When fixed rate mortgage ends what happens?

What do I do when my fixed rate mortgage ends?

It’s a really good question, especially for First Time Buyers or those who haven’t changed their mortgage in a long time.

If you left everything as it is, you would just fall onto the Standard Variable Rate, which is currently at about 7% – and probably quite a bit more than you’re currently paying [podcast recorded in June 2025].

But there are two other really good options – either switching your rate with your existing lender, or looking at a remortgage, where you see what the options are with all the wider providers out there.

Why would someone choose a fixed rate mortgage in the first place?

A lot of it boils down to the sort of person you are and what you actually want from your mortgage. With a fixed rate mortgage, the rate stays the same for a period of time. It offers people stability and peace of mind. You know you can budget a certain amount per month for the mortgage, because that’s not going to change.

What is the longest that you can fix a mortgage for?

It depends on the lender, but generally you can fix for two, three, five, seven or 10 years.

Can I extend my fixed rate mortgage before it ends?

No. If, for example, you’re on a 3% rate at the moment, you wouldn’t just be able to contact your existing lender and ask to have that for a little bit longer. I wish it was as easy as that. They can’t just extend it.

However, you could contact your existing lender and choose a new product where you switch onto an existing rate with them. This is a common approach called a product transfer.

Will my mortgage automatically renew?

In short, no, there will be a bit of work to do. You’ve got three options – leave it as it is, change the rate with your existing lender or remortgage elsewhere.

Lenders normally write to you three to six months beforehand to give you a heads up. As a broker, we always contact our clients six months ahead to let you know your mortgage is up for renewal this year, and to suggest a chat to discuss it. But it won’t happen by itself – you need to take ownership.

Should I stay with my current lender or switch to another one? What are the pros and cons?

It really depends on your situation. In terms of sticking with your existing lender for a product transfer, the benefit is that it’s a much quicker, slicker process. The lender won’t do another valuation on your property or redo affordability checks and credit scoring. It’s just choosing a new rate with them based on what’s best for you.

The downside to that is that you don’t know if you’re getting the best deal available to you – because you’re just honed in on one lender. There might be other banks that could offer you a better product and save you money per month.

The pros and cons of sticking with your existing lender are opposite to the pros and cons to changing to a new lender. With a remortgage, you’ve got every option available to you across the wider market. The downside is that you will have to go through a fresh mortgage application, affordability, credit score and valuation. It’s about assessing what’s right for you in what scenario.

Can the bank refuse to renew my mortgage?

With your existing lender, it’s extremely unlikely that they wouldn’t offer you a new product. They will almost always have an offer for you when your current rate ends.

However, if you were going to go to a new bank, it’s a brand new application, so it’s subject to underwriting and valuation. It’s unlikely you would be declined a mortgage, but if something has happened to your income or credit score, it’s possible. Naturally those things can go the other way.

Should I remortgage at the end of a fixed rate mortgage?

Again, it does depend on your situation. If your existing lender offers you a good rate, why would you look to move elsewhere? But, on the other hand, if you’ve got the opportunity to look elsewhere and can save money, why wouldn’t you do that?

How much will my mortgage increase when my fixed rate ends?

This has been a real topic of conversation for the last couple of years. At the time of recording this, in June 2025, we’ve been in a period where rates have been going up and mortgages are costing more. That’s unfortunately still the case for some people.

There’s no simple answer, because it depends on what sort of rate you’ve got now, what’s changed, what the lenders are offering and when you locked your original product in. It really does depend on your own personal circumstances.

Will there be any fees at the end of my fixed mortgage?

We’re not often asked whether a lender will charge you to finish your mortgage with them. You might wonder why they would – after all, you’ve paid the mortgage plus interest every month.

But the truth is, some lenders do have an exit fee, which could be anywhere between £80 and £100, generally speaking. In the grand scheme of mortgages, it’s not a huge amount of money, but it’s still a cost to consider.

People tend to be less focused on the costs incurred by closing that mortgage, and more on the costs for the new mortgage you choose. For example, if you switch your rate with your existing lender, they’ll usually offer you two different products, with and without a product fee. So there’s always that cost to consider.

How can a mortgage broker help here? Have you got anything else you’d like to add?

Based on our experience, we can quickly assess your situation and find a plan of action that will fit you best. We know which lenders will suit your scenario. We’ll be very quick to confirm your options, and set aside things that aren’t available to you.

My biggest advice is that the earlier you can speak to someone, the better, because you can set up a remortgage six months in advance of your fixed rate ending. Meanwhile, if you’re going to choose a new rate with your existing lender, you can only really do that three months before.

The beauty of securing something six months in advance is that you’re then protected if interest rates change after that point. Even having that conversation six to seven months out will make a world of difference – and protect you from any nasty surprises.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.