If your fixed-rate mortgage is ending in the next six to twelve months, this is probably the most important financial article you'll read this year. No drama, just facts. When a fixed deal ends, your lender quietly moves you onto something called a Standard Variable Rate — or SVR. These rates are almost always much higher than what you've been paying, and right now, the jump can add hundreds of pounds to your monthly bill. We're talking potentially £200 to £250 extra every single month. That's real money, and the good news is you don't have to just accept it.
Why the SVR Is Something to Avoid Like a Wet Shell
Your lender's Standard Variable Rate is essentially their default rate — the one they put you on when your deal runs out if you do nothing. Right now, many SVRs sit between 7% and 9%. If you're currently on a fixed rate of 2% or 3% from a few years back, moving onto an SVR could nearly triple your interest costs overnight. On a £200,000 mortgage, that could mean paying £2,400 to £3,000 more per year. The lender isn't doing anything wrong — this is how the system works. But knowing about it means you can plan ahead and dodge the hit entirely.
When Should You Start Looking for a New Deal?
Here's the bit most people don't know: you can lock in a new mortgage rate up to six months before your current deal ends, with many lenders allowing you to secure a rate even earlier. That means you don't have to wait until the final weeks in a panic. Start your search at least four to six months before your end date. If rates happen to drop between now and when you complete, many brokers can switch you to the better deal. You've got nothing to lose by starting early, and potentially thousands of pounds to gain.
Should You Stick With Your Current Lender or Switch?
This is where people often go wrong. It feels easier to just take whatever your existing lender offers — and sometimes their retention deal is genuinely competitive. But research consistently shows that shopping around saves money. Your current lender has no real incentive to give you their best rate unless they think you might leave. So always compare what they're offering against the wider market. A whole-of-market mortgage broker can do this work for you, often for free (they're paid by the lender). They have access to deals you simply can't get directly, and they handle all the paperwork too. It's one of those rare situations where getting expert help costs you nothing but could save you a great deal.
What About Overpaying Before Your Deal Ends?
If you have some savings sitting in a low-interest account, it's worth checking whether you could make overpayments on your mortgage before your fixed deal ends. Reducing your outstanding balance — even by a few thousand pounds — means you'll be borrowing less when you remortgage. A smaller loan means lower monthly payments and less interest overall. Most fixed deals allow you to overpay up to 10% of the outstanding balance per year without any early repayment charges, but always check your specific terms first. Never overpay more than your deal allows — the charges can be steep.
Terry's Top Tips
- Diary your end date now. Find your mortgage paperwork, note when your fixed rate ends, and set a reminder for six months before that date to start comparing deals.
- Never just roll onto the SVR. Even a modest remortgage to a new fixed deal will almost certainly save you money compared to your lender's default rate.
- Use a whole-of-market broker. They compare hundreds of deals, handle the admin, and their advice is usually free to you.
- Check your credit score before you apply. A better credit score means access to better rates — give yourself time to tidy up any issues beforehand.
- Consider fixing for longer if you want certainty. A five-year fix costs a little more than a two-year fix right now, but it protects you from future rate rises and gives you peace of mind.
The mortgage market can feel overwhelming, but you really don't have to figure this out alone. At TrueSaver, we're here to make things simple and help you find the right deal without the stress. Use our free mortgage comparison tool today, or speak to one of our friendly advisers who will walk you through your options in plain English — just like Terry would. A few minutes now could save you thousands over the next few years. Go on, give your wallet a reason to smile.
