Fixed-Rate Mortgage Ending – What Are Your Next Steps?

Many homeowners choose a fixed-rate mortgage for peace of mind, knowing their repayments won’t change for a set period. But when your fixed term comes to an end, it can feel like a pivotal moment. Suddenly, your mortgage may revert to your lender’s standard variable rate (SVR), which is often higher. Acting early and understanding your options can save you both stress and money.

1. Understanding Your Options

Stay with your current lender
When your fixed term ends, your lender will usually move you onto their SVR. While this offers flexibility, SVRs are often higher than current market rates, which could increase your monthly payments.

Remortgage to a new deal
Switching to a new mortgage deal can secure a lower rate and better terms. Remortgaging allows you to lock in another fixed rate, a tracker, or even a discount rate, depending on your circumstances and market conditions.

2. Timing Is Crucial

Most lenders allow you to start the remortgaging process 3–6 months before your fixed term ends. Starting early gives you a wider choice of deals, avoids last-minute stress, and reduces the risk of paying higher rates.

3. Evaluate Your Financial Situation

Before making a decision, consider your current financial situation. Has your income changed? Are you planning to move or downsize soon? Are there early repayment charges on your existing mortgage? Reviewing these factors ensures you choose a solution that works long-term.

4. Rate Comparison and Market Trends

Mortgage rates fluctuate based on the Bank of England base rate and lender policies. Comparing deals from multiple lenders can help you find the most cost-effective option. Don’t just look at the interest rate – consider arrangement fees, product fees, and any potential exit charges from your current mortgage.

5. Seek Expert Advice

Navigating the end of a fixed-rate mortgage can be complex, especially if you’re self-employed, have multiple debts, or a high loan-to-value (LTV) mortgage. A mortgage adviser can help you explore the best options for your situation and guide you through the process smoothly.

Conclusion

The end of a fixed-rate mortgage doesn’t have to be stressful. By understanding your options, acting early, and seeking professional advice, you can secure a deal that suits your needs and potentially save thousands in interest.

Call to Action

Don’t wait until your fixed rate ends – contact Impact Specialist Finance today to explore your mortgage options and make sure you’re on the best deal for your circumstances.