Right now, hundreds of thousands of UK families are about to get a very unpleasant surprise in the post. Their fixed-rate mortgage deal is ending, and unless they take action, they could automatically roll onto their lender's Standard Variable Rate (SVR) — which can be 2% to 4% higher than what they're paying now. On a £200,000 mortgage, that could mean paying £200 to £400 extra every single month. That's money that could go towards your family, your savings, or simply keeping the heating on. The good news? A little bit of preparation can save you a small fortune. Here's exactly what to do.
Why Rolling Onto Your Lender's SVR Is Almost Always a Bad Idea
When your fixed deal ends, most lenders will quietly move you onto their Standard Variable Rate without making much of a fuss about it. It happens automatically, which is exactly why so many people miss it. SVRs are set by the lender themselves — not the Bank of England — and they can change them whenever they like. Right now, many SVRs sit between 7% and 9%, which is genuinely eye-watering compared to the 1% and 2% deals people locked in a few years ago. The moment your fixed deal ends, that higher rate kicks in. So the golden rule is simple: never let your deal expire without having a new one lined up.
Start Looking Six Months Before Your Deal Ends — Seriously, Don't Wait
Here's something your lender probably won't shout about: most mortgage offers can be secured up to six months in advance. That means you can shop around, find a great rate, lock it in, and if rates drop further before your deal starts, many brokers can help you switch to the better deal. You've got nothing to lose by starting early and potentially thousands to gain. Set a reminder in your phone right now. If your deal ends in the next six months, today is the day to start looking. If it ends within the next year, put a reminder in your calendar for three months' time.
Should You Stick With Your Current Lender or Switch?
Your current lender will likely write to you with a retention offer — a new deal to keep your business. It might look reasonable, but here's the thing: it might not be the best available. You have every right to shop around, and you absolutely should. Switching to a new lender (called remortgaging) might mean a bit more paperwork, but the savings can be significant. On the other hand, sticking with your current lender (a product transfer) is quicker and often doesn't require a full affordability check. The honest answer is: compare both. Use a fee-free mortgage broker who can look at the whole market for you — they're paid by the lender, not by you, so there's no cost to get proper advice.
What About Overpaying While You Still Can?
If you're currently on a fixed deal with a year or so left to run, this is a brilliant time to think about overpaying. Most fixed deals let you overpay by up to 10% of your outstanding balance per year without any penalty. Every pound you overpay reduces your balance, which means when you come to remortgage, you might land in a lower loan-to-value band — and that can unlock significantly cheaper rates. Even overpaying £100 a month can make a meaningful difference to your long-term mortgage costs.
Terry's Top Tips
- Diarise your end date: Find your mortgage paperwork today and note exactly when your fixed deal ends. This single step could save you thousands.
- Start shopping six months early: Mortgage offers typically last up to six months, giving you time to compare without pressure.
- Use a fee-free whole-of-market broker: They can access deals you can't find directly and won't charge you a penny for the advice.
- Don't just accept your lender's retention offer: It might be okay, but it's rarely the best deal out there — always compare.
- Consider overpaying now: Reducing your balance before you remortgage could push you into a cheaper rate bracket when the time comes.
Your mortgage is almost certainly your biggest monthly outgoing, so even a small improvement in your rate can make a genuinely life-changing difference to your household budget. At TrueSaver, we make it straightforward to compare mortgage deals and connect with expert, fee-free brokers who work in your interest — not the bank's. Head over to TrueSaver today and let us help you check whether you could be paying less. A few minutes now could save you thousands over the next few years. Go on — future you will be very glad you did.
