Here's a number that should make you sit up: around 1.6 million UK households are due to come off fixed mortgage deals in 2024. If that includes you, this could be the single most important financial move you make this year. Do nothing, and you could find yourself dropped onto your lender's Standard Variable Rate (SVR) — which right now can be anywhere from 7% to 9%. That's potentially hundreds of pounds extra every single month. But the good news? With a little bit of planning, you can dodge that bullet entirely.
What Actually Happens When Your Fixed Deal Ends?
When your fixed rate period finishes, your lender doesn't just leave you be. They automatically move you onto their SVR — basically their default rate, and almost always their most expensive one. Think of it like a mobile phone contract rolling into a monthly deal when you forget to switch. Except with a mortgage, forgetting can cost you thousands. On a £200,000 mortgage, moving from a 2% fixed deal to an 8% SVR could add well over £500 to your monthly payments. Over a year, that's £6,000 more out of your pocket.
Start Looking Six Months Before Your Deal Ends — Yes, Really
Most people wait until their deal has already ended before they start shopping around. Don't be most people. Many lenders will let you lock in a new rate up to six months before your current deal finishes, with no obligation to complete until the time is right. That means you can grab a good rate today, and if rates drop further before you switch, you can simply go back and choose a better one. You've got nothing to lose by starting early, and potentially thousands of pounds to gain.
Here's what to do right now:
- Dig out your mortgage paperwork and find your exact end date.
- Check your current lender's renewal offers — they often send these out automatically, but don't assume their deal is the best one out there.
- Compare deals across the whole market, not just your existing lender.
Should You Fix Again, or Go Variable?
This is the big question everyone's asking right now. Fixed rates give you certainty — you know exactly what you're paying each month, no nasty surprises. Tracker and variable rate deals can be cheaper upfront, but they move with the Bank of England base rate, which means your payments could go up or down. If the idea of your monthly bill changing keeps you up at night, a fixed deal is probably right for you. If you've got a bit of financial wiggle room and you think rates might fall soon, a shorter fix or a tracker could save you money. The honest truth? Nobody knows for certain where rates are headed, so go with whatever lets you sleep soundly.
Don't Forget the Fees
A lower interest rate doesn't always mean a cheaper mortgage. Some deals come with arrangement fees of £999 or more. On a smaller mortgage, a fee-free deal with a slightly higher rate can actually work out cheaper overall. Always look at the total cost over the deal period, not just the headline rate. A good comparison tool will do this maths for you automatically — make sure you're using one.
Terry's Top Tips
- Diarise your end date today. Set a reminder six months before your deal ends so you're never caught off guard.
- Don't auto-renew with your existing lender without checking elsewhere first. Loyalty rarely pays in the mortgage world.
- Always compare the total cost, not just the rate. Factor in any arrangement fees, valuation fees, and cashback offers.
- Consider using a whole-of-market broker. They can access deals you won't find directly and do the hard work for you.
- If you're struggling, speak up early. Contact your lender before you miss a payment — there are protections available, but you need to ask.
The mortgage market can feel overwhelming, but you don't have to figure it all out on your own. At TrueSaver, we make it easy to compare mortgage deals in plain English, so you can see exactly what you could save before your current deal runs out. Take two minutes to explore your options at TrueSaver today — your future self will thank you for it.
