Right now, hundreds of thousands of UK families are waking up to a nasty surprise on their bank statements. Their lovely, low fixed-rate mortgage deal has ended — and suddenly they're paying hundreds of pounds more every single month. If your fixed deal is ending in the next six to twelve months, please don't ignore it. This is one of those moments where taking action early can genuinely save you thousands of pounds. Terry the Turtle is here to walk you through it, step by step, in plain English.
Why This Matters So Much Right Now
Millions of homeowners took out fixed mortgage deals when interest rates were at historic lows — some as low as 1% or 2%. Those days are behind us for now. When your fixed deal ends and you do nothing, your lender will quietly move you onto their Standard Variable Rate, or SVR. That sounds innocent enough, but SVRs are typically much higher — often 7% or more. On a £200,000 mortgage, that could mean paying £300 extra every month compared to a competitive new deal. That's £3,600 a year straight out of your pocket, for no reason other than not shopping around. The good news? You can act now and protect yourself.
When Should You Start Looking?
This is the bit that surprises most people. You do not need to wait until your deal actually ends. Most lenders will let you lock in a new mortgage deal up to six months before your current one finishes. Some will even allow up to twelve months. That means if your deal ends in, say, October, you could be sorting your new rate right now, in spring. And here is the really lovely part — if you lock in a rate and rates then fall before your deal starts, many lenders will let you switch to the lower rate. You have very little to lose by starting early, and potentially thousands of pounds to gain.
What Are Your Options When Your Deal Ends?
You broadly have three choices, and it is worth understanding all of them before you decide anything.
Stay with your current lender: Your lender will usually offer you a new product transfer deal. This is quick and easy — no new affordability checks, no legal fees in most cases. It is not always the best rate, but it is a perfectly valid option and sometimes surprisingly competitive.
Remortgage to a new lender: This means applying for a mortgage with a different bank or building society. It takes a little more effort and there may be some fees involved, but the savings can be significant. A good broker will do the heavy lifting for you.
Do nothing: You will land on your lender's SVR. As we have seen, this is almost always the most expensive option. Please, please do not do this by accident.
Should You Use a Mortgage Broker?
Honestly, for most people, yes. A whole-of-market mortgage broker can search hundreds of deals from dozens of lenders in one go — including deals that are not available if you go directly to the bank yourself. A good broker will also look at your whole situation, including your income, any changes to your circumstances, and how long you want to fix for. Many brokers charge a fee, but the savings they find often far outweigh the cost. Some brokers are even fee-free, earning their money from the lender instead. Always ask upfront how they are paid.
Terry's Top Tips
- Diarise your end date: Find your mortgage paperwork right now and write down exactly when your fixed deal ends. Set a reminder six months before.
- Check your current lender first: Log in to your online banking or call your lender to see what product transfer rates they are offering you. Use this as your benchmark.
- Get a broker involved: Even if you end up sticking with your current lender, a broker can tell you whether that deal is genuinely competitive.
- Think carefully about how long to fix for: Two-year fixes give you flexibility sooner, five-year fixes give you longer-term certainty. Neither is right for everyone — it depends on your plans.
- Do not forget the fees: A lower interest rate with a high arrangement fee is not always the bargain it looks. Always compare the total cost over the deal period, not just the headline rate.
Sorting your mortgage early is one of the most powerful financial moves you can make this year. Even shaving half a percentage point off your rate could save you thousands over the course of your deal. At TrueSaver, we can help you compare your options quickly and clearly, without any confusing jargon. Pop over to our mortgage comparison tool today and see what deals might be waiting for you — your future self will be very glad you did.
