When a fixed mortgage deal comes to an end, the mortgage itself does not disappear. You still owe the remaining balance, but the interest rate you pay can change. If you have not arranged another deal, your lender will normally move you onto its reversion rate, often a standard variable rate (SVR). That can mean a noticeable jump in monthly repayments, especially if your old fixed rate was much lower.
If you plan to remortgage after a fixed rate ends, you can move to a new lender, while switching to another deal with your existing lender is usually called a product transfer. The right choice depends on the rates available, fees, your remaining balance, property value and whether your circumstances have changed since you last applied.
What actually happens when your fixed mortgage ends?
Your fixed rate applies only for the agreed introductory period, such as two, three or five years. When that period expires, the mortgage continues under the terms set out in your agreement. In many cases, the next rate is the lender’s SVR or another reversion rate.
A standard variable rate is set by the lender and can change. It is not the same as the Bank of England base rate, although wider interest-rate conditions can influence pricing. An SVR may also be higher than new mortgage rates available to eligible borrowers.
If your fixed mortgage ending date is approaching, you do not usually need to wait until the final day before acting. Starting the review around six months beforehand gives you time to compare options and arrange a new mortgage deal to begin when the existing fixed period finishes.
Can you remortgage as soon as the fixed rate ends?
Yes. Once the fixed period has ended, any early repayment charge linked to that deal will normally have expired too, although you should check your mortgage offer because terms vary. If you are already on the lender’s SVR, you can generally apply to remortgage without waiting for another fixed period to pass.
You can also arrange the next mortgage before the old fixed rate expires. Current UK guidance suggests reviewing options around six months before the end date, giving you time to line up a switch after any early repayment charge ends.
What happens during a remortgage?
A remortgage to a different lender is a new mortgage application. The lender will usually assess your income, regular commitments, credit history, remaining balance and the value of your home. It may also arrange a valuation. If approved, the new mortgage pays off the old lender and you continue repayment under the new product’s rate, term and conditions.
Staying with your current lender can be simpler. A product transfer may involve fewer checks, and eligible borrowers who are up to date with payments may be able to switch to another deal with their existing lender without a fresh affordability assessment. That does not automatically make it the cheapest option, so compare the total cost.
Related reading opportunities for this topic include how remortgaging works, loan-to-value explained and mortgage affordability.
Why the monthly payment can change sharply
Consider a simple example. If you have £180,000 remaining on a repayment mortgage with 20 years left, a rate of 2.5% would mean a payment of roughly £954 a month. At 5%, the same balance and term would be roughly £1,188 a month. That is about £234 more each month.
This is only an illustration, not a mortgage quote. Your payment depends on your balance, term, repayment type and the rate offered to you. It does show why the end of a fixed deal is a useful trigger to review your mortgage instead of allowing the change to happen unnoticed.
Should you stay with your current lender or switch?
Staying with the same lender
A product transfer can be convenient, particularly if your circumstances have changed and a full application elsewhere may be harder. There may also be less paperwork. Still, compare the rate, product fee and overall cost.
Moving to a new lender
Switching lenders can open up a wider range of products. It may be worthwhile if another lender offers a meaningfully lower rate or a deal that better suits your plans. Compare more than the headline rate: arrangement fees, valuation costs, legal costs, incentives and the length of the deal can all affect the total price.
When remortgaging may not save you money
A lower interest rate does not automatically mean a better deal. If your mortgage balance is small, a large product fee can wipe out much of the saving. Your options may also narrow if your property’s value, income or credit profile has changed.
Your loan-to-value ratio matters too. If your home has risen in value or you have paid down a substantial part of the balance, you may qualify for different pricing. Limited equity or negative equity, by contrast, can restrict the deals available from new lenders.
What if your fixed rate has already ended?
If you are already paying the standard variable rate, you have not missed your chance. Check what your current lender can offer, then compare it with deals from other lenders. Focus on the total cost over the period you expect to keep the deal, not simply the lowest advertised rate.
If the higher payment is causing difficulty, contact your lender early. Simply speaking to a lender about support does not by itself damage your credit file. The options available depend on your circumstances, so asking for help before missing payments can give you more room to act.
FAQ
Do I have to remortgage when my fixed rate ends?
No. If you do nothing, your mortgage normally continues on the lender’s reversion rate, often its SVR. Remortgaging or taking a product transfer is optional, but reviewing the alternatives can show whether you could reduce the cost or gain more certainty.
How early should I look for a new mortgage deal?
Around six months before your fixed deal ends is a sensible starting point. That gives you time to compare your current lender’s options with the wider market and, where available, secure a rate in advance.
Will I pay an early repayment charge?
Possibly, if you leave your existing fixed deal before the charge period expires. If the fixed rate has already ended, the charge attached to that fixed period will usually have finished, but always check your mortgage terms before switching.
Is a product transfer the same as remortgaging?
Not quite. A product transfer means moving to another mortgage product with your existing lender. Remortgaging usually means replacing your mortgage with one from a different lender. Comparing both can give you a clearer picture of the available costs and rates.
Plan the switch before the SVR becomes the default
The end of a fixed rate is a decision point. Your mortgage continues, but the rate and monthly cost may change automatically if you take no action. Reviewing your options early lets you compare a product transfer with a full remortgage, account for fees and choose a deal that fits your current finances instead of simply accepting the lender’s default rate.
