What happens when your fixed-rate mortgage deal ends

A fixed-rate mortgage fixes your interest rate for a set term, commonly two or five years. What it does not do is end your mortgage. When the fixed period finishes you still owe the balance — what changes is the rate you pay on it.

What happens if you do nothing

You are normally moved onto your lender’s standard variable rate, or SVR. That rate is set by the lender and can move at their discretion. It is frequently higher than the deal you were on and higher than the new deals available, which is why doing nothing is rarely the cheapest option.

Because a mortgage is usually the largest payment in a household, a rate change here moves your monthly budget more than every subscription you own put together.

Product transfer or remortgage

A product transfer means taking a new deal from your existing lender. It is usually the simpler route, often with lighter paperwork and no need to re-value the property.
A remortgage means moving to a different lender. It opens up the whole market but involves a full application, affordability checks and legal work.
Which is better is genuinely case-by-case. Simplicity has value if your circumstances have changed and passing fresh affordability checks is uncertain.

How early to start

Many lenders let you reserve a new deal several months before your current one ends — often around six. Booking early can protect you if rates rise, and you can usually switch to a better deal if rates fall before completion, though that depends on the lender.

Check whether an early repayment charge applies if you move before the fixed period is up. That charge is often what makes leaving early uneconomic, so it is worth knowing the number rather than guessing.

The date that matters

All of this hangs on one date buried in your mortgage offer, typically agreed years earlier and rarely looked at since. Nothing reminds you it is approaching until you are already on the SVR.