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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