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What happens when my fixed-rate mortgage ends?
As you approach the end of a fixed-rate mortgage deal, you’ll need to decide whether to move to a new deal or transition onto your lender’s standard variable rate (SVR). In this article, we help you to understand the pros and cons of each option. For personalised guidance, speak with a mortgage broker who’ll help you to compare mortgage rates and find the right deal for you.
What happens at the end of your fixed-rate mortgage?
When you take out a fixed-rate mortgage, your interest rate will stay the same for a set period. This is often referred to as the fixed-rate period, introductory period or deal length. Once this period comes to an end, your lender automatically moves your mortgage to their standard variable rate. It's important to be aware that the SVR almost always carries a higher interest rate than the introductory rate offered during your fixed term.
Don’t worry too much, though - you don’t have to stick with your lender’s SVR. You have the option to choose a new mortgage deal, either by staying with your current lender or by switching to a completely new mortgage provider.
Fixed-rate mortgages versus standard variable rate
| Fixed-rate | Standard variable rate | |
|---|---|---|
| Cost | The interest rate is usually lower, as lenders price their fixed-rate mortgage products at a cheaper rate than their SVR | Lenders set their own SVR, which is usually higher than their other mortgage products |
| Deal length | You must choose a specific deal period, usually two or five years. You will then need to choose a new mortgage or move to your lender’s SVR at the end of your deal | There’s no specific ‘end date’ so you could technically stay on your lender’s SVR for the entire mortgage term - though this would be a very expensive choice |
| Predictability | Your repayments stay the same for the length of your deal | The interest rate can go up or down at any time, which could impact your monthly payments |
| Protection if rates rise | You’re protected from interest rate increases throughout your fixed term | Payments can increase if rates rise |
| Benefit from rate drops | You won’t benefit during the fixed term unless you remortgage (though this will likely incur fees) | If interest rates drop and your lender decreases their SVR as a result, your mortgage payments will also decrease |
| Flexibility | You’ll incur early repayment charges if you choose to leave your deal early, and may also be subject to less flexible terms when it comes to overpayments or exit fees | More flexible; usually allows overpayments and early repayment without penalty |
Your options when a fixed-rate mortgage ends
1. Move to your lender’s standard variable rate
You may decide to allow your mortgage to move to your lender’s SVR automatically. It’s likely your monthly payments will increase if you do, though, as the SVR is usually much more expensive than fixed-rate deals or other variable-rate products.
Moving to your lender’s SVR might be a suitable short-term solution if you expect your circumstances to change in the near future though. For example, if you’re planning a house move, wanting to make a substantial mortgage overpayment or intending to repay your mortgage off in full soon. In these scenarios, the costs associated with arranging a new mortgage deal might outweigh any potential savings in interest.
You may also find yourself on your lender’s SVR if your remortgage application is declined - which could happen if your financial situation has changed significantly since first getting your mortgage. It’s worthwhile seeking advice from a mortgage advisor to explore all options available to you.
Advantages of moving to a lender’s SVR
More flexibility. SVR mortgages have flexible terms, allowing you to make overpayments or switch to another deal without penalty.
No remortgage hassle. You can theoretically stay on a SVR for the lifetime of your mortgage, avoiding costs associated with remortgaging (such as product fees).
Interest rates could drop. Your monthly payments will decrease if interest rates do - though you’ll also benefit from this if you opt for a tracker or discount mortgage.
No credit check. As you’ll be staying with your current lender, you probably won’t need to go through eligibility or affordability checks.
Disadvantages of moving to a lender’s SVR
More expensive. A lender’s SVR is usually much more expensive than their other mortgage products, so you could miss out on a better deal.
Less predictable. Each lender decides how to price their SVR. Though the Bank of England rate may influence the SVR, your lender could independently decide to increase or decrease their SVR.
Harder to budget. You may find it harder to manage your budget if your payments fluctuate regularly, particularly if you’re used to knowing how much your mortgage payments will be each month.
If you’re expecting rates to fall and would prefer not to be locked into a fixed-rate deal, SVR isn’t your only option. It may be worthwhile exploring other potentially cheaper variable-rate options such as tracker or discount mortgages. ”Laura Hamilton, Mortgage Expert
2. Get a new deal with your current lender
Transferring to a new deal with your current lender is known as a product transfer. This process can be more straightforward than switching to a new lender, as you typically won't need to undergo a full remortgage application.
Advantages of a product transfer
Lower initial costs. If you opt for a product transfer, you might not incur some of the usual costs associated with remortgaging.
Quicker process. Getting a new deal with your existing lender could be quicker and simpler than switching lenders. There’s less admin involved, you’re less likely to need a conveyancer and a property valuation is usually not necessary.
Cheaper than your lender’s SVR. Your current lender is likely to offer you a cheaper mortgage deal compared to their standard variable rate. Many also offer exclusive rates to existing customers, so it’s well worth exploring your options.
Greater chance of acceptance. You may be able to get a new deal with your existing lender even if your financial situation has changed, as long as you’ve kept up with your mortgage payments.
Disadvantages of a product transfer
May not get access to the best rates on the market. You may find a better deal elsewhere, so it’s worth shopping around to compare deals from across lenders. A mortgage broker can do this on your behalf, saving you time and hassle.
Less flexibility. Unless you’re on your lender’s SVR, you’ll normally need to pay an early repayment charge if you choose to remortgage before your current deal ends.
3. Switch to a new mortgage provider
Switching to a new lender is known as remortgaging. This involves taking out a new mortgage with a different lender to pay off your existing one.
The application process is similar to applying for your initial mortgage, involving ID verification, affordability assessments, a credit check and potentially a property valuation.
Advantages of remortgaging
Get a cheaper mortgage rate. Remortgaging will usually always be cheaper than transferring to your lender’s standard variable rate.
Borrow more if you need to. You may be able to borrow more money when you remortgage. This will increase the overall size of your mortgage, but could release the funds you need to pay for things like home improvements
Reduce your mortgage balance. At the time of remortgaging, some lenders will allow you to pay off a lump sum to reduce the total amount of interest you’ll pay during the lifetime of your loan.
Another lender might offer more flexible terms. Different lenders offer different mortgage terms. So, for example, switching lenders could give you more generous overpayment options or give you access to specialist mortgage products that your current lender might not offer.
Get a lower loan-to-value deal. If your loan-to-value (LTV) has increased (which is likely to happen if your property value has increased or you’ve built up equity) you may be able to access more competitive rates by opting for a lower LTV deal.
Disadvantages of remortgaging
High ERCs. Want to leave your mortgage deal early? You’ll need to pay an early repayment charge, which can be expensive. You may be able to avoid early repayment charges by ensuring you remortgage once your current deal has ended, though.
You may find it more challenging to qualify. You may find it trickier to meet new lender requirements if your financial circumstances have changed, your credit score has declined or your property has fallen in value since you got your first mortgage.
Remortgaging can be expensive (but doesn’t always have to be). Remortgaging costs (such as exit fees, arrangement fees and conveyancing fees) can outweigh the benefits of a cheaper rate - particularly if you have a small mortgage balance or you’re planning to move house soon. That said, many lenders do offer to cover your legal fees when you remortgage.
Lengthier process. Switching to a new lender is a similar process to getting your first mortgage, likely involving a full mortgage application (including affordability assessment and credit check) and property valuation. This can be more complex and costly to arrange versus choosing a new deal from your current lender. However, working with a mortgage broker like Mojo Mortgages can help to mitigate some of these issues - they’ll help to manage the process from start to finish to make sure your remortgaging journey runs smoothly.
Will changing mortgage deals cost me more?
Allowing your mortgage to revert to your lender's SVR could lead to a significant increase in your monthly payments. That’s why most homeowners choose to arrange a new mortgage deal before their current one ends.
Let’s say you’re repaying a £300,000 mortgage over 25 years. As of 14 April 2025, the average 5-year fixed-rate 75% LTV mortgage costs 5.12% compared to the average standard variable rate of 7.90%. Using our mortgage calculator, that works out at a difference of £521 per month or £6,252 each year. So, as you can see, avoiding this higher rate by finding a new mortgage deal can often result in substantial savings.
What to do if you’re coming up to the end of your fixed-rate mortgage term
Look for new deals up to six months in advance. It’s a good idea to start looking for mortgage deals around three to six months before your fixed-term mortgage deal is due to end. This timeframe allows you to lock in a more favourable rate before you get automatically moved to your lender’s SVR. However, if rates go down in the meantime, you may still have the opportunity to switch to a better rate before your current deal expires. This gives you peace of mind that you’re transitioning to the most competitive deal available.
Check your existing terms to help you compare your current mortgage with any new deals. Find out exactly how long is left on your current deal, what your outstanding mortgage balance is and what interest rate you’re paying. You should also familiarise yourself with other terms, such as early repayment charges, exit fees or overpayment allowances. This will help you to more accurately compare other deals on the market with your existing one.
Work out your budget. Your monthly payments are likely to change when you switch mortgage deals, so it’s essential to plan accordingly. Find out exactly how much you currently pay each month and how much a new deal is likely to cost. If it’s going to cost more, you’ll be able to assess and rework your budget in advance to make sure you can comfortably afford the repayments.
Consider overpayments. If you fixed a mortgage deal before rates began to increase in 2023, it’s likely your rates (and therefore mortgage payments) will increase when your deal comes to an end. You may therefore wish to try and clear some of your mortgage balance before remortgaging, which can lead to lower payments in the long run. Most lenders allow you to overpay your mortgage by 10% of the remaining balance each year without incurring any fees. However, it’s worth checking your current lender’s specific policy.
Speak with a mortgage broker. An expert mortgage advisor will compare deals from across the market and recommend the most suitable options for you. While you may wish to compare deals and speak to your current lender yourself, it’s beneficial to have an expert on your side to help you navigate the often complex remortgaging process.
FAQs
Can I remortgage during a fixed-rate term?
Yes, you can, but you’ll probably have to pay early repayment charges. That’s why most homeowners choose to wait until their fixed-rate mortgage ends before remortgaging.
Will my payments increase when my fixed rate ends?
This depends on your mortgage rate versus the rates currently available on the market.
If your existing deal is at a lower rate (such as the 1-3% deals we saw before 2023) then you’ll likely see your interest rate and therefore your mortgage payments rise significantly.
On the other hand, if your current mortgage interest rate is higher than the ones lenders are offering at the moment, you could see your monthly payments drop.
Other factors also impact the rate of interest you’re offered, such as your financial circumstances and loan-to-value ratio, so you may be able to access more competitive rates than you could when you last locked in a mortgage deal.
How much does it cost to remortgage?
If you choose to remortgage, you’ll have to consider additional costs that aren’t applicable if you switch to your lender’s standard variable rate. This includes:
Arrangement fee, also known as a product fee
Exit fee
Valuation fee (some lenders don’t charge for this if you’re remortgaging)
Conveyancing fee (some lenders include free conveyancing as part of their remortgage packages)
Early repayment charges (only applicable if you switch deals before your current one comes to an end)
While you won’t automatically be charged these fees, and the costs will vary by lender, it’s worth considering all potential costs when comparing mortgage deals.
Do I have to move deals when my fixed-rate mortgage end?
Yes - you can’t stay on your current fixed-rate mortgage deal forever (unless you have a fixed interest rate for the lifetime of your loan, which is extremely rare).
The most common fixed-rate mortgages are two-year or five-year deals, though some lenders do offer the option to fix for longer. So it’s extremely likely you’ll need to move deals several times throughout your mortgage term.
YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
The FCA does not regulate mortgages on commercial or investment buy-to-let properties.
Uswitch makes introductions to Mojo Mortgages to provide mortgage solutions. Uswitch and Mojo Mortgages are part of the same group of companies. Uswitch Limited is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 312850. You can check this on the Financial Services Register by visiting the FCA website. Uswitch Limited is registered in England and Wales (Company No 03612689) The Cooperage, 5 Copper Row, London SE1 2LH. Mojo Mortgages is a trading style of Life's Great Limited which is registered in England and Wales (06246376). Mojo are authorised and regulated by the Financial Conduct Authority and are on the Financial Services Register (478215) Mojo’s registered office is The Cooperage, 5 Copper Row, London, SE1 2LH. To contact Mojo by phone, please call 0333 123 0012.
*Average savings are based on Mojo Mortgages residential remortgage sales data, compared to the average SVR in February 2025. Actual savings will depend on individual circumstances.