My fixed term mortgage is coming to an end

Fact checked
Fact Checked.
Updated on
March 15, 2021

In a nutshell

That means it's time to remortgage. When your fixed term deal ends you'll normally move to a higher interest rate, so switch your mortgage to a new fixed term deal with a low interest rate.

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Does this sound familiar? You’ve done the hard work, you’ve found the perfect house, you’ve got the mortgage. You’ve been living the dream for nearly 2 years. But now you realise the fixed term on your mortgage is coming to an end, and not sure what to do. If so, read on.

Here’s what your fixed term coming to an end means and what to do next

The fixed term on your mortgage simply means the introductory period of time where you get a much better rate - normally to entice you into picking one lender over another. And it’s great for you, the consumer, as competition from lenders means lower rates.

But once this period is over, you will automatically move onto a higher interest rate - typically called a Standard Variable Rate (SVR), or sometimes called revert rate. As of 2020, the average rate in the UK is between 3% and 4% (Bank of England). So it’s likely your rate would double!

The good news - you don’t have to ever go onto your SVR and pay this higher rate 

You can move your current mortgage to another lender, and even the same lender, and get a new fixed term deal with a low rate! This is called a remortgage, and it will save you hundreds of pounds per month - the average saving is £344 according to Trussle.

The best part about all of this is it takes no time at all to do. You can do it in around 15 minutes, and all online, and is completely risk free (providing your credit rating hasn’t taken a massive dent during your fixed term), and completely free for you - no hidden fees. We run through everything you need to do below.

Before you start researching

You might be thinking great, I’ll just call my current lender and ask them to remortgage. And that makes sense - but your lender only has access to their mortgage products.

2 years, your fixed term period, is a long time, and there may be new great low rates out there that are far better than your current lender.

It’s worth checking the whole of the market. And that’s done by using a mortgage broker, one with access to every mortgage deal. And better yet, these mortgage brokers actually have access to deals you can’t get direct from your lender! 

These are called intermediary-only deals, so you could end up back with your current lender, but on an even better rate than if you called them yourself. Funny how mortgages work!

How to remortgage and save

So all you need to do first is choose a mortgage broker. Our criteria for brokers is:

Searches the whole market – The only way to find the best deal is to search every deal.

Free – Remortgages can be fairly straightforward, so its' fine to use a free broker who won't charge a fee. But if you'd like a more personal service from an independent broker, that's fine too, but you may be charged a fee.

Online – Technology can search the market instantly now and everything can be handled online, so no need for any paperwork or hours being on hold! And you can still chat to the mortgage adviser via live chat if you have questions. But if you prefer the traditional face-to-face, that’s fine too.

After you have picked a mortgage broker, the next step, normally in 15 minutes or less, is to fill out a short form with the broker about your current mortgage and your personal circumstances. And then put the kettle on, sit back and relax - they’ll do everything else for you.

That’s all there is to it, you’re all set! Super easy to remortgage and save hundreds per month.

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Ash Jensen (CeMAP)
Ash Jensen (CeMAP)

Director & Head Broker of Make My Mortgage

Ash has more than 20 years’ experience in the mortgage industry, making him a true expert when it comes to anything to do with mortgages (trust us, anything that Ash doesn’t know about mortgages isn’t worth knowing!).

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