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What Happens at the End of a Fixed Rate Mortgage?

Get the right advice on what to do when the fixed rate period of your mortgage comes to an end.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: August 20, 2021

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Fixed rate mortgages are often an excellent way to agree a great value mortgage with monthly repayments you know won’t change. However, all fixed rate deals must come to an end, and it’s not always easy to know what to do next or even to know what exactly happens at the end of a fixed rate mortgage term.

This depends on you, your lender and what plans you’ve made. In many cases homeowners choose to agree another, new fixed rate mortgage deal. In others they might not, but then their mortgage payments could rise and by quite a lot.

If you’re on a fixed rate mortgage deal that is coming to an end, it can be a good idea to speak with a mortgage advisor. They can help you decide what to do next and also explain what will happen when your existing fixed rate mortgage deal comes to an end.

To give you more of an idea of what will happen, we’ve written this article.

What happens when my fixed rate mortgage term ends?

When most fixed term mortgages end, the lower rate that was agreed for that fixed term changes and reverts to the lender’s standard variable rate, or SVR. In many cases the SVR rate is higher than that of the fixed rate which means the homeowner’s monthly mortgage payments will rise.

What are my options when my fixed rate mortgage ends?

If this is something you’re aware of an happy with, then it’s fine to just let your fixed rate term and your mortgage interest payments to be calculated in line with the SVR.

However, if you’re not happy with this scenario you do have other options. They include:

In order to ensure you agree the best new mortgage deal for your specific needs, speaking with a qualified and experienced mortgage advisor, like those we work with, can be a good next step. They can answer all your questions about what happens when you fixed rate mortgage ends, what your options are and what the best way forward for you would be.

Can I renegotiate after my fixed rate mortgage ends?

When your fixed rate mortgage ends, you can find a new mortgage deal, fixed rate or otherwise, that you like to apply for. What happens after your fixed rate period ends, is the same if your mortgage was fixed for 2,3,4 or 5 years However, you can’t renegotiate your fixed rate deal.

If the rate you were on was particularly good, then you can look around for the different mortgage deals on offer. It’s highly unlikely that a lender will let you select your preferred mortgage interest rate if it isn’t available in another product.

One way to ensure you get the best possible fixed rate mortgage deal after your existing one ends, is to speak with a mortgage advisor. They can answer all your questions relating to what happens when your fixed rate mortgage ends. They can also help you find the best mortgage product and rate for your specific needs.

Should I remortgage after my fixed term ends?

Remortgaging after your fixed term rate ends depends entirely on you and your circumstances. For many people agreeing to a new fixed rate mortgage is the right thing to do. Particularly when there are some good deals with low mortgage interest rates available.

However, in other cases the SVR your mortgage reverts to might be the right thing for you to do. There won’t be any new fees involved and even though it will be higher than your fixed rate deal, it may not be too much higher than the other fixed rate and other mortgage options that are available at the time.

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Can I overpay my monthly mortgage payments after my fixed term ends?

If you revert back to your lender’s SVR then its likely you’ll also be able to overpay your monthly mortgage, but there could be a cap or limit as to how much. However, it’s also some fixed rate mortgages allow overpaying during the fixed rate term, too, by up to 10%.

To find the terms of your existing fixed rate mortgage relating to overpayments you can take a look through your paperwork, contact your lender directly or make an enquiry to speak to a mortgage broker about your options (recommended).

If overpaying on your mortgage is important to you, or you would like to offset any savings you have against your mortgage interest payments, then it may be that another fixed-rate mortgage product isn’t right for you, once your fixed rate product ends.

Or if there are competitive fixed rate mortgage deals once your ends, a mortgage advisor can show them to you and help you select the right next step for your mortgage needs.

Speak with a fixed rate mortgages expert

If you want to know more about what happens at the end of a fixed rate mortgage and what your options are, then get in touch with Online Mortgage Advisor.

Call us on 0808 189 2301 or fill out our online enquiry form.

Our experienced team will then put you in touch with the right mortgage advisor for your needs. One who’s experienced in fixed rate mortgages and remortgaging. They can answer all your questions and help you move forward once your fixed rate mortgage comes to an end.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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