Right now, hundreds of thousands of UK families are in for a nasty surprise when their fixed-rate mortgage deal ends. If you locked in a rate of 1% or 2% a few years ago, you could be about to jump onto a rate of 4%, 5%, or even higher. On a typical £200,000 mortgage, that could mean paying £200 or £300 more every single month. That's real money — holidays, food shopping, energy bills money. The good news? There are things you can do right now to soften the blow, and Terry is here to walk you through them, step by step.
When Exactly Does Your Deal End — and Why It Matters More Than You Think
The first thing to do — and do it today — is dig out your mortgage paperwork or log into your lender's app and find your deal end date. This is crucial because most lenders will let you lock in a new rate up to six months before your current deal expires. That means if your fix ends in, say, October, you could be securing a new deal right now in April.
Why does this matter so much? Because mortgage rates change constantly. If rates nudge down over the next few months, most lenders will let you switch to the lower rate before you complete — but if rates go up, you're already protected. It's a brilliant no-lose situation, and most people simply don't know they can do it.
Should You Stay With Your Lender or Shop Around?
Your current lender will almost certainly write to you before your deal ends and offer you a new rate. It feels easy and comfortable to just accept it — but please don't do that without checking what else is out there first. Lenders reserve their very best deals for new customers, not loyal ones.
Shopping around using a whole-of-market mortgage broker — someone who can see deals from across the entire market, not just one bank — could save you a significant amount. On that same £200,000 mortgage, a difference of even 0.5% in your interest rate works out to roughly £1,000 a year. Find a 1% better deal? That's £2,000 back in your pocket annually. Over a five-year fix, we're talking £10,000. It is absolutely worth an hour of your time.
What About Overpaying Before Your Deal Ends?
If you've got some savings sitting in an account earning modest interest, it's worth checking whether you could overpay your mortgage before your deal ends. Most fixed-rate deals allow you to overpay by up to 10% of your outstanding balance each year without penalty. Reducing what you owe — even a little — means your loan-to-value ratio improves, which can unlock better rates when you come to remortgage. A smaller mortgage balance also means lower monthly payments going forward. Win-win.
Do check your mortgage terms carefully before overpaying, though — some lenders do charge fees if you go over the allowed amount. A quick phone call to your lender will confirm what you're allowed to do.
Don't Panic About Your Credit File — But Do Check It
When you apply for a new mortgage deal, lenders will look at your credit file. Now is a brilliant time to check yours is in good shape. Make sure you're on the electoral roll at your current address, look for any errors, and avoid taking out new credit in the months before you apply. None of this is scary or complicated — it just takes a bit of forward planning.
Terry's Top Tips
- Find your end date today — log in or check your paperwork right now. Don't leave it until the last minute.
- Start looking for a new deal up to six months early — you can reserve a rate now and switch to a better one if rates fall before you complete.
- Use a whole-of-market broker — they can access deals you won't find on the high street and their advice is often free to you.
- Consider overpaying — even a small lump sum before your deal ends can improve your loan-to-value and unlock better rates.
- Check your credit file — use a free service to review it and fix any mistakes well before you apply.
The mortgage market can feel overwhelming, but you don't have to face it alone. At TrueSaver, we help ordinary UK families compare deals, understand their options, and make confident decisions about their money. Head over to our mortgage comparison tool today and see how much you could save before your fixed deal ends. A few minutes now could mean thousands of pounds saved over your next deal — and that's worth every second.
