What happens at the end of a fixed-rate mortgage UK?

When your fixed-rate deal ends, you are automatically moved to your lender's Standard Variable Rate (SVR). The SVR is typically 1–3 percentage points higher than competitive fixed rates, which can add hundreds of pounds to your monthly payment. You should aim to have a new deal in place before the fixed period expires.

When should I start looking for a new mortgage deal?

Start looking around 6 months before your fixed rate ends. Most lenders and brokers can lock in a new rate up to 6 months in advance, and some allow up to 9 months. If rates drop before completion, many lenders let you switch to the lower rate.

Can I switch to a new fixed rate with the same lender?

Yes. This is called a product transfer or retention deal. Your existing lender will usually offer you new deals without requiring a full application, affordability check, or valuation. It is often quicker and easier than remortgaging to a different lender, though it limits you to that lender's rates.

Do I have to pay early repayment charges when my fixed rate ends?

No. Early Repayment Charges (ERCs) only apply during the fixed-rate period. Once the fixed term expires and you move to the SVR, there are no ERCs for leaving. This is the best time to switch. If you switch before the end of the fixed period, you will usually have to pay ERCs of 1–5% of the outstanding balance.

Is it better to fix for 2 years or 5 years?

A 2-year fix gives you a lower initial rate and more flexibility to switch sooner, but you face remortgaging costs more often. A 5-year fix gives you longer certainty and protection against rate rises, but the rate is usually slightly higher. If you value stability and plan to stay in your home, a 5-year fix is often better value overall.

What Happens When Your Fixed-Rate Mortgage Ends?

Millions of UK homeowners have a fixed-rate mortgage that will end in the next few years. When that happens, your monthly payments can jump significantly if you do not act. This guide explains exactly what happens, when to act, and how to get the best deal when you remortgage.

For the wider cluster covering product transfers, remortgage timing, fees and switching routes, use the main Remortgaging hub.

What Happens When the Fixed Rate Expires

When your agreed fixed-rate period ends — typically after 2 or 5 years — your lender automatically moves you to their Standard Variable Rate (SVR).

The SVR Problem

Factor	Fixed rate (typical)	SVR (typical)
Interest rate	4.0–5.5%	7.0–8.5%
Monthly payment (£200k, 25yr)	£1,056 – £1,222	£1,396 – £1,570
Extra cost per month	—	£200 – £400+
Extra cost per year	—	£2,400 – £4,800+

The SVR is your lender’s default rate and it is almost always significantly higher than the best available deals. It can change at any time at the lender’s discretion.

You do not have to stay on the SVR. You have three main options.

Your Three Options

Option 1: Product Transfer (Stay with Your Lender)

A product transfer means moving to a new deal with your existing lender. This is the easiest option.

Advantages	Disadvantages
No full application needed	Limited to one lender’s rates
Usually no valuation required	May not get the best rate on the market
Faster process (days, not weeks)	Cannot borrow more without a new application
No solicitor needed	No option to change lender terms
No affordability assessment in most cases

Best for: Homeowners happy with their current lender who want a quick, hassle-free switch.

Option 2: Remortgage to a New Lender

Remortgaging means switching your mortgage to a different lender, usually to get a better rate or different terms.

Advantages	Disadvantages
Access to the whole market	Full application and affordability check
Potentially lower rates	Valuation may be required
Can borrow additional funds	Requires a solicitor (often free via lender)
Can change mortgage term	Takes 4–8 weeks
Can switch mortgage type

Best for: Homeowners who want the best possible rate, need to borrow more, or want to change their mortgage terms.

Option 3: Stay on the SVR

In rare cases, staying on the SVR can make sense.

When it might make sense	Why
You plan to move soon	Avoids product fees on a deal you will exit quickly
You want flexibility	No ERCs — you can leave at any time
You are paying off the mortgage shortly	The remaining balance is small
You expect rates to fall sharply	Can switch when rates drop (risky strategy)

For most people, staying on the SVR costs thousands of pounds a year unnecessarily.

When to Start Looking for a New Deal

The 6-Month Rule

Timeline	Action
6 months before	Start researching rates and speak to a broker
4–5 months before	Apply for your preferred deal or product transfer
2–3 months before	Complete the remortgage process
1 month before	Ensure new deal is ready to start when fixed rate ends
Deal end date	New rate kicks in — no gap on SVR

Most lenders let you lock in a rate 6 months before your current deal ends (some allow 9 months). If rates fall between locking in and completing, many lenders will let you switch to the lower rate at no cost.

Starting early gives you time to compare options without the pressure of a deadline.

What to Consider When Choosing a New Deal

Fixed Rate Length

Term	Typical rate	Pros	Cons
2-year fix	Lower rate	More flexibility, switch sooner	Remortgage costs every 2 years
3-year fix	Mid-range	Good balance	Less common
5-year fix	Slightly higher	Long-term certainty	Less flexibility
10-year fix	Higher	Maximum stability	Early exit may incur ERCs

Other Factors

Factor	What to check
Product fee	Some deals charge £500–£2,000. Factor this into the total cost
Overpayment allowance	Most fixed deals allow 10% overpayment per year
Portability	Can you take the deal with you if you move?
Cashback	Some deals offer £500–£1,000 cashback
Early Repayment Charges	Percentage charged if you exit during the fixed period
Free valuation and legal work	Many remortgage offers include these

Total Cost Comparison

Do not just compare headline rates. The total cost of a mortgage deal includes the interest, product fee, and any cashback.

Deal	Rate	Fee	Monthly (£200k, 25yr)	Total over 2 years
Deal A	4.2%	£0	£1,078	£25,872
Deal B	3.9%	£999	£1,048	£26,151
Deal C	4.0%	£500	£1,058	£25,892

In this example, Deal A with no fee is actually the cheapest over two years despite having the highest rate.

Using a Mortgage Broker

A whole-of-market mortgage broker searches thousands of deals for you, including some not available directly. They can be particularly valuable when your fixed rate is ending because:

They know which lenders are currently competitive
They handle the paperwork and application
They can compare your lender’s product transfer with the wider market
Some access exclusive broker-only deals

Brokers are either fee-free (paid by commission from the lender) or charge a fee (typically £300–£500). Both approaches are legitimate.

Related: Mortgage Broker Guide

How the Remortgage Process Works

Step	Timeline
1. Get quotes and compare	Week 1
2. Apply with chosen lender	Week 1–2
3. Lender valuation	Week 2–3
4. Mortgage offer issued	Week 3–4
5. Solicitor handles legal transfer	Week 4–6
6. Completion — new deal starts	Week 6–8

If you are doing a product transfer with the same lender, the process is much faster — often just a few days.

What If You Cannot Remortgage?

Some homeowners find it harder to remortgage, usually because their circumstances have changed since they took out their original mortgage.

Situation	Options
Income has dropped	Product transfer (no affordability check) or stay on SVR
Credit score has worsened	Specialist lenders, product transfer
Property value has fallen	Product transfer, or wait for value recovery
Near retirement	Lender may limit term — product transfer may be easier
Self-employed less than 2 years	Product transfer, or specialist lenders

A product transfer with your existing lender is typically the best route if you cannot pass a new lender’s affordability checks, as most lenders do not run a full affordability assessment for existing customers.

Remortgage Costs

Cost	Amount
Product fee	£0 – £2,000 (depends on deal)
Valuation	Often free with remortgage deals
Solicitor / conveyancing	Often free with remortgage deals
Broker fee	£0 – £500
Discharge fee (old lender)	£50 – £300

Many remortgage deals include free valuation and free legal work, so the only out-of-pocket cost may be the product fee and the discharge fee from your old lender.

Key Actions Checklist

Check when your fixed rate ends — it is on your mortgage offer document
Set a reminder for 6 months before that date
Check your current mortgage balance and remaining term
Find out your property’s current approximate value
Calculate your loan-to-value ratio (balance ÷ property value × 100)
Compare your lender’s product transfer rates with the wider market
Speak to a mortgage broker for whole-of-market comparison
Apply for your chosen deal and complete before the fixed rate ends

Related guides:

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Your home may be repossessed if you do not keep up repayments on your mortgage. PocketWise provides information and guidance — we do not offer financial advice. Seek independent mortgage advice before making decisions about borrowing.