What to Do When Your Fixed Rate Mortgage Is Ending

As a homeowner with a fixed-rate mortgage, you may wonder, “What happens when my fixed-rate mortgage ends?” When your fixed-rate period ends, you need to be prepared and take action to get the most suitable mortgage deal for your situation. This article will walk you through reviewing your mortgage as your fixed rate period comes to an end, exploring options and making informed decisions that will save you money and stress.

What Happens When My Fixed Rate Period Ends?

A fixed-rate mortgage term gives you stability with predictable mortgage payments and a locked-in interest rate. But what happens when the fixed-rate mortgage term ends? You’ll usually roll onto your lender’s standard variable rate (SVR). An SVR mortgage often has higher interest rates and mortgage payments, and a variable rate will be more unpredictable than your fixed rate. When this happens, it’s time to speak with your mortgage lender to find a new mortgage deal or consider finding a new lender offering a cheaper deal.

What is the Standard Variable Rate (SVR)?

Unlike with a fixed-rate mortgage deal, when you roll onto an SVR your interest rate isn’t fixed and can change at any time. This means your monthly payments could increase and impact your financial planning. Planning ahead, exploring other mortgage options and looking for a new deal are important and can help you save money over the life of your mortgage loan.

Timing is everything

The right time to start reviewing your mortgage is several months before your fixed-rate deal ends. This gives you time to research, compare and make a decision without the pressure of imminent rate changes.

Most lenders will let you agree on a rate up to three months before your current deal ends, but you may miss out on a better deal later. A mortgage broker or mortgage provider can advise on the current interest rate and rate predictions and help you find a new mortgage with affordable monthly repayments.

What do I need to do?

Knowing your fixed-rate deal is about to end is the first step. Here’s what you should do when your fixed-term mortgage ends:

Look for new deals before your fixed rate ends

Start looking for new mortgage deals at least 3-6 months before your fixed rate expires. This will give you time to find a new mortgage provider if necessary and get a good deal without rushing. The end of your fixed period is a good time to re-evaluate your financial situation and look for mortgage products that make financial sense for you.

Research lenders

Staying with the same lender at the end of your fixed-rate term might not pay off. Look at different lenders and what they offer. If you decide to switch lenders, mortgage brokers, online platforms and financial advisors can offer mortgage advice and help you compare rates, fees and terms to find the most suitable for you.

Compare rates and terms

Not all mortgage deals are the same. Before starting the remortgage process, look at interest rates, repayment terms and any fees or additional costs. A lower interest rate might look good but make sure it comes with good terms.

Remortgaging may carry certain fees, including a conveyancing fee, arrangement fee and valuation fee. Keep in mind that your fixed-rate deal may also have early repayment charges or other exit fees.

Lock in your rate

If you find a deal that works for you, consider locking in the rate. This will protect you from rate increases while you finalise the details.

Talk to your current lender before looking elsewhere

If you don’t want to move to a different lender and choose to roll over to your lender’s SVR, your current lender may have retention offers or loyalty discounts to keep you as a customer. These can include reduced rates or waived fees, so it’s worth talking to them before you commit to a new lender and go through the remortgaging process.

Evaluate the service

Consider the service from your current provider. Lenders who value you as a customer and offer good service are a big plus.

Check your budget

Reviewing your budget is key when considering a new mortgage. Make sure you know how different rates and terms will impact your mortgage repayments.

Calculate affordability

Use mortgage calculators to work out your monthly payments under different scenarios. This will help you know what monthly payment you can afford.

Add in extra costs

Consider extra costs such as lender fees, legal fees and any early repayment charge for your current mortgage. These can add up and affect your decision. A new provider may also perform a credit check and affordability assessment, which can impact your credit score.

Think long-term

Consider your long term financial goals and how your mortgage fits into them. A mortgage that fits your financial plan will give you stability and peace of mind.

How Eden Hawk Financial Solutions can help

When it comes to deciding what to do when your fixed-rate mortgage ends, it’s important to seek advice from industry experts. At Eden Hawk Financial Solutions we know how hard it can be to find the right mortgage deal. Our team are here to help you every step of the way.

Personal service

Whether this is your first mortgage or you’re a long-time property investor, we offer personal service tailored to your circumstances. Our advisors will take the time to understand your needs and provide recommendations that suit you.

Market scanning

Eden Hawk will scan the market for deals that suit your circumstances. We’ll compare rates, terms and fees like early repayment charges to get you the most suitable deal.

Expert advice

Our team will guide you through the process. From initial consultation to finalising your mortgage we’ll be here to answer your questions and support you through the entire mortgage process.

Final Thoughts

Reviewing your mortgage when your fixed rate is ending is a big job that requires thought and planning. By understanding what happens when your fixed rate mortgage ends, looking at new deals, talking to your current lender, checking your budget and seeking advice from Eden Hawk Financial Solutions you’ll be ready to make the right decision for your future.

Ready to discuss your next mortgage plans? Contact Eden Hawk Financial Solutions today.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.