The End of a Fixed Rate
When your fixed-rate period finishes, your mortgage doesn’t end. Instead, your lender will normally transfer you onto their standard variable rate (SVR).
The SVR is a rate set by the lender and can change over time.
In many cases, this rate is higher than fixed-rate deals available in the market.
What This Means for Your Monthly Payments
Moving onto the standard variable rate could mean your monthly payments increase.
This is why many homeowners review their mortgage before their fixed deal expires.
By arranging a new deal ahead of time, you can avoid automatically moving onto a higher rate.
What Are Your Options?
When your fixed deal ends, you generally have three options:
1. Switch to a new deal with your current lender
This is sometimes called a product transfer and may be a straightforward option.
2. Remortgage to a different lender
Switching lenders may give you access to different rates or products.
3. Stay on the standard variable rate
This offers flexibility but is usually the most expensive option long-term.
Why Planning Ahead Helps
Starting the process several months before your deal ends allows time to:
- Compare mortgage products
- Review your financial situation
- Secure a suitable new deal
It also reduces the risk of higher payments if your fixed rate expires before a new mortgage is arranged.
A Simple Mortgage Check Can Help
Many homeowners only review their mortgage when they absolutely have to. However, a quick review before your deal ends can make a big difference.
By exploring your options early, you can make a confident decision about what works best for you.
Contact us today on liam@go2-mortgages.co.uk
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The information contained within was correct at the time of publication but is subject to change
Your home may be repossessed if you do not keep up repayments on your mortgage.
