If your fixed-rate mortgage is due to finish soon, it’s important to know what happens next. Many homeowners who secured 2- or 5-year deals in recent years are now approaching the end of their fixed terms, and what you do next can make a big difference to your monthly repayments.
What Happens When a Fixed Rate Ends
When your fixed rate deal ends, your mortgage automatically moves onto your lender’s standard variable rate (SVR) unless you arrange a new deal. The SVR is usually higher than the fixed rate you’ve been paying, which means your monthly payments are likely to increase.
Lenders set their own SVRs, and they can change at any time, often following movements in the Bank of England base rate. For most homeowners, this uncertainty makes the SVR the least appealing option.
Why It’s Worth Planning Ahead
It’s a good idea to start looking at your options around six months before your current deal ends. This gives you time to compare rates, explore remortgage options, and avoid being automatically switched to a higher rate.
If you’ve built up equity in your home, you may also find that you now qualify for a better loan-to-value (LTV) bracket, opening the door to more competitive deals.
How a Mortgage Adviser Can Help
A mortgage adviser can review your current mortgage, explain what your lender is likely to offer when your deal ends, and compare that with options from the wider market. They’ll help you understand whether it’s better to stay with your existing lender or remortgage elsewhere.
At Worths Mortgage Advisers, we also take care of the timing, ensuring your new mortgage is ready to start as soon as your current one finishes, so there’s no gap or overlap in payments.
If you’d like to explore your options, take a look at our page on remortgages in Brentwood for more details on how switching can help reduce costs or release equity.
Understanding Your Choices
When your deal ends, you generally have three options:
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Stay on the SVR – simple, but usually the most expensive choice.
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Arrange a new deal with your existing lender – often called a product transfer, which can be quicker and require less paperwork.
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Remortgage with a new lender – may offer better rates or more flexibility, though it involves a new application.
A mortgage adviser can help you weigh up these options to find the one that best fits your goals.
Final Thoughts
If your fixed rate is ending soon, don’t wait until your lender switches you automatically. Reviewing your options early could save you a considerable amount of money over the life of your mortgage.
At Worths Mortgage Advisers, we make the process straightforward and stress-free, guiding you through your next steps with clear, personal advice.
Call us today on 07880 722052 or richard@worthsmortgages.co.uk to arrange your free initial consultation.
