If your fixed rate mortgage is ending, start by checking the exact end date, your outstanding balance and what happens when the fixed period finishes. You can then compare staying with your current lender against remortgaging to another lender.
If you take no action, you will normally move onto the follow-on rate set out in your mortgage agreement, which is commonly the lender’s standard variable rate (SVR). Unlike your fixed rate, an SVR can change.
You do not necessarily need to wait until your fixed rate has finished before reviewing your options. The right time to act depends on your existing mortgage, any early repayment charges and how far in advance a lender will let you secure a new deal.
If you are approaching your end date, our remortgage advice service can help you compare the options available rather than automatically staying with your existing lender.
What Happens When A Fixed Rate Mortgage Ends?
A fixed rate gives you an agreed interest rate for a specified period. When that period ends, the mortgage itself does not normally end. You still owe the outstanding balance and continue making repayments.
Unless you arrange another deal, you will normally move onto the follow-on rate specified by your lender. This is commonly an SVR.
Your new monthly payment will depend on the rate that applies, your outstanding balance and the remaining mortgage term. An SVR may be higher or lower than the rate you have been paying, so check the actual figures rather than assuming how your payment will change.
Your mortgage documents or lender can confirm your fixed rate end date and the rate that applies afterwards.
When Should I Start Reviewing My Mortgage?
You can start reviewing your options before the fixed rate ends. MoneyHelper recommends starting to shop around at least six months before a current fixed or discounted deal reverts to the lender’s SVR.
That does not mean every mortgage can be arranged exactly six months in advance. Offer periods and product transfer windows vary, so the dates need to be checked for the lender and product you are considering.
Starting early gives you time to compare your current lender’s options with mortgages available elsewhere. A remortgage to another lender may also involve an affordability assessment, valuation and legal work, which can take time.
The date your existing deal ends is particularly important if an early repayment charge applies. Switching too soon could trigger a charge, so check the terms of your current mortgage before choosing a completion date.
What Are Your Options When A Fixed Rate Mortgage Ends?
For most homeowners approaching the end of a deal, the main options to investigate are remaining on the contractual follow-on rate, taking another product with the existing lender or remortgaging to a different lender.
Staying On Your Lender’s Follow-On Rate
Doing nothing will usually mean moving onto the rate specified in your existing mortgage agreement, commonly the lender’s SVR.
This avoids immediately arranging another fixed or variable deal, but you should check the rate and expected monthly payment before deciding whether remaining on it suits you.
An SVR can change, so your payments could change in the future. Moving onto an SVR is therefore something to consider as part of a wider comparison rather than simply allowing your existing deal to expire without reviewing the consequences.
Taking A Product Transfer
A product transfer means moving onto another mortgage product with your existing lender rather than changing mortgage provider.
It can involve a different process from remortgaging to another lender. The checks required depend on the circumstances and lender, so you should not assume that every product transfer is automatically available or that no checks will be needed.
When comparing a product transfer, look at the new interest rate, monthly payment, product fees and any early repayment charges or other restrictions attached to the new deal.
Remortgaging To Another Lender
Remortgaging usually means replacing your current mortgage with a new mortgage from another lender.
A new lender will assess whether you meet its eligibility and affordability requirements. The property may also need to meet its lending criteria and a valuation can form part of the process.
Changing lender can also involve product, valuation, legal or administration costs depending on the mortgage. Some products may include incentives towards certain costs, but these vary.
The lowest advertised interest rate is therefore not necessarily the lowest-cost option for your circumstances. Fees and the cost over the period you expect to keep the mortgage should form part of the comparison.
Should I Remortgage Before My Fixed Rate Ends?
You can investigate and potentially arrange your next mortgage before your current fixed rate expires, but the timing of the actual switch matters.
Check whether your existing mortgage has an early repayment charge and when that charge stops or reduces. MoneyHelper advises checking existing deal charges before switching because an ERC can affect whether changing early makes financial sense.
You should also confirm how long any new mortgage offer remains valid. There is no single offer window that applies to every lender.
Working backwards from your fixed rate end date can help. Allow time for the application and any required valuation or legal work while making sure the proposed completion date works with your existing mortgage terms.
Product Transfer Or Remortgage: Which Is Better?
Neither route is automatically better.
Your existing lender may have a suitable product transfer available. Another lender may offer a mortgage that appears more attractive, but changing lender can involve different eligibility requirements and additional costs.
A useful comparison should consider the rate, expected monthly payment and fees. You should also look at early repayment charges on the new product and whether its features suit your plans.
For example, a lower interest rate with a substantial product fee could cost more over the period you intend to keep the deal than another mortgage with a slightly higher rate and a lower fee. MoneyHelper similarly recommends considering charges and interest rates together when comparing remortgage options.
Your remaining mortgage balance matters as well because fees can have a different impact depending on how much you still owe.
Check Whether Your Circumstances Have Changed
Your financial circumstances may be different from when you arranged your current fixed rate.
A new lender will assess the application using its current criteria. Changes to your income, debts or credit history could therefore affect the mortgages available to you. Your property’s current value can also matter because it affects your loan-to-value ratio. This compares the amount you owe with the property’s value.
Think about your future plans too. If you expect to move home soon, consider the implications of committing to another deal that carries early repayment charges. Some mortgages may be portable, but porting remains subject to the lender’s terms and any required assessment when you move.
If you are approaching retirement during the proposed mortgage term, your income and the lender’s criteria may also need additional consideration.
What Should I Have Ready For a Mortgage Review?
Before reviewing your options, gather the information that explains your existing mortgage and current finances.
Useful details include your outstanding mortgage balance, current interest rate, fixed rate end date and remaining mortgage term. Check your mortgage documents for any early repayment charge and the dates on which it changes or ends.
You should also have an up-to-date understanding of your household budget. If the available deals would increase your monthly mortgage payment, consider how that payment would fit alongside your regular expenditure and other financial commitments.
If your income, borrowing or household circumstances have changed, tell your mortgage adviser. Accurate information allows them to assess the options based on your current position.
What If My Fixed Rate Has Already Ended?
If your mortgage deal has already ended and you have moved onto your lender’s SVR or another contractual follow-on rate, you can still review your options.
Check what rate you are currently paying and whether any restrictions or charges apply before switching. You can then compare the products available from your existing lender with remortgage options elsewhere.
There is no need to assume that one route will automatically reduce your payments. The available products, your circumstances and the costs of switching all need to be considered.
If a higher mortgage payment is causing financial difficulty, contact your lender as early as possible to discuss your circumstances. MoneyHelper also recommends speaking to your lender or a mortgage broker if you are worried about rising mortgage costs.
How Can Key Mortgage Advice Help?
Reviewing a fixed rate mortgage involves more than finding the lowest headline interest rate. The costs, lender criteria and features of the mortgage all affect whether a particular option is suitable.
Key Mortgage Advice can provide personalised remortgage advice, review your circumstances and compare options available across the market. Our advisers can also compare these with relevant options from your existing lender and support you through the mortgage process where you decide to proceed.
An adviser cannot guarantee that remortgaging will save you money or that a particular lender will accept an application. The aim is to compare the available routes using your actual mortgage and circumstances.
A Simple Fixed Rate Ending Example
Consider a homeowner whose fixed rate is due to finish in several months. They have an outstanding mortgage balance and an early repayment charge that applies until a specified date.
They could compare the follow-on rate with a product transfer from their existing lender and suitable remortgage products elsewhere. Their comparison would include the expected payments, fees and any charges for leaving the current mortgage early.
They could then plan the timing of any switch around the terms of the existing mortgage and the validity of the new offer.
This is a hypothetical example rather than a Key Mortgage Advice client case. Actual products, costs and eligibility depend on individual circumstances and lender criteria.
Review Your Mortgage Before Your Fixed Rate Ends
If your fixed rate mortgage is ending, find your end date and current balance first, then check any early repayment charges. From there, you can compare your lender’s follow-on rate and product transfer options with remortgaging elsewhere.
Starting the review before the end date gives you time to understand the choices available without assuming that you need to switch immediately.
You can call us on 01772 620000 to discuss your existing mortgage or book an appointment with a mortgage adviser to review your options.
This article provides general guidance, not personal financial, legal or tax advice. Lending criteria, product terms and eligibility vary. Seek advice based on your circumstances.
Fixed Rate Mortgage Ending FAQs
What happens when my fixed rate ends?
If you do not arrange another mortgage deal, you will normally move onto the follow-on rate specified in your mortgage agreement, commonly your lender’s SVR. Check your mortgage documents or ask your lender to confirm the rate and expected payment.
When should I start reviewing deals?
MoneyHelper recommends starting to shop around at least six months before a fixed or discounted deal reverts to the lender’s SVR. The period in which you can secure a particular product varies, so check the relevant lender’s current offer window.
Is a product transfer the same as remortgaging?
No. A product transfer means switching to another mortgage product with your existing lender. Remortgaging generally means replacing your current mortgage with one from a different lender.
Can I secure a deal before my current one ends?
Potentially. How far in advance you can arrange a new deal depends on the lender and product. You should also check when your existing early repayment charge ends and how long the new mortgage offer remains valid before deciding when to switch.
