What to do when your fixed rate mortgage is coming to an end

The end of your fixed-rate mortgage term can feel like reaching a crossroad with multiple paths to choose from. It’s a critical juncture that demands careful consideration and planning. 

This article aims to guide you through the process, helping you make an informed decision on the next steps to take when your fixed-rate period draws to a close. With the right approach, you can ensure that the transition is as smooth and beneficial for your financial situation as possible.

What does it mean if your fixed rate is coming to an end?

A fixed-rate mortgage offers the stability of knowing exactly how much you will pay each month for the duration of the fixed term, which typically lasts between two to five years, although it can be longer. 

As this period concludes, your mortgage will usually revert to the lender’s standard variable rate (SVR), which is often higher and more susceptible to fluctuations, affecting your monthly repayments. Recognising this impending change is the first step in preparing for what comes next.

What options do I have at the end of a fixed rate mortgage?

When your fixed-rate term is nearing its end, you have several pathways to consider. Each option has its benefits and drawbacks, and the best choice depends on your personal and financial circumstances, as well as your future goals.

Remortgaging to a new lender

Switching to a new lender might secure you a more competitive interest rate or a mortgage product better suited to your current needs. This process involves applying for a new mortgage to pay off your existing one. 

While this can lead to potential savings, it’s important to factor in any application fees, legal costs, and possible early repayment charges from your current lender.

Remortgage with your current lender

Often referred to as a product transfer, remortgaging with your existing lender can be a simpler process than switching to a new one. It may offer the convenience of less paperwork and no property valuation or legal fees. 

However, you might find that the rates available from your current lender are not as competitive as those offered elsewhere.

Switching to a new type of mortgage 

You might consider switching to a different type of mortgage, such as a variable or tracker rate. These products offer different benefits, such as lower interest rates or more flexibility. 

However, they also come with the risk of increased payments if interest rates rise. Weighing the pros and cons of each mortgage type against your financial situation and tolerance for risk is crucial.

Things to consider when your fixed rate mortgage is ending

A number of factors should influence your decision-making process as your fixed-rate term comes to an end.

Current and future interest rates

Anticipating the direction in which interest rates are headed can influence whether you choose a fixed, variable, or tracker mortgage. Economic forecasts can offer insights, but they are not always reliable. Consider your ability to cope with potential rate increases.

Financial goals and stability

Your long-term financial objectives, whether it’s to pay off your mortgage sooner or to reduce your monthly outgoings, should guide your choice. Additionally, your current financial stability and future earning potential are important considerations.

Fees and costs

Remortgaging can involve various fees, including exit fees, arrangement fees, valuation fees, and legal fees. Calculating these costs is essential to determine whether switching deals is financially beneficial in the long run.

Your credit score

Your credit score can significantly influence your ability to secure a competitive mortgage deal. A higher score may unlock lower interest rates, so it’s worth checking your credit report and improving your score before applying for a new mortgage.

Remortgage offers

The mortgage market is competitive, with lenders frequently introducing new deals. Regularly reviewing the market can help you identify opportunities to save money or find a mortgage product that better suits your needs.

Personal circumstances

Life events such as changing jobs, starting a family, or planning for retirement can impact your mortgage decisions. A flexible mortgage might be more appropriate if you anticipate significant changes in your financial situation.

FAQs about fixed rate mortgages coming to an end

Here are some common questions and answers about fixed rate mortgages coming to an end:

What happens when my fixed-rate mortgage ends?

Your mortgage will usually switch to your lender’s SVR, which could increase your monthly repayments. It’s a good opportunity to explore other mortgage options.

Can I renew my fixed-rate mortgage?

Yes, you can usually renew your fixed-rate mortgage by remortgaging. This could be with your current lender (product transfer) or by switching to a new lender.

What fees should I be aware of when remortgaging?

Look out for exit fees from your current mortgage, arrangement fees for the new mortgage, valuation fees, and legal fees. Sometimes, these can be offset by the savings from a lower interest rate.

How do I choose the best mortgage option after my fixed rate ends?

Consider your financial situation, future goals, and the current mortgage market. Comparing deals from different lenders and considering different types of mortgages can help you make the best choice.

The importance of getting professional advice before your fixed rate ends

Navigating the end of your fixed-rate period can be challenging, but Sett Mortgages is here to guide you through every step. Our experienced mortgage brokers and financial advisers offer personalised advice, ensuring you make informed decisions that align with your financial goals and circumstances.

Embracing proactive planning with Sett Mortgages helps secure your financial wellbeing and maintain stability in your homeownership journey. Remember, keeping up with mortgage repayments is crucial to avoid the risk of repossession, and our team is dedicated to helping you mitigate this risk.

For a smoother transition and tailored mortgage advice, contact Sett Mortgages today. Our experts are ready to assist you in securing your home’s future. Reach out to us via our contact page or give us a call to discuss your options and how we can support your next steps.

Your home or property may be repossessed if you do not keep up repayments on your mortgage.


  • Elliott Benson

    Meet Elliott, a seasoned mortgage broker with over nine years of experience in property, and the founder of Sett Mortgages. With a background as a sales negotiator and mortgage services manager, he is a trusted professional with extensive knowledge in all things mortgages. Elliott's empathetic approach and clear communication style make him an approachable expert, decoding the complexities of mortgages for clients from diverse backgrounds. He stays up-to-date with the latest trends and regulations, offering cutting-edge solutions tailored to clients' needs. Committed to their financial well-being, he guides them through the mortgage process, ensuring countless successful and satisfied clients. Elliott's passion extends beyond his practice; he's a prolific writer, sharing his knowledge and insights in industry publications and blogs. His mission is to empower others with the information they need to make sound financial decisions.

Your home or property may be repossessed if you do not keep up repayments on your mortgage.