Mortgage Term

The end of a fixed rate also provides an ideal opportunity to review your mortgage term.

You may choose to:

• Shorten the term to become mortgage-free sooner.

• Extend the term to reduce monthly payments.

• Make overpayments if your finances allow.

A mortgage review is about more than simply finding the lowest rate. It is about ensuring your mortgage remains aligned with your financial goals and lifestyle.

Consider Your Wider Financial Plans

When reviewing your mortgage, it is worth thinking about any significant life events that may be approaching, such as:

• Retirement.

• Moving home.

• Family changes.

• Career changes.

• Major home improvements.

These factors could influence the type of mortgage that is most suitable for you.

For example, someone planning to retire within the next few years may have different priorities from a borrower focused solely on achieving the lowest possible monthly payment.

Don't Leave It Until the Last Minute

One of the biggest mistakes borrowers make is allowing their fixed rate to expire without a plan.

Even a few months on a lender's Standard Variable Rate could cost hundreds or even thousands of pounds more in interest than necessary.

Starting the conversation early gives you more choices, more time, and potentially greater savings.

Ready to Review Your Mortgage?

If your fixed-rate mortgage is ending within the next six months, now is the perfect time to start exploring your options.