Right now, across the length and breadth of the UK, families are opening letters from their mortgage lender and doing a double-take. If you locked in a fixed mortgage deal two or five years ago, you might have been paying an interest rate of 1.5% or even lower. When that deal ends, you could find yourself automatically switched onto your lender's Standard Variable Rate (SVR) — which can be 7% or higher. On a £200,000 mortgage, that difference can cost you an extra £3,600 a year or more. That's real money that could go towards your family, your savings, or simply keeping the heating on. The good news? With a little planning, you don't have to just accept it.
What Happens When Your Fixed Deal Ends?
When your fixed-rate period finishes, your lender doesn't just leave things as they are. They quietly move you onto their SVR — a rate they set themselves and can change whenever they like. It's almost always much higher than what you were paying before, and it's rarely competitive. Think of it like a mobile phone contract: the best deals are always for new customers. Existing customers who do nothing tend to pay over the odds. The key thing to understand is that you have options, and the earlier you start exploring them, the better placed you'll be.
When Should You Start Shopping Around?
Here's something many people don't realise — most mortgage lenders will let you lock in a new deal up to six months before your current one ends. That means if your fix is ending in April, you could be securing your next rate right now, in October. You don't have to wait until the last minute. In fact, waiting is one of the most expensive mistakes homeowners make. Rates can change week to week, and if you find a good deal early, you can often reserve it and then switch when your current deal finishes — without paying any early repayment charges. Start your search at least three to six months ahead. Your future self will thank you.
Should You Stay With Your Current Lender or Switch?
Your existing lender will probably write to you with a retention offer — a new deal to keep you on their books. Sometimes these are decent. But here's the honest truth: your lender is banking on you being too busy or too loyal to look elsewhere. In many cases, you can do better by remortgaging to a new lender. Even a 0.3% or 0.5% difference in interest rate on a £200,000 mortgage can save you hundreds of pounds a year. That said, switching lenders does involve some paperwork and sometimes fees, so you need to weigh up the full cost — not just the headline rate. Look at the total cost over the deal period, including any product fees, to make a fair comparison. A good mortgage comparison tool makes this easy to do in minutes.
Fixed, Tracker, or Variable — Which Is Right for You?
With mortgage rates having risen sharply over the last couple of years, many people are wondering whether to fix again or try a tracker rate that moves in line with the Bank of England base rate. If the base rate falls — which many economists expect over the next year or two — a tracker mortgage means your payments could drop automatically. But if you need certainty and hate the idea of your monthly payment changing, a fixed rate gives you peace of mind and helps with budgeting. There's no universally right answer. It depends on your personal situation, how much flexibility you need, and your appetite for risk. Speaking to a whole-of-market mortgage broker can help you work out what suits your circumstances best.
Terry's Top Tips
- Diarise your end date: Know exactly when your fixed deal ends and set a reminder six months before to start shopping around.
- Don't just accept your lender's retention offer: It might look easy, but always compare it against deals from other lenders first.
- Check the total cost, not just the rate: A low rate with a hefty arrangement fee can end up costing more than a slightly higher rate with no fee.
- Overpay if you can: If your mortgage allows overpayments (most do up to 10% per year), making even small extra payments now can reduce what you owe and improve the deals available to you.
- Get advice from a whole-of-market broker: They search thousands of deals, not just a handful, and are often free to use as they earn commission from lenders.
The mortgage market can feel overwhelming, especially when rates have been moving around so much. But the single biggest mistake you can make is doing nothing and drifting onto your lender's SVR. Even a couple of hours spent comparing your options now could put thousands of pounds back in your pocket over the next few years. At TrueSaver, we make it simple to compare mortgage deals, find whole-of-market brokers, and explore all your options in one place — no jargon, no pressure, just straight-talking help. Head over to TrueSaver's mortgage hub today and let's find you a better deal together. You've got this — and Terry's got your back! 🐢
