Introduction.
The end of a fixed rate is one of the few moments when you can reshape your mortgage without moving home.
Most people simply take whatever their lender offers. Sometimes that is the right answer; often it is not. Your property may be worth more, your loan smaller and your circumstances different from when you last borrowed, and each of those can change the deals available to you.
This guide explains how to time your review, how to compare staying with your lender against moving, and what else is worth reconsidering while you are at it: the term, overpayments, raising capital and the cover that protects it all.
We will contact you well before your deal ends, so the decision is made calmly and on time.
How far ahead many lenders let you secure your next rate before your current deal ends.
01Why review now.
When a fixed or tracker deal ends, your lender moves you onto its standard variable rate unless a new deal is in place. For many borrowers that is a sharp rise in payments.
The cost of doing nothing
| Scenario | Rate | Monthly payment |
|---|---|---|
| Current fixed rate | 1.99% | £1,143 |
| Standard variable rate | 7.49% | £1,994 |
| New fixed rate | 4.39% | £1,484 |
Repayment mortgage of £270,000 with 25 years remaining. Illustrative rates only.
Why the market may look different for you
- Your equity has changed. Repayments and price growth may have moved you into a lower loan-to-value band.
- Your income has changed. A pay rise, a new job or self-employment all affect what lenders offer.
- Your plans have changed. You may want to move, extend, overpay or raise money.
- The market has changed. Lenders reprice constantly; your current lender’s offer is only one option.
Adviser’s note
Even one month on the standard variable rate can cost more than our fee. Starting early is the simplest saving there is.
02When to start.
Many lenders let you secure a new rate up to around six months before your current deal ends. If rates fall in the meantime, we can often switch you to a better one before completion.
Six months before
We review your current deal, the early repayment charges and what has changed for you.
Time to planFour to six months before
We compare your lender’s product transfer offer with the wider market and secure the best option.
Your rate is protectedThree months before
For a remortgage, the new lender values your property and underwrites the case; solicitors handle the legal work.
Often free legal workThe final weeks
If rates have fallen, we look at switching to a lower rate before the new deal starts.
We keep checkingYour deal ends
Your new mortgage starts the day after, with no time spent on the standard variable rate.
SeamlessSix months before the next one
We will be back in touch to do it all again.
A long-term relationshipLeaving early
If your plans have changed, it can sometimes make sense to leave a deal early despite an early repayment charge. We will show you the numbers so you can decide.
03Product transfer or remortgage?
| Product transfer | Remortgage | |
|---|---|---|
| What it is | A new deal with your current lender | Moving your mortgage to a new lender |
| Speed | Often very quick | Usually four to eight weeks |
| Checks | Often no new affordability or valuation | Full application, valuation and credit check |
| Legal work | None needed | Often free legal packages available |
| Choice | One lender’s range | The whole market |
| Borrowing more | Possible, with a fresh assessment | Often the better route |
Adviser’s note
We compare both, including fees and incentives, and recommend whichever gives you the best overall outcome.
Your equity, your rate
Lenders price in loan-to-value bands. Moving down a band often unlocks lower rates.
| When you bought | Today | |
|---|---|---|
| Property value | £350,000 | £400,000 |
| Mortgage balance | £315,000 | £270,000 |
| Loan to value | 90% | 67.5% |
Illustrative. The lender’s valuation decides the final figure.
In this example, the borrower has moved from the 90% band to below 75%, opening up a far wider choice of rates.
04Choosing your next rate.
The lowest rate is not always the cheapest deal. We compare the total cost over the deal period, including fees, for your balance.
Fixed or tracker
| Fixed | Tracker | |
|---|---|---|
| Payments | Fixed for 2, 3 or 5 years | Move with Bank of England base rate |
| Suits | Certainty for budgeting | Flexibility, or expecting rates to fall |
| Leaving early | Early repayment charges usually apply | Often fewer or no charges |
Ask yourself how you would cope if payments rose, and how long you expect to keep the mortgage.
Fee or fee-free
| Loan | Cheaper over a 2-year fix | Saving |
|---|---|---|
| £150,000 | Fee-free at 4.59% | £388 |
| £270,000 | 4.29% with £999 fee | £101 |
| £500,000 | 4.29% with £999 fee | £1,038 |
Total of 24 monthly payments plus fee paid upfront, 25-year repayment term. Illustrative rates.
Adding fees to the loan
Adding a product fee to your mortgage means paying interest on it for the full term. Paying upfront is usually cheaper if you can.
05Raising capital.
A remortgage can release equity for the things that matter to you, subject to affordability and the lender’s criteria.
Common reasons
- Home improvements and extensions
- A deposit for a buy-to-let or second home
- Helping a family member onto the ladder
- Buying out a former partner
- Business investment, with some lenders
- Consolidating other debts
What lenders look at
Lenders will assess affordability on the new, larger loan, the new loan-to-value, and what the money is for. Some purposes are accepted by every lender; others by only a few.
Consolidating debt
Think carefully before securing other debts against your home. Combining them into your mortgage may lower your monthly payments, but you may pay more interest overall because the debt is repaid over a longer period. Your home may be repossessed if you do not keep up repayments.
Further advance or remortgage
Your current lender may offer extra borrowing as a further advance, sometimes on a separate rate. A full remortgage can give access to better rates across the whole loan. We compare both.
Always tell the lender what the money is for. It affects which lenders will help and how they assess the application.
06Other things to review.
A review is the moment to reshape the mortgage, not just the rate.
Shorten the term
| £270,000 at 4.39% | 25 years | 20 years |
|---|---|---|
| Monthly payment | £1,484 | £1,692 |
| Total interest | £175,182 | £136,119 |
Illustrative, assuming the rate stays the same throughout.
Overpayments
Many deals allow you to overpay up to 10% of the balance each year without a charge. Regular overpayments reduce interest and shorten the term.
Who is on the mortgage
Adding or removing a borrower after marriage, separation or a change in circumstances usually needs a fresh application.
Moving home
If you may move in the next few years, check whether a deal is portable, and how early repayment charges would apply.
Extending the term
A longer term lowers monthly payments but increases the total interest you pay.
07Protecting you and your home.
Your balance, family and income may have changed since you last took cover. A remortgage is the right moment to check it still fits.
| Cover | Pays out |
|---|---|
| Life insurance | A lump sum to clear or reduce the mortgage |
| Critical illness | A lump sum on diagnosis of a specified illness |
| Income protection | A monthly income if you cannot work |
| Buildings and contents | Repair or rebuild; check the sums insured are up to date |
Protection policies have no cash-in value at any time and will cease at the end of the term. If you stop paying premiums, your cover will end.
Adviser’s note
Decreasing life cover should track your new term and balance. If you raise capital, level cover may need resizing.
08A remortgage, illustrated.
A family whose five-year fix is ending
Bought five years ago with a 10% deposit. The property has risen in value and the couple want to extend the kitchen.
- Current deal
- Ends in five months; lender’s offer received
- Equity
- Loan-to-value down from 90% to below 70%
- Plan
- Raise £40,000 for the extension
- Approach
- Compared a further advance with a full remortgage
- Outcome
- New lender, five-year fix, free legal work, completed the day the old deal ended
This example is illustrative and does not describe a real client.
09Checklist and glossary.
Documents to have ready
- Your latest mortgage statement
- Your current deal’s end date and any early repayment charges
- Photo ID and proof of address
- Last three months’ payslips, or accounts and SA302s
- Last three months’ bank statements
- Details of any loans, credit cards and finance
- A quote or plan for any works you are funding
- Your existing protection policy documents
Glossary
- SVR
- Standard variable rate: the lender’s rate after a deal ends.
- Product transfer
- A new deal with your existing lender.
- Remortgage
- Moving your mortgage to a new lender.
- ERC
- Early repayment charge for leaving a deal early.
- LTV
- Loan to value: the loan as a percentage of the property’s value.
- Further advance
- Extra borrowing from your existing lender.
- Porting
- Taking your existing deal with you when you move.
- Overpayment
- Paying more than your monthly payment to reduce the balance.
Related: Refinance / Additional Borrowing · All guides · Calculators