Your fixed rate mortgage is coming to an end—what now? If you do nothing, you could find yourself paying far more than necessary. But with the right approach, you can secure a better deal, avoid unnecessary costs, and ensure financial stability for the future.

In this blog, we’ll walk you through exactly what happens when your fixed rate expires, the key steps you need to take, and how Save On Mortgages can help you remortgage seamlessly—all with free expert advice!

What happens when your fixed rate ends?

A fixed rate mortgage locks in your interest rate for a set number of years, typically two to five years. When this period ends, you’ll no longer be on your agreed-upon fixed rate. Instead, you will automatically move onto your lender’s Standard Variable Rate (SVR) unless you take action.

Why Does This Matter?

The SVR is usually higher than your fixed rate, meaning your monthly repayments could increase significantly. Example:

• Fixed rate: 2.5%
• SVR after fixed rate expires: 6%
• If your mortgage balance is £200,000 over 25 years:

• Fixed rate monthly payment: ~£897
• SVR monthly payment: ~£1,289
• Extra cost per month: ~£392
• Extra cost per year: ~£4,704

That’s a substantial increase! But by planning ahead, you can avoid this financial shock.   

Step 1: Start early – avoid paying more

Don’t wait until your fixed rate ends before taking action. The best time to start exploring your options is three to six months before your fixed rate expires.

Why plan ahead?

1. More time to secure a competitive deal – acting early allows you to compare different mortgage options and lock in a better rate before your current one expires.
2. Avoid paying the SVR – if your fixed rate ends before you secure a new deal, you could be stuck paying higher interest until a new mortgage is finalised.
3. Ensure a smooth process – remortgaging involves paperwork, affordability checks, and lender approvals, which take time. Starting early helps you avoid unnecessary stress.

Step 2: Explore your options – find the best mortgage deal to suit you

When your fixed rate mortgage is coming to an end, you generally have two main options:

1. Switch to a new deal with your current lender (product transfer)

Pros:

• Quick and easy—no new affordability checks
• No legal fees involved
• Less paperwork.

Cons:

• May not offer the best interest rates 
• Limited to deals from your existing lender.

2. Remortgage with a new lender

Pros:

• Often better interest rates than staying with your current lender
• More choice—compare deals from across the market
• Potential to borrow more or switch to a more flexible mortgage

Cons:

• Full application process required (affordability checks, valuation, legal work)
• Possible fees, such as valuation and legal costs

How Save On Mortgages helps: We compare both options to find you the best deal, factoring in not just interest rates but also fees, incentives, and your financial goals. And we do this at no cost to you!

Step 3: Calculate the costs of remortgaging

Remortgaging can come with costs, but the right deal can still save you money in the long run. Here’s what to consider:

1. Early repayment charges (ERCs)

Check if your current mortgage has an early repayment charge. If your fixed rate period has already ended, this likely won’t apply, but if you switch before the end of the term, there may be a penalty.

2. Valuation fees

Some lenders require a new property valuation, which may come with a fee. However, many lenders offer free valuations as part of their remortgage deals.

3. Arrangement fees

Some mortgage deals come with arrangement fees, typically ranging from £500 to £2,000. We help you assess whether a lower rate with a fee is worth it compared to a slightly higher rate with no fee.

4. Legal fees

If switching lenders, you may need a solicitor to handle legal work. However, many remortgage deals offer free legal services as an incentive.

Step 4: Speak to a no fee mortgage adviser – no fees, just expert advice

Navigating the mortgage market can be overwhelming, with thousands of deals to choose from and financial jargon to decode. That’s where a professional mortgage adviser comes in.

Benefits of using a mortgage adviser:

• Access to exclusive rates – Some mortgage deals are only available through brokers
• Time-saving – We handle all the paperwork and negotiations for you
• Unbiased advice – We compare the entire market, not just one lender
• No Cost to You – Save On Mortgages provides expert mortgage advice for free.

Why act now? Secure your best remortgage deal today

With the Bank of England recently lowering interest rates and further cuts expected in 2025, now is a great time to explore options for a more affordable mortgage. Acting early allows you to take advantage of any reductions in rates and lock in a competitive deal.

How Save On Mortgages can help:

• We assess your financial situation and future goals
• We compare thousands of mortgage deals to find the best fit for you
• We guide you through the entire remortgage process, ensuring a smooth transition
• We do all this for free—our advice costs you nothing!

Final thoughts – don’t overpay on your mortgage

If your fixed rate mortgage is ending soon, don’t leave things to chance. Planning ahead can save you thousands in unnecessary interest payments.

• Take action today and ensure you get the best deal possible.
  

Get the best remortgage deal – speak to one of our friendly advisers today!