If your fixed-rate mortgage is coming to an end in the next six to twelve months, please — don't ignore it. I know mortgages can feel scary and complicated, but this is genuinely one of the biggest financial decisions your household will face. Rolling onto your lender's standard variable rate (SVR) without shopping around could cost you hundreds of pounds extra every single month. We're talking real money that could stay in YOUR pocket with just a little bit of effort. So let me walk you through exactly what to do, step by step.
Why This Matters More Than Ever Right Now
Over the past few years, millions of UK families locked into brilliant fixed deals at rates as low as 1% or 2%. Those deals are now ending. When your fix finishes, your lender will automatically move you onto their Standard Variable Rate — and right now, many SVRs sit at 7%, 8%, or even higher. On a £200,000 mortgage, that jump could mean paying £300 more per month compared to a competitive new fixed deal. That's £3,600 a year straight out of your family budget. The good news? You have options, and acting early is the key.
Start Looking Six Months Before Your Deal Ends
Here's something most people don't know — you can often lock in a new mortgage rate up to six months before your current deal ends, with no penalty. That means you're not rushing at the last minute, and if rates drop before your start date, many lenders will let you switch to a better deal they're offering. So if your fix ends in, say, October, start looking in April. Set a reminder on your phone right now. The worst thing you can do is nothing, because 'nothing' means landing on that expensive SVR by default.
Use a whole-of-market mortgage comparison tool — like the one on TrueSaver — to see what rates are genuinely available to you based on your loan size, property value, and circumstances. Don't just ring your current lender first. They'll only show you their own deals, which may not be the best on the market.
Should You Fix Again, Go Variable, or Consider a Tracker?
This is the big question everyone's asking. Here's the honest answer — it depends on your circumstances, but here's how to think about it simply:
- A new fixed-rate deal gives you certainty. You know exactly what you're paying each month. If you're on a tight budget or just need peace of mind, this is usually the sensible choice.
- A tracker mortgage follows the Bank of England base rate. If rates fall (and many experts expect them to ease over the coming years), your payments could drop automatically. But they could also go up — so only go tracker if you have a financial cushion to absorb higher payments.
- A variable rate mortgage sits somewhere in between, set by the lender rather than the base rate. These can be harder to predict, so read the small print carefully.
There's no single right answer. A good mortgage broker can look at your full picture and help you decide — and many brokers offer free advice, making their money from the lender instead.
Don't Forget These Hidden Costs When Comparing Deals
The headline interest rate isn't the whole story. Always look at the overall cost for comparison — this includes arrangement fees, which can be anywhere from zero to £1,500 or more. Sometimes a slightly higher rate with no fee works out cheaper overall, especially if you're on a smaller mortgage. Always calculate the total you'll pay over the initial fixed period, not just the monthly amount. TrueSaver's comparison tools show you the full picture so you're not caught out.
Terry's Top Tips
- 🐢 Diarise your end date today. Put it in your phone, stick a note on the fridge — whatever works. Missing it is costly.
- 🐢 Check your loan-to-value (LTV). If your home has gone up in value since you bought it, you might be in a lower LTV bracket, which unlocks better rates. Get a rough valuation before you apply.
- 🐢 Don't just go back to your current lender. Loyalty rarely pays in mortgages. Always compare the whole market.
- 🐢 Consider overpaying now if you can. Even small overpayments before your deal ends reduce your balance, lower your LTV, and could save you thousands in interest.
- 🐢 Check your credit file. Lenders use this to decide your rate. Make sure there are no errors holding you back — you can check it for free.
Your mortgage is probably your biggest monthly outgoing, so it deserves your attention. The effort you put in now — even just an hour comparing deals — could genuinely save your family thousands of pounds over the next few years. Head over to TrueSaver's mortgage comparison service today to see what deals you could be eligible for, and take the first step towards keeping more money where it belongs — in your pocket. You've got this! 🐢
