When a fixed rate ends, your lender moves you onto its standard variable rate. For most people that means a higher monthly payment. This guide covers what to do, and when.
What happens when your deal ends
Your fixed rate has an end date. After it, your mortgage moves to the lender's standard variable rate, which is usually higher than the fixed rates on offer and can change at any time. Nothing happens automatically to fix that: it's on you to act.
Three months out
Find your end date and any early repayment charge
Both are on your latest statement, or in your lender's app.
Decide what you want
The same mortgage at a new rate, to borrow more, or to consolidate other borrowing.
Tell a broker your situation
They can line up a new deal to start the day your current one ends.
Product transfer or remortgage?
A product transfer is a new rate with your current lender: less paperwork and no solicitor. A remortgage moves you to a new lender, which opens up more rates but takes longer. A broker will say which suits your case, and can arrange either.
Early repayment charges
If you leave before the end date you usually pay a charge, often a percentage of the balance. Sometimes it's worth paying; often it isn't. The answer depends on the rate you'd move to and how long is left. A broker can run the figures with you.
If your current rate is lower than anything available now, staying put can be the right answer. A broker will tell you.
What a broker will ask you
- Your lender, the balance and the end date
- Roughly what your home is worth
- Your income, and how you're paid
- What you want to do