Right now, hundreds of thousands of UK families are waking up to a genuinely scary letter from their mortgage lender. Their fixed rate deal is ending. And when it does, many will be automatically moved onto their lender's Standard Variable Rate — which can be 2% to 3% higher than what they're currently paying. On a £200,000 mortgage, that could mean paying £200 to £300 more every single month. That's up to £3,600 a year disappearing from your family budget. The good news? You don't have to let that happen. Here's exactly what to do.
What Actually Happens When Your Fixed Deal Ends?
When your fixed rate mortgage finishes, your lender doesn't just leave you floating — they move you onto something called a Standard Variable Rate, or SVR. Think of it as the mortgage equivalent of an out-of-contract mobile phone tariff. It's nearly always the most expensive option your lender offers, and they can change it whenever they fancy. You haven't done anything wrong — it's just how the system works. The lender is basically hoping you'll be too busy or confused to do anything about it. Don't be that person.
The critical thing to understand is that you have options, and the window to act starts earlier than most people realise. Most lenders will let you lock in a new deal up to six months before your current deal expires, without paying any early repayment charges. That means if your deal ends in October, you could be sorting this out right now in April.
Should You Remortgage With a New Lender or Stay Put?
This is the big question, and the honest answer is: always check both options. Your existing lender will often offer you a 'product transfer' — a new fixed deal without the full application faff. It can be quick and sometimes competitive. But here's the thing — it isn't always the best rate out there. By shopping around with other lenders, you might find a deal that saves you a meaningful amount each month.
If you go to a new lender, you'll usually need to go through a full affordability check again. That sounds daunting, but a good mortgage broker will hold your hand through the whole thing. Speaking of which — using a fee-free, whole-of-market mortgage broker is one of the single best things you can do here. They search thousands of deals across dozens of lenders, and because they're paid by the lender rather than you, it costs you nothing. There is genuinely no downside to getting that advice.
What About Overpaying or Switching to a Shorter Term?
When you're remortgaging, it's also a brilliant time to have a think about your overall mortgage strategy. If you've had a pay rise since you last fixed, or your circumstances have changed, you might be able to afford slightly higher monthly payments — and overpaying can slash years off your mortgage and save you thousands in interest over the long run. Most fixed deals let you overpay by up to 10% of your balance each year without any penalty, so it's worth asking about this.
Equally, if money is tighter than it was when you first took out your mortgage, remortgaging to a longer term can bring those monthly payments down to something more manageable. It's not the perfect solution for everyone, but it's far better than struggling or missing payments.
Terry's Top Tips
- Start looking six months early. Don't wait until your deal expires. Set a reminder in your phone right now and begin exploring your options with plenty of time to spare.
- Never automatically accept your lender's SVR. This is almost always the worst rate available to you. Even a quick look around will usually find something better.
- Use a whole-of-market, fee-free broker. They do the hard work for you, compare hundreds of deals, and it costs you nothing. It's a complete no-brainer.
- Check your credit report before you apply. A good credit score helps you access the best rates. You can check yours for free and fix any errors before they cost you money.
- Don't panic about rates. Yes, rates are higher than they were a few years ago, but there are still competitive deals out there. Acting early and shopping around is how you find them.
The mortgage market can feel overwhelming, especially when the numbers involved are this big. But I promise you — a couple of hours spent sorting this out now could genuinely save your family thousands of pounds over the next few years. At TrueSaver, we make it simple to compare mortgage options and connect with trusted advisers who'll work in your corner. Head over to our mortgage comparison tool today and let's find you a deal that puts money back where it belongs — in your pocket, not your lender's.
