Fixed Rate Mortgage Ending: What You Need to Do

Your fixed rate mortgage is ending. Or maybe it ended last month and you’ve been meaning to do something about it.

Either way, you’re probably paying more than you need to right now.

Here’s the thing. When your fixed deal expires, your lender doesn’t ring you up and negotiate a better rate. They quietly shift you onto their standard variable rate. And that rate, as of May 2026, averages around 7.13% across the UK (Uswitch, May 2026).

If you were on a two-year fix taken out in 2024, you were probably paying somewhere around 5%. If you locked in during the pandemic, your rate may have been as low as 1.5%.

The jump to an SVR can add hundreds of pounds to your monthly payments overnight.

The good news? You have options. And the sooner you act, the more of them you’ll have.

What Actually Happens When Your Fixed Rate Ends?

Nothing dramatic. No letter through the door saying “your mortgage has changed.” No alarm bells.

Your lender simply moves you onto their standard variable rate (SVR). This is the default rate your lender charges when you’re not on a specific deal. It’s set by the lender, not the Bank of England, and it can change at any time.

Most lenders will send you a letter or email a few months before your deal expires, letting you know what’s coming. But it’s easy to miss. And if you don’t act, you start paying the SVR from the day after your fix ends.

How Much More Could You Pay on an SVR?

Let’s put some real numbers on this.

Say you have a £200,000 mortgage with 20 years remaining. Here’s what your monthly repayments look like at different rates:

The difference between a competitive five-year fix and the average SVR on a £200,000 mortgage is roughly £284 per month. That’s £3,408 per year you’re handing to your lender for no good reason.

Even moving from the average SVR to the average two-year fix saves you around £151 per month.

The message is clear: doing nothing is the most expensive option.

When Should You Start Looking at Your Options?

Most lenders allow you to lock in a new deal three to six months before your current rate expires. Some allow even longer.

This is called a rate reservation. You secure a rate now, but you don’t actually switch until your current deal ends. If rates drop between now and then, many lenders will let you switch to the lower rate before completion.

Starting early gives you several advantages:

• More time to compare. You’re not making a panicked decision the week your deal expires.
• Rate protection. If rates rise before your deal ends, you’ve already locked in.
• Flexibility. If rates fall, you can often rebook at the lower rate.
• Broker access. Good mortgage brokers get busy. Booking early means better service.

If your fixed rate ends in the next six months, now is the time to act.

Your Options When Your Fixed Rate Ends

You have five main routes. Each has trade-offs, and the right one depends on your circumstances.

1. Remortgage to a New Lender

This means moving your mortgage to a different bank or building society to get a better deal.

How it works: You apply for a new mortgage with a different lender. They pay off your old mortgage, and you start making payments to them instead. A standard remortgage typically takes four to eight weeks from application to completion.

Pros:

• Access to the widest range of deals across the entire market
• Opportunity to release equity if your property has increased in value
• Potentially the lowest rates available
• Can restructure your term, overpayment allowance, or payment type

Cons:

• Requires a full application, including income verification and affordability checks
• May involve arrangement fees (typically £1,000 to £2,000 on the best rates)
• Needs a property valuation (though many lenders cover this cost)
• Takes longer than a product transfer

Best for: Homeowners with good credit, stable income, and time to shop around. Particularly worthwhile if your current lender’s rates aren’t competitive or you want to borrow more.

2. Product Transfer (Stay with Your Current Lender)

A product transfer means switching to a new deal with the lender you’re already with.

How it works: Your lender offers you a menu of new rates. You pick one, sign some paperwork, and the new rate kicks in when your current deal expires. Most product transfers are confirmed within one to five business days.

Pros:

• Fast and simple. Minimal paperwork
• Usually no new valuation or affordability assessment required
• No legal fees
• Rates for existing borrowers are often competitive with, or even better than, rates available to new customers

Cons:

• Fewer products to choose from
• Cannot release equity or change your loan amount
• You might miss a better deal elsewhere

Best for: Homeowners who want simplicity, those who might struggle with a full affordability assessment, or anyone whose current lender’s rates are already competitive.

3. Switch to a Tracker Mortgage

A tracker mortgage follows the Bank of England base rate plus a fixed margin set by the lender. As of May 2026, the base rate sits at 3.75%.

How it works: Your rate moves up or down in line with the base rate. If the base rate drops, your payments fall. If it rises, they increase.

Pros:

• If base rate cuts materialise, your payments will reduce automatically
• Most trackers carry no early repayment charges, giving you flexibility to switch at any time
• Can be cheaper than a fix if rates are on a downward trend

Cons:

• No certainty over monthly payments. Budgeting becomes harder
• If the base rate rises, your payments go up immediately
• You’re essentially betting on the direction of interest rates

Best for: Homeowners who can absorb some payment fluctuation and believe rates are heading down. Also suits those who want flexibility to remortgage again without penalty.

4. Overpay Your Mortgage

If you have spare cash, making overpayments can reduce your outstanding balance and the total interest you pay over the life of the mortgage.

How it works: Most lenders allow you to overpay by up to 10% of your outstanding balance per year without triggering early repayment charges. You can usually make lump sum payments or increase your monthly direct debit.

Pros:

• Reduces total interest paid over the mortgage term
• Lowers your loan-to-value ratio, which can unlock better rates when you next remortgage
• Shortens your mortgage term

Cons:

• Money is tied up in the property. You can’t easily access it again
• Does not reduce your monthly payment immediately (unless you specifically request a recalculation)
• May be better used in higher-interest savings or paying off unsecured debts first

Best for: Homeowners with savings sitting in low-interest accounts, or those approaching retirement who want to reduce their mortgage balance.

5. Sell Your Property

If your monthly payments have become genuinely unaffordable and your circumstances have changed, selling may be the most practical option.

This isn’t giving up. It’s making a clear-headed financial decision.

You might sell if:

• Your income has dropped and you can’t meet the new repayments
• You’re in negative equity and can’t remortgage
• The property no longer suits your needs (separation, relocation, downsizing)
• You’re a landlord and the numbers no longer work
• You’re facing repossession and want to sell on your own terms before the lender forces the issue

Selling on the open market will typically get you the best price, but it takes time. The average sale takes four to six months from listing to completion.

If time is against you, a cash buyer can complete in as little as two to four weeks, though offers are typically below full market value.

What About Early Repayment Charges?

If your fixed deal hasn’t actually ended yet, you may face an early repayment charge (ERC) for leaving before the term is up.

ERCs are calculated as a percentage of the outstanding mortgage balance. They typically slide downwards over the term of the deal:

Once your fixed period has ended, there is no early repayment charge. You’re free to remortgage, make a product transfer, or repay in full without penalty.

If you’re still within your fixed period but want to leave early, speak to a mortgage adviser. Sometimes the savings from a better rate outweigh the ERC, but it requires careful calculation.

Most fixed rate mortgages are also portable. If you’re moving house, you can usually transfer your existing deal to the new property without triggering the ERC, provided the new property meets the lender’s criteria.

Should You Fix for Two Years or Five?

This is one of the most common questions, and there’s no universally right answer.

Here’s how the current market breaks down:

Source: Which? Best Mortgage Rates, May 2026

Choose a two-year fix if:

• You believe rates will come down and want to remortgage sooner at a lower rate
• You might move house within two years
• You’re comfortable with the admin of remortgaging again relatively soon

Choose a five-year fix if:

• You want certainty and peace of mind over your monthly budget
• You plan to stay in the property for at least five years
• You want to avoid remortgaging fees and hassle for longer
• You’re worried rates could rise further

Right now, the gap between average two-year and five-year fixes is unusually small. That makes five-year deals relatively good value for those who prize stability.

But remember: this is mortgage advice territory, and a whole-of-market broker can model the numbers for your specific situation.

Step-by-Step: What to Do Before Your Fixed Rate Ends

Here’s a practical timeline to follow:

• Six months before your deal ends: Check your current mortgage statement. Note your outstanding balance, remaining term, and when exactly the fixed period expires. Check your lender’s SVR so you know what you’ll default onto.
• Five months before: Speak to a whole-of-market mortgage broker. They can search the entire market for you, including deals not available directly from lenders. Many brokers charge no upfront fee.
• Four months before: Get a mortgage agreement in principle from your preferred lender. This doesn’t commit you, but it confirms how much you can borrow and at what rate.
• Three months before: Lock in your new rate. Most lenders will hold a rate for you until your current deal expires. If rates drop before completion, many will let you switch to the lower rate.
• One month before: Confirm everything is in place. Check with your broker or lender that the transition will happen seamlessly on the day your current deal expires.
• Day your fix ends: Your new deal should kick in automatically. If it doesn’t, call your lender immediately. Every day on the SVR costs you money.

What If You Can’t Remortgage?

Not everyone can walk into a new deal. Several situations can make remortgaging difficult:

You’ve Failed Affordability Checks

Lenders stress-test your ability to pay at higher rates. If your income has dropped, your outgoings have increased, or you’ve taken on new debts, you might fail affordability. In this case, a product transfer with your current lender is often still possible, since many lenders don’t re-run full affordability assessments for existing borrowers.

Your Property Has Fallen in Value

If your loan-to-value (LTV) ratio has worsened because property values have dropped, you may not qualify for the best rates. You could be stuck with higher-LTV products or unable to remortgage at all. Overpaying to reduce your balance can help bring the LTV down.

Your Credit Score Has Dropped

Missed payments, defaults, or CCJs on your credit file will limit your options. Some specialist lenders cater to people with adverse credit, but rates will be higher. A mortgage broker who specialises in adverse credit can be particularly helpful here.

You Have an Interest-Only Mortgage

If you’re on an interest-only mortgage and the term is approaching, remortgaging becomes more complex. You’ll need to demonstrate a credible repayment vehicle (savings, investments, or a plan to sell the property).

This is a situation we see frequently. A significant proportion of sellers who come to cash buyers have interest-only mortgages that are nearing the end of their term, and they need to sell to repay the capital.

Frequently Asked Questions

What happens if I do nothing when my fixed rate ends?

You’ll automatically move onto your lender’s standard variable rate (SVR). This is almost always higher than the fixed rate you were on. As of May 2026, the average SVR is around 7.13%, compared to average fixed rates of 5.70% to 5.81%. You’ll pay more each month until you actively switch to a new deal.

Can I remortgage before my fixed rate ends?

Yes. Most lenders allow you to lock in a new deal three to six months before your current rate expires. This is called rate reservation. The new rate won’t kick in until your fix ends, so you avoid early repayment charges whilst still securing a competitive rate in advance.

Will I have to pay early repayment charges?

Only if you leave during your fixed period. Once your fixed term has ended and you’ve moved onto the SVR, there are no early repayment charges. ERCs during a fixed period typically range from 1% to 5% of the outstanding balance, decreasing each year.

Is a product transfer better than remortgaging?

It depends on your situation. Product transfers are faster (one to five days versus four to eight weeks), require less paperwork, and often don’t require new affordability checks. But remortgaging gives you access to the whole market and the ability to release equity. A mortgage broker can compare both options for you.

Should I switch to a tracker mortgage instead of a fix?

A tracker can be attractive if you believe the Bank of England will cut rates, since your payments will drop automatically. Most trackers also have no early repayment charges, giving you flexibility. The risk is that if rates rise, your payments increase too. Your appetite for risk and your ability to absorb payment changes should guide this decision.

What if I can’t afford my mortgage after the fixed rate ends?

Contact your lender immediately. Under the Mortgage Charter, no home will be repossessed within 12 months of the first missed payment unless there are exceptional circumstances. Your lender may offer options such as extending your term, switching to interest-only temporarily, or adjusting your payment schedule. If your situation is more serious, selling the property before arrears build up is usually better than waiting for the lender to force the issue.

How much does it cost to remortgage?

Typical costs include: arrangement fees (£0 to £2,000 depending on the deal), valuation fees (often covered by the new lender), and legal fees (also frequently covered as an incentive). Some “fee-free” deals charge a slightly higher interest rate instead. A broker can help you work out whether a low-rate, high-fee deal or a slightly higher rate with no fees works out cheaper over the term.

Can I remortgage if I’m self-employed?

Yes, but you’ll typically need at least two years of accounts or SA302 tax calculations. Some lenders accept one year. A broker who specialises in self-employed mortgages can match you with appropriate lenders. Product transfers may be simpler since your existing lender already knows your payment history.

When Selling Might Be the Right Move

For most homeowners, the answer to a fixed rate ending is straightforward: remortgage or take a product transfer.

But for some, the maths simply doesn’t work any more.

Maybe your income has changed. Maybe you’re a landlord and the higher mortgage costs have wiped out your rental yield. Maybe you’ve been on interest-only and the clock is running out.

Around 60% of the properties we buy at Property Rescue come from landlords who are exiting the market or homeowners whose interest-only mortgage is about to expire. Most people who come to us have already tried selling on the open market first.

If you’re in a position where you need to sell, the key is to do it on your own terms, not your lender’s.

Selling through an estate agent will get you the best price, but takes four to six months on average. If you’re facing a deadline, such as mortgage arrears building up, a repossession hearing, or a term expiring, that timeline doesn’t always work.

A cash buyer can complete in two to four weeks. The trade-off is a lower price (typically 75-85% of market value), but you get speed, certainty, and no risk of the sale falling through.

The Mortgage Charter: Your Safety Net

If you’re worried about affording your mortgage after a rate change, it’s worth knowing about the Mortgage Charter.

Introduced by the UK government and signed by major lenders, it provides several protections for struggling borrowers:

• No repossession within 12 months of the first missed payment (except in exceptional circumstances)
• The ability to switch to interest-only payments for six months without it affecting your credit score
• The option to extend your mortgage term to reduce monthly payments, with the ability to switch back within six months
• No early repayment charge if you need to leave during a fixed period due to financial hardship

These measures don’t solve the underlying problem, but they buy you time to find a proper solution.

If you’re in financial difficulty, your first call should be to your lender. You can also get free, independent help from Citizens Advice or StepChange.

Current Mortgage Rates at a Glance (May 2026)

Sources: Bank of England, Uswitch, Which? (May 2026). Rates change daily. Always verify current rates with a mortgage broker.

What to Do Right Now

If your fixed rate is ending soon, here’s your action list:

1. Check your mortgage statement. Find out exactly when your deal expires and what SVR you’ll move onto.
2. Speak to a mortgage broker. A whole-of-market, FCA-regulated adviser can search hundreds of deals and find the best option for your situation. Many charge no upfront fee.
3. Compare remortgage vs product transfer. Don’t assume one is automatically better. Get quotes for both and compare the total cost over the deal period, including fees.
4. Lock in a rate early. If you’re happy with a deal, secure it. You can always rebook if rates drop.
5. If you’re struggling, talk to your lender. They have a duty to work with you. The Mortgage Charter gives you protections. Don’t bury your head in the sand.

The worst thing you can do is nothing. Every month on the SVR is money you’re giving away.

Get a free, no-obligation cash offer from Property Rescue. No fees. No legal pack. No risk. Call 020 8634 0224 or get your free cash offer online.