If your mortgage fixed rate is due to end within the next six to nine months, now may be the ideal time to start exploring your options.
Many homeowners leave remortgaging until the last minute, only to find themselves automatically moved onto their lender’s Standard Variable Rate (SVR), which is often significantly higher than their existing deal.
Planning ahead could save you money and provide certainty over your future monthly payments.
What Happens When a Fixed Rate Ends?
When your fixed rate mortgage comes to an end, you will typically move onto your lender’s SVR unless you arrange a new deal.
The SVR is set by the lender and can change at any time.
In many cases, it is considerably higher than available fixed-rate products, resulting in higher monthly repayments.
This is why reviewing your mortgage well before your deal expires is so important.
How Early Can You Remortgage?
Many lenders allow you to secure a new mortgage deal up to six months before your current fixed rate expires.
This means you can:
- Lock in a suitable rate
- Avoid last-minute decisions
- Protect yourself from future rate increases
- Have time to gather required documents
The new mortgage will usually begin once your existing deal ends.
Check for Early Repayment Charges
Before proceeding, it is important to understand whether your current mortgage includes Early Repayment Charges (ERCs).
These charges may apply if you leave your existing deal before the agreed end date.
Your mortgage adviser can help determine:
- Whether ERCs apply
- The cost involved
- Whether switching early makes financial sense
In some circumstances, the savings from a new mortgage may outweigh any charges.
Review Your Current Circumstances
Your financial situation may have changed since you first obtained your mortgage.
When reviewing options, lenders may consider:
- Your income
- Employment status
- Credit history
- Existing debts
- Property value
If you are now self-employed, have changed jobs or experienced changes in income, it is worth discussing your circumstances with a mortgage adviser early in the process.
Could You Borrow More?
Remortgaging is not just about securing a better interest rate.
Some homeowners choose to:
- Fund home improvements
- Consolidate existing borrowing
- Release equity
- Support children with property purchases
Any additional borrowing should be carefully considered and assessed against your long-term financial goals.
Why Use a Mortgage Broker?
The mortgage market can be complex, with hundreds of products available from different lenders.
A mortgage broker can:
- Compare products across the market
- Identify suitable lenders
- Help with applications
- Explain fees and costs
- Support you through the process
This can be particularly valuable for self-employed applicants or those with more complex circumstances.
Don’t Leave It Too Late
Many homeowners focus on their mortgage only when they receive a letter from their lender informing them that their fixed rate is ending.
By then, valuable time may have been lost.
Starting six months before your deal expires gives you the greatest opportunity to review the market and make an informed decision.
Ready to Review Your Mortgage?
Whether your fixed rate ends in six months or next year, acting early can help you avoid unnecessary costs and secure a mortgage that continues to support your financial goals.
If your mortgage deal is coming to an end, please get in touch to arrange a free initial conversation to discuss your remortgage options and find out what deals may be available to you.
*Please note: Your home may be repossessed if you do not keep up repayments on your mortgage. Mortgage eligibility and lending criteria apply.