Fixed rate ending? Don’t get left out in the cold.

As winter chills linger, many UK homeowners may find themselves facing a different kind of cold reality, the end of their fixed-rate mortgage. 

If your fixed rate is coming to an end soon, it’s time to act to avoid being caught out by higher payments and uncertainty. Here is what you need to know to stay financially warm and secure.

What happens when your fixed rate ends?

When a fixed-rate mortgage term finishes, your loan typically reverts to the lender’s standard variable rate (SVR). The SVR can often be significantly higher than your fixed rate and is subject to fluctuations, meaning your monthly payments could increase unpredictably.

For example, if your fixed rate was 2.5% and your lender’s SVR is 6%, this could mean hundreds of pounds extra in monthly repayments. Taking proactive steps now can help you avoid this situation.

Plan ahead: Don’t wait until the last minute

It is best to start reviewing your mortgage options at least six months before your fixed rate ends. Many lenders allow you to secure a new rate up to six months in advance. This gives you ample time to compare options, seek professional advice, and lock in a deal before rates potentially rise.

Options to consider

• Remortgage to a new fixed rate - a remortgage allows you to switch to a new fixed-rate deal, often at a lower rate than the SVR. This provides stability and peace of mind with predictable monthly payments.

• Tracker mortgages - if you are comfortable with some fluctuation in rates, the tracker option may provide short-term savings. However, they come with the risk of higher payments if interest rates rise.

• Stay with your current lender  - your existing lender may offer a competitive deal for a product transfer. Always compare this option with others on the market to ensure it’s the best fit for you.

Why seek professional advice?

Navigating the mortgage market can be overwhelming, especially with changing interest rates and complex options. A mortgage adviser can:

1.    Assess your individual circumstances.

2.    Compare deals across multiple lenders.

3.    Provide expert guidance tailored to your needs.

Their advice could save you time, money, and stress, ensuring you make an informed decision.

Act now to save later

Waiting until your fixed rate ends could leave you paying more than necessary. By acting early, you can secure a competitive deal and protect yourself from the uncertainty of fluctuating rates.

Do not let the end of your fixed rate leave you out in the cold. Reach out to a mortgage adviser today to explore your options and keep your finances cosy this winter. After all, staying ahead of the game is the key to keeping within budget and your home warm and secure. 

Although every effort has been made to ensure that the information provided in this article is accurate and correct, the information provided does not constitute any form of financial advice. We recommend that you take financial advice before making any financial decisions.