The end of a fixed mortgage deal is a moment that quietly costs people thousands. Do nothing, and you do not simply carry on as before — you slide onto your lender's standard variable rate, which is usually far higher. A little planning avoids that trap entirely.
What happens when a fix ends
Your fixed period has an end date written into the paperwork. On that date, unless you have arranged something new, the lender moves you to its standard variable rate (SVR). The SVR is typically much higher than the deals on offer, so your monthly payment can jump sharply for no good reason.
Start early
You can usually line up a new deal three to six months before your current one ends, and lock the rate in ready to start the moment the fix expires. This means you never touch the SVR. Set a reminder for six months before the end date — the single most useful thing you can do.
Your two routes
- A product transfer — switch to a new deal with your existing lender. Quick and low-fuss, but you only see their offers.
- Remortgaging elsewhere — move to a new lender. More paperwork, but you get the whole market and may save more.
Worth the effort
Compare the rate, any fees, and the total cost over the deal period rather than chasing the lowest headline rate alone. Even an hour spent comparing, or a quick word with a mortgage broker, often pays for itself many times over. The cost of inertia here is real money.