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What should I do when my cheap fixed-rate mortgage ends?

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UKUpdated 6 October 2026 · Written by BuyMeWhiskey Editorial Team · How we check facts

Book a new deal up to six months before your fix ends so you don't drop onto the higher standard variable rate, compare a product transfer with remortgaging on total cost, and avoid paying an early repayment charge just to leave a cheap rate early.

Work out your new payment: put your balance, remaining term and a new rate into the mortgage repayment calculator, then compare deals.

Open the Mortgage repayment calculator

What happens when a fixed rate ends

When your fixed or introductory deal finishes, you'll usually move onto your lender's standard variable rate (SVR). MoneyHelper says SVRs are usually higher than other rates you could get. If your deal was fixed when rates were very low, any new deal will probably cost more, so the aim is to keep the jump as small as you can and avoid sitting on the SVR.

A simple timeline

About 6 months before the end: MoneyHelper suggests you start shopping around at least six months before your deal reverts to the SVR. Under the Mortgage Charter, signed by most lenders, you can lock in a deal up to six months ahead. Check your own lender's window, because six months is the maximum.
Once you've locked in: keep an eye on rates. The Charter says you can ask for a better like-for-like deal with your lender until the new term starts. Rates have to be finalised two weeks before it does.
The end date: the new deal starts and there's no SVR gap. If you're moving to a different lender, the solicitor arranges completion for that date.

Your two main options

Product transfer with your current lender

This is a new deal from the lender you already have. Under the Mortgage Charter, customers who are up to date with payments can switch at the end of a fixed rate without another affordability check. That's as long as you're not borrowing more or changing the term or repayment type. It's usually quick and involves less paperwork.

Remortgage to a new lender

This means a new application. The lender has to check you can afford the mortgage under FCA rules, so expect to show proof of income and outgoings. There may be a better rate, but compare the whole cost, including arrangement, valuation and legal fees. MoneyHelper's own example shows a lower rate with a £2,000 fee costing more overall than a slightly higher rate with no fee.

Should you leave early and pay the early repayment charge?

An early repayment charge (ERC) applies if you leave a fixed deal before it ends. It only makes sense to pay it if what you'd save over the rest of the term is more than the charge. For a cheap fix, that's rarely the case: a new deal will probably cost more than what you pay now, not less. For most people the better plan is to book a new deal for when the current one ends and keep paying the cheap rate until then.

Ways to soften the jump

Overpay while your rate is low, if your deal allows it without a charge (check your offer). A smaller balance means a smaller payment at the new rate. Keep an emergency fund first.
Lower your loan-to-value. MoneyHelper explains that a lower LTV can unlock cheaper rates. Paying down the balance or a rise in your home's value can move you into a better band.
Extend the term to reduce payments. The Charter lets customers who are up to date extend their term and go back to the original term within six months, without a new affordability check. It costs more overall, and an affordability check is needed if the term would run past your expected retirement.
Budget for the new payment now. Set aside the difference each month so the change doesn't come as a shock.

Common mistakes

Letting the deal lapse onto the SVR by accident.
Comparing headline rates and ignoring fees.
Booking a product transfer and a remortgage at the same time without cancelling one.
Paying a large ERC to switch to a rate that's higher anyway.
Locking into a long fix with big ERCs when you may move house soon. MoneyHelper warns about this.

If you're worried you can't afford the new payment, talk to your lender before the deal ends. Free debt advice is available through MoneyHelper's debt advice locator.

Monthly payment on £150,000 over 20 years

Worked example

£150,000 left to pay over 20 years, on a repayment mortgage. The rates below are illustrative.

Scenario	Monthly payment
Current fix at 1.9%	£751.74
New fix at 4.5%, 20 years	£948.97
New fix at 4.5%, term extended to 25 years	£833.75
SVR at 6.5% (doing nothing)	£1,118.36

Moving from 1.9% to 4.5% adds £197.23 a month, or £2,366.76 a year. Doing nothing and sitting on a 6.5% SVR would cost £169.39 a month more than the new 4.5% fix. Extending the term to 25 years brings the payment down to £833.75, but total interest rises from £77,753.78 to £100,124.62, which is £22,370.84 more over the life of the loan.

Is a £2,000 early repayment charge worth paying? Here, no. Leaving early would mean paying £2,000 to give up a 1.9% rate for a 4.5% one. Booking the new deal up to six months ahead and keeping the 1.9% rate until the end date costs nothing extra.

Put your own balance and rate into the mortgage repayment calculator to see your figures.

What happens when my fixed-rate mortgage ends?#

You'll usually move onto your lender's standard variable rate. That's usually higher than other deals available, though there's usually no penalty for leaving it. To avoid it, book a new deal to start the day your fix ends.

How early can I lock in a new mortgage deal?#

Under the Mortgage Charter you can lock in a deal up to six months before your fix ends, though lenders can choose a shorter window. You can still ask for a better like-for-like deal until the new term starts. Rates have to be finalised two weeks before then.

Should I do a product transfer or remortgage to a new lender?#

A product transfer with your lender is usually quicker, and if you're up to date and not borrowing more or changing the term, there's no new affordability check. A remortgage may find a better rate but needs a full application and may involve legal and valuation costs. Compare the total cost of each, including fees.

Will I need an affordability check to switch with my existing lender?#

Not under the Mortgage Charter, if you're up to date with payments and not borrowing more or changing your term or repayment type. The Charter says this covers about 97% of the mortgage market. A new lender will always assess affordability.

Is it worth paying an early repayment charge to switch now?#

Only if the saving over the rest of your current deal is bigger than the charge. If you're on a cheap fix, new rates are usually higher, so leaving early just costs you the charge. Booking ahead for the end date is normally the better move.

Can I extend my mortgage term to lower my payments?#

Yes. Charter lenders let up-to-date customers extend their term without a new affordability check, and you can go back to the original term within six months. Your payments drop but the total interest goes up. A check is needed if the term would go past your expected retirement.

Should I overpay my mortgage before my fixed rate ends?#

It can help, because a smaller balance means a lower payment at the new rate and may move you into a cheaper loan-to-value band. Check your deal's overpayment allowance so you don't trigger a charge. Make sure you have emergency savings first.

Keep reading

Sources

Figures checked against these sources on 6 October 2026. If a rule changes, we update the page and its date.

General information, not personal financial advice. Rules depend on your circumstances; check the official source or speak to a regulated adviser before acting.