What Happens When Your Fixed-Rate Mortgage Ends? Should You Remortgage?
Article Summary
When your fixed-rate mortgage ends, your repayments may increase. Learn how to remortgage, avoid costly SVR rates, and find the best deal – with guidance from Greenacre’s mortgage experts.
When you remortgage after a fixed term, you not only have the opportunity to secure a more competitive deal, but protect yourself from rising interest rates, and even release equity for other financial goals.
This guide walks you through exactly what happens when your fixed-rate period ends, how the remortgaging process works, and the key steps to take to avoid higher repayments and unnecessary costs.
How Fixed Rate Mortgages Work
Fixed-rate mortgages are designed to give you certainty for a set period, typically two, three or five years. Lenders offer these deals as temporary incentives, allowing you to lock in a rate that won’t change during the agreed rate period.
Once that term is over, the lender has no obligation to continue offering the same interest rate, which is why your fixed rate mortgage ends. At that point, your deal automatically reverts to the lender’s Standard Variable Rate (SVR), which is usually higher.
Many homeowners delay action after their fixed term ends, assuming remortgaging is complicated or time-consuming. But procrastinating can be costly. Mortgage lenders often allow you to secure a new deal up to six months in advance – giving you a head start. Viewing remortgaging after a fixed term as a regular financial health check – not just a chore – can help you stay in control of your long-term goals.
Why Remortgage After Your Fixed Term Instead of Staying on the SVR?
What many homeowners don’t realise is that staying on an SVR for even 6 months could cost significantly more than switching. For example, a £250,000 mortgage with a 2.5% SVR compared to a new 1.9% fixed deal could mean over £75 in extra monthly payments – adding up to £900 a year. Remortgaging after fixed term can be one of the simplest ways to stop overpaying for your home loan, offering:
- Lower monthly repayments: A new deal could reduce your costs compared with the SVR.
- Stability: A fresh fixed rate mortgage can protect you from base rate increases.
- Flexibility: A tracker mortgage or variable rate mortgage may suit those who want to benefit from falling rates.
- Options to borrow more: Remortgaging can provide a lump sum for home improvements or debt consolidation.
When is the Best Time to Remortgage?
The best time to remortgage your home is usually six months before your current mortgage deal ends. You don’t need to wait until your fixed-term mortgage ends. It’s best to start the process in advance, so you can compare different lenders and avoid any gaps, and ensure you secure today’s rate and give yourself enough time to prepare.
With inflation remaining above the Bank of England’s target and interest rates fluctuating, homeowners reaching the end of their fixed-rate deals face a very different market from when they first secured their mortgage.
Remortgaging after a fixed term now requires not just rate comparison but strategic timing. Locking in a new deal – even a few months early – could protect you from another base rate hike.
Signs It’s the Best Time to Remortgage
There isn’t a single “ideal time” that applies to everyone – it depends on your financial circumstances and goals. You might consider remortgaging when:
- Your fixed or tracker deal is ending – Avoiding a jump to your lender’s SVR can save you money immediately.
- Interest rates are expected to rise – With forecasts suggesting further fluctuations in the UK mortgage market, locking in sooner could reduce your overall interest costs.
- Your property value has increased – A higher property valuation lowers your loan to value (LTV) ratio, which can unlock better rates.
- You want to release equity – Homeowners sometimes remortgage to fund home improvements, consolidate debt, or free up cash.
- Your financial situation has changed – Improved credit score or reduced mortgage debt could mean you now qualify for a more favourable deal.
The Steps to Remortgage After Fixed Term
- Review your current mortgage balance and deal – Check the details: rate, mortgage term, and whether any early repayment charges or an exit fee apply.
- Use mortgage calculators – Estimate new monthly repayments and see how changes in mortgage interest rates might affect you.
- Get advice from a mortgage broker – A broker compares options across the market, including same lender offers and different lenders.
- Choose the best mortgage option
- Fixed rate mortgage: Provides certainty in monthly payments.
- Tracker mortgage: Follows the Bank of England base rate change.
- Variable rate mortgage: May suit those who want flexibility.
- Secure your new deal – Apply for a new mortgage and lock in the best rate before your current term ends.
More details can be found in our blog: How does remortgaging work?
Re-Mortgage Considerations
There are several things to consider when remortgaging. House prices rise and fall, so it’s always sensible to get valuations from more than one estate agent. If your property has increased in value, your loan-to-value (LTV) ratio will be lower. A lower LTV often means you can access better interest rates. You should also be aware of potential fees charged by lenders. These might include:
- Application, Product or Arrangement Fee – the cost of setting up your new mortgage.
- Valuation Fee – to confirm the property’s market value.
- Solicitor’s Fee – for the legal transfer of your mortgage.
- Early Repayment Charges – if you leave your fixed term before it ends.
- Exit Fee – applied by your current lender when closing your old mortgage.
At Greenacre, we guide you through these considerations well in advance. We compare your current deal with the rest of the market to secure the most suitable product. By planning ahead, you avoid unnecessary costs and ensure your mortgage continues to support your financial goals. Contact us today.
Client Testimonial: My husband and I cannot recommend Greg and his team at Greenacre Financial highly enough. We have finally completed on our re-mortgage which was incredibly complicated, in fact we had it fall through a couple of times and it has taken a while to get to the finish line, but Greg has persevered, and we are so grateful. We do hope that when it comes time to re-mortgage in a couple of years time that it will be a nice simple process, however I have full faith in the team at Greenacre if it is not. Thank you, guys.
Remortgaging FAQs
Can I remortgage with the same lender?
Yes, this is known as a product transfer. But always compare with different lenders.
What happens if I do nothing?
You’ll automatically move onto your lender’s SVR mortgage, which can be costly.
Do I need a broker to remortgage?
While not essential, a mortgage broker like Greenacre can help you find the best deal and avoid hidden fees.
How long does the remortgaging process take?
Usually 4–8 weeks but starting early gives you more breathing space.
Find out why people remortgage in our blog: The most common reasons for remortgaging.
Why Use Greenacre for Your Remortgage?
At Greenacre Financial Services, you’ll benefit from whole-of-market access. As independent advisors, we can compare deals from over 100 lenders, ensuring you don’t miss out on the most competitive rates available.
We make the remortgaging process simple by guiding you through every step from start to finish. From checking your existing deal to securing a new mortgage, we handle the details so you can focus on your future plans.
Every homeowner’s needs are different. Whether you want the security of fixed payments, the flexibility of a variable rate, or the chance to release funds for other goals, we’ll tailor your mortgage options to fit your circumstances.
You’ll also have the reassurance of trusted support. We’ll explain the risks and potential costs, including early repayment charges, so you can make informed decisions without unexpected surprises.
For more information about any of our services, or if you have any questions relating to your remortgage after a fixed term, feel free to get in touch or call us on 0203 3939 222.
Written By: Sasha Stanworth
Author Bio: Sasha co-founded Greenacre Financial Services in 2018 after over a decade in public sector PR and communications. A fully qualified mortgage advisor, she’s passionate about helping first-time buyers achieve homeownership. Sasha also oversees Greenacre’s daily operations and team, ensuring clients receive consistent, high-quality service.
