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What to Do When Your Fixed-Rate Mortgage Deal Ends

10th March 2025

Hundreds of thousands of UK homeowners will see their fixed-rate mortgage deals expire in 2025. For many, the rate they secured in 2020, 2021 or early 2022 will have been exceptionally low — the era of sub-2% five-year fixes is now firmly in the past. When a fixed rate ends, your lender automatically moves you onto their standard variable rate (SVR), and this is almost always significantly more expensive.

Understanding your options before your deal ends can save you thousands of pounds over the coming years.

What is the Standard Variable Rate?

The standard variable rate is a lender’s default interest rate. It is not linked directly to the Bank of England base rate and each lender sets their own SVR independently. SVRs typically sit between 7% and 8.5% and lenders can change them at will. If you do nothing when your fixed deal expires, you will automatically roll onto your lender’s SVR.

For a homeowner with a £200,000 mortgage, the difference between a fixed rate of 4.5% and an SVR of 7.5% is approximately £330 per month. Over a year that is nearly £4,000 in additional interest payments. Acting before your deal expires is strongly advisable.

Your Options When a Fixed Deal Ends

Remortgage to a new fixed rate. This is the most popular option. By shopping around for a new deal — either with your existing lender or a different one — you can secure a competitive rate and budget with certainty. Most lenders allow you to lock in a new deal up to six months before your current one expires, so you do not need to wait until the last minute.

Switch to a tracker mortgage. A tracker mortgage follows the Bank of England base rate plus a fixed margin. If you believe rates will continue to fall over the next year or two, a tracker may cost you less than a fixed rate over that period. The risk is that if rates rise, your payments will increase. Trackers are generally most suitable for borrowers who can comfortably absorb payment fluctuations.

Take a product transfer with your current lender. Many lenders offer existing customers a new fixed deal without requiring a full affordability assessment. This can be quicker and simpler than a full remortgage, but the rates offered may not be the most competitive on the market. It is worth comparing your lender’s retention deals against the wider market before committing.

Move to the SVR temporarily. If you are planning to move home in the near future or expect your financial situation to change significantly, staying on the SVR for a short period without a new deal can make sense. SVRs carry no early repayment charges, so you have flexibility. However, the cost of doing so is high and most borrowers are better served by taking a short-term fixed deal instead.

How Far in Advance Should You Act?

Most mortgage advisers recommend starting to review your options at least three to four months before your current deal expires. Six months is better. This gives you time to compare the market, complete any lender checks, and have a new deal in place so there is no gap when your current rate ends.

Some lenders will allow you to reserve a rate up to six months ahead with no obligation to take it if something better becomes available before completion. This approach — known as ‘locking in’ — can protect you against rate rises without locking you out of any future rate falls.

Should You Use a Mortgage Broker?

A qualified mortgage broker has access to deals from across the entire market including exclusive rates not available directly to the public. For most borrowers, a broker will be able to find a more competitive deal than going direct to a single lender. Brokers are also regulated by the Financial Conduct Authority and have a duty to recommend a product that is suitable for your circumstances.

The cost of not using a broker — settling for a less competitive rate or staying on an SVR when you did not need to — is typically far greater than any broker fee. Many brokers charge no upfront fee at all, receiving their payment from the lender on completion.

Speak to a Professional Mortgage Adviser

If your mortgage deal is ending in the coming months, now is a good time to get advice. A professional adviser can review your current deal, compare the market and recommend the most appropriate product for your circumstances. To speak to one of our advisers, please submit an online enquiry or call us on 0800 310 1340.

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.