Reaching the end of a fixed-rate mortgage can feel like a big moment. Your payments may change, your interest rate could increase, and you’ll need to decide what to do next.
For many people, the shift can be noticeable. Moving from a fixed deal to a higher rate could mean paying more each month, sometimes by a significant amount. That’s why it’s important to understand your options early and avoid being caught off guard.
The Knowledge Round-Up
When your fixed-rate mortgage ends, you usually move onto your lender’s standard variable rate (SVR)
SVR rates are often higher and can change over time
Your monthly payments may increase once your fixed deal ends
You can stay, switch deals with your existing lender, or remortgage
Early repayment charges (ERCs) may apply if you switch before your fixed term ends
It’s a good idea to review your options a few months before your deal ends
Your credit profile can affect the mortgage rates available to you
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Fixed-rate vs Standard Variable Rate (SVR)
With a fixed-rate mortgage deal, your interest rate stays the same for a set period, often between 2 and 5 years. That means your monthly payments stay predictable during that fixed-rate term.
Once that fixed-rate mortgage ends, you’ll usually be moved onto your lender’s standard variable rate (SVR). Here’s how they compare:
Feature | Fixed-rate | Standard variable rate |
Interest rate | Stays the same for the fixed rate period | Can change at any time |
Monthly payments | Predictable and stable | Can go up or down |
After deal ends | Ends after fixed term | You’re usually moved onto this |
Who controls the rate | Agreed at the start | Set by your lender |
Link to market rates | Fixed for the term | Often influenced by the Bank of England base rate |
Typical cost | Often lower during the deal | Usually higher than fixed deals |
What Options Do I Have When My Fixed-rate Mortgage Ends?
When your fixed-rate mortgage ends, you don’t have to stay on the same deal. You have a few different options depending on your circumstances and financial goals.
Option 1: Stay on the standard variable rate (SVR)
You’ll automatically move onto your lender’s standard variable rate if you do nothing.
Pros:
No action needed
Flexible, no long-term commitment
No arrangement or switching fees
Cons:
Usually higher interest rates
Monthly payments can increase
Rates can change at any time
Option 2: Remortgage to a new lender
Remortgaging means switching your existing mortgage to a new lender.
Pros:
Access to a wider range of mortgage rates
Potential to reduce monthly payments
Option to fix your rate again
Cons:
May involve credit checks
Legal and valuation fees may apply
Can take longer to arrange
Option 3: Switch deals with your existing lender
This is what’s known as a product transfer. You’ll switch onto a new deal with your current lender instead of switching elsewhere.
Pros:
Usually quick and straightforward
Often fewer checks required
No need to change lender
Cons:
Limited to your lender’s available deals
May not offer the most competitive rates
Less flexibility than switching providers
When Should You Review Your Options?
It’s usually a good idea to start looking at your options around 3 to 6 months before your fixed-rate mortgage ends.
This gives you time to:
Compare available mortgage rates
Understand any fees involved
Decide whether to stay, switch or remortgage
Planning ahead can help you avoid moving onto higher SVR unnecessarily.
Costs to Consider at the End of a Fixed-rate mortgage
Switching deals or remortgaging can add up, so it’s important to weigh these costs against any potential savings.
You should factor in costs like:
Arrangement fees
Valuation fees
Legal fees
Early repayment charges
Can You Remortgage When on a Fixed-rate?
Yes, but timing matters! You can remortgage before your fixed period ends, but you may need to pay early repayment charges (ERCs). These can be a percentage of your remaining balance and may increase the earlier you leave your deal.
Many people start comparing deals a few months before their fixed rate ends so they can switch without paying ERCs.
Does Your Credit Score Affect Remortgaging?
Yes, your credit profile can influence the mortgage deals available to you, especially if you’re switching lenders.
Lenders may look at:
Your repayment history
Your current financial commitments
Your overall borrowing
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What Should I Do at the End of My Fixed-rate Mortgage?
The end of your fixed-rate mortgage is a natural point to review your deal and make sure it still works for you. Taking time to compare options, understand costs, and check your financial position can help you avoid paying more than you need to.
CreditKnowledge is a credit broker, not a lender.
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