Start three to six months early. When a fixed rate ends you automatically roll onto your lender's standard variable rate, which is usually much higher, so aim to have a new deal lined up to begin the day your fix finishes. Then compare staying with your lender against remortgaging, and pick on total cost.
The one thing to avoid
Doing nothing. If you let the fix simply end, you drop onto the standard variable rate, which lenders set high and can change at will, so your payment usually jumps. The whole game is to have a replacement deal ready to start the moment your fix ends, so you never touch the standard variable rate even for a month. The full detail is on what happens when my fixed rate ends.
The simple steps
- Start three to six months before your deal ends. New deals can be reserved in advance.
- Check how much your payment might change with the payment-shock calculator.
- Compare staying (a product transfer) against remortgaging with the switch or stay tool.
- If rates fall before completion, you can often move to the cheaper deal.
Stay or switch?
Staying with your lender on a new rate (a product transfer) is quick and skips the full affordability check; remortgaging to a new lender opens the whole market and can be cheaper or release equity. Decide on the total cost, not the headline rate. A regulated broker can confirm the best route for you.
Founder, MortgageExplained
Adam spent over eight years as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, so you know where you stand before you speak to a regulated broker. Every page on the site is written by Adam.
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