What happens when my fixed-rate mortgage ends?

Quick answer: When your fixed rate ends, your mortgage provider will put you on their standard variable rate (SVR), which is often expensive. Switching to a new mortgage may help you get a better rate and save money. It’s worth preparing months ahead — give yourself time to find the right deal, tidy your finances and get your credit report in shape.

When you have a fixed-rate mortgage, the interest rate stays the same for a set period — it’s common to find two-year and five-year fixed mortgages, for example. But what happens when your fixed-rate mortgage ends?

If you don’t find another deal, your provider will move you to their standard variable rate (SVR). This is likely to be a higher rate than your current fix. As well as often being expensive, SVRs are ‘variable’. This means your rate can go up or down, making your monthly payments less predictable.

Switching to a new mortgage at the end of your fixed term may help you get a better deal. In some cases, switching could save you £1,000s.

You’ll need to pass affordability and credit checks to get approved. So, it’s worth tidying up your finances and credit if your fixed mortgage deal is coming to an end soon. Check your free score and search mortgages with Experian to see what you could save. Searching with us will never affect your score.

What to do when your fixed-rate mortgage ends

There are usually two main options when your mortgage deal is coming to an end. You can do nothing, which means you’ll automatically move to the provider’s standard variable rate (SVR). Or you can remortgage to a better deal after your fixed-term mortgage ends.

Remortgaging when your fixed-term ends can be an opportunity to:

• Get a lower rate. A new fixed mortgage will often give you a better rate than your lender’s SVR, which could help you save money.
• Protect yourself from rate rises. Getting a new fixed rate gives you peace of mind that your payments will stay the same for a while.
• Add to your deposit. You may get a lower rate than you started with by switching to a smaller mortgage with a larger deposit. The mortgage you’ve paid off so far will count towards the ‘deposit’ when you remortgage.
• Benefit from your home’s value. Lenders may offer you better rates if the value of your home has gone up. This is because the percentage of your home’s price that is covered by your mortgage loan will have gone down. A lower percentage means less risk for the lender.
• Borrow cash from your mortgage. Some people borrow more than the value of their home to fund home improvements or consolidate debt. Remortgaging is just one way to borrow against your home.
• Change your mortgage type. For example, you may want to switch to an offset mortgage which links to your savings for a better rate. Or an interest-only mortgage, where you just pay the interest each month until the end of the mortgage term.

Fixed mortgage ending soon? See what you could save by comparing the best mortgage deals with us. Simply fill in a few details to see the top offers from 100+ trusted lenders. It’s free, only takes a minute and won’t affect your score. Your current lender can’t see if you search for new deals.

When is it a bad idea to remortgage?

Many people remortgage after their fixed term ends — but switching isn’t right for everyone. If you’re moving home soon or about to pay off your mortgage in full, the costs of remortgaging may not be worthwhile. So, it might make sense to accept your lender’s SVR for now.

There’s also little point remortgaging if you can’t find a better deal. Getting approved for a lower rate can be hard if you have bad credit or if your income has dropped. If this is the case, consider taking time to improve your situation before you remortgage. If you’re worried about paying a higher rate, take a look at MoneyHelper's guide to mortgage rate rises

If there’s only a small amount left on your mortgage (like £50k or less), you’re unlikely to find a new mortgage of this size. Consider overpaying your mortgage if you can afford it — you’ll pay less interest overall and there are no early repayment fees on an SVR.

How to remortgage after your fixed term

If you remortgage with a different lender, your new lender will pay off your old mortgage with the new one. You’ll need a solicitor to manage the transfer, who will ensure it happens when your fixed-rate mortgage ends. If you leave your current mortgage during the fixed term, you’ll usually have to pay an early repayment fee.

Be aware that when you apply for a mortgage it normally takes two to six weeks to get approved. But you can secure a remortgage offer from a new lender in advance. Some lenders will let you lock in your new deal up to six months before the payments start.

How should I get ready for when my fixed-rate mortgage ends?

If your fixed mortgage deal is coming to an end, you might be thinking about switching to a new one. Getting ready early can help you find better deals and improve your chances of being accepted. Here are some steps to help you remortgage when your fixed term ends.

Decide on your criteria for a remortgage

As with your original mortgage, you need to think about:

• How much you can borrow
• The type of mortgage and mortgage interest rate you want
• How long the mortgage and the fixed term should be
• What monthly mortgage payments you can afford
• The costs of getting a mortgage, like surveyor and arrangement fees

Get clear on your reasons for remortgaging. This should help you weigh up new deals and decide if they’re right for you.

Find a better deal before your fixed-term ends

Start comparing mortgages up to six months before your fixed-term mortgage ends. Comparing is free and won’t affect your credit score, so do it as often as you like! Lenders usually let you lock in a new deal three to six months before the payments start.

Some people remortgage with their current provider. This can make the remortgaging process quicker and cheaper, as they already have some of the information they need. But you may lose money in the long run if there are better deals with other providers.

If you need specialist advice, consider using a mortgage broker. Just be aware, some brokers have fees and some don’t search the full mortgage market.

Boost your chances of getting the best remortgage deal

Lenders run strict checks on affordability and credit scores for a mortgage. Here are some steps to boost your chances of approval:

• Check your credit score and report. Your report is free on the Experian app. Your score reflects how lenders see the information on your report. Learn what affects your score to see if there’s anything you can improve.
• Stick to a budget. Try to avoid any large expenses in the months before your mortgage application. Keep your income steady if you can.
• Avoid new borrowing. Credit applications leave a hard credit search that lowers your score, so avoid them close to your mortgage application if possible. Also, try not to use a large part of your credit card limit or overdraft.
• Pay down credit cards. If you can afford to pay off some of your credit card balance, you should see your score go up. This is just one way to improve your score.

Consumer Expert

Our expert says

Remortgaging can help you keep costs down. Plan early to avoid an expensive SVR mortgage when your fixed term ends. Remember to give your credit score some attention — a higher score can help you get a lower interest rate. John Webb, Experian UK

Frequently Asked Questions

Can I remortgage after a fixed term?

Yes. Many people remortgage when their fixed term ends to get a better deal and avoid moving onto their lender’s standard variable rate. There are no early repayment fees if you remortgage after your fixed term ends.

How do I prepare for remortgaging after my two-year fixed rate ends?

Start comparing deals several months in advance, see if there’s room to improve your credit score, and avoid taking out new credit or overspending. This should help you find the right deal and boost your chances of acceptance.

Should you remortgage after a fixed term?

It usually makes sense to remortgage if you can get a lower rate or more suitable mortgage. If you can’t get approved for a better deal, you may want to stay with your current lender — although you’ll have to pay their standard variable rate.

What happens if I’m remortgaging and I’m self-employed?

It’s still possible to get a mortgage when you’re self-employed. Lenders may want to see evidence of two or more years of income. They may ask for accounts prepared by a qualified accountant, SA302 forms or a tax year overview from HMRC. A steady income and good credit score should help you get a better rate.

What happens if I need to remortgage while I’m on maternity leave?

Maternity leave doesn’t need to stop you from remortgaging. Many lenders will consider your return-to-work income instead of your maternity pay, especially if you can show a confirmed return date. You may find approval easier i f you’re returning within the next few months and you have a clear history of employment.

How easy is it to remortgage?

Switching mortgages can be straightforward, especially if you have stable finances and a good credit score. A solicitor can help manage the transfer if you’re moving to a new lender. Remortgaging with your current lender can be quicker, but they may not offer the best deal. To make it easier to remortgage, give yourself 6 months to compare mortgages, improve your score and tidy your finances. Lenders may let you secure a deal 3 to 6 months before the payments start.

Can I remortgage before the end of my fixed term?

Yes, but you’ll usually have to pay an early repayment charge (ERC) for remortgaging before the end of your fixed term. Sometimes, moving to a lower rate earlier could save you more than you lose from the early repayment term — but this won’t always be true.

How soon can you remortgage before your fixed rate ends?

You’ll normally pay an early repayment charge if you leave your mortgage before the fixed term ends. But it’s fine to apply for a new mortgage in advance. Lenders often let you secure a new deal three to six months before the payments begin. This allows you to start a new mortgage as soon as your current fixed-term ends.

Do you have to remortgage after a fixed term?

No, you don’t have to remortgage after a fixed term. But if you don’t switch, your mortgage will move onto your lender’s standard variable rate (SVR). SVRs are often higher and can change at any time, which may increase your monthly payments.

Can I remortgage with the same lender?

Yes, you can remortgage with the same lender — this is sometimes called a product transfer. It can be quicker and simpler than switching lenders, as you may not need a full affordability check or solicitor. The downside is that your current lender may not offer the best rate available, so it’s still worth comparing mortgages before deciding.

What is the cost of remortgaging with the same lender?

The upfront cost of remortgaging with the same lender is often lower than switching lenders. There may still be an arrangement fee, often between £1,000 and £2,000. But you may save on legal fees which are normally about £2,000. Also, you may avoid valuation fees which are usually between £150 and £800 depending on the property — though a new lender might cover this cost. Remember, a new lender may help you save more in the long run if they offer a lower interest rate.

Get remortgage-ready with a free Experian account

A higher credit score means lenders are more likely to approve you for a remortgage. Check your free score and report with Experian. We show what affects your score and tips to improve it. You can even track your progress over time. Register or log in to get started.

Find your best mortgage offers with Experian

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