Stick or twist: What should you do when your fixed rate ends?

Your fixed rate ending sounds like a bit of admin. A letter arrives, you pick a new deal, job done. In reality there's a bit more to it than that, and when you start looking can make quite a difference to the choices you end up with.

So, do you stay with the lender you've already got, or do you move somewhere new? There are good reasons for both, and plenty of people get to the end of their deal without really looking at either. That's a shame, because a little planning goes a long way here.

Stick or twist when a fixed rate ends?

Mortgage advisers are a bit like the one person in the family who knows about cars. Nobody rings them while everything's running smoothly, but the minute a warning light comes on, their phone goes. With mortgages, that warning light is usually the letter telling you your fixed rate is coming to an end (and it always seems to land somewhere between the bonfire night sparklers and the first big Christmas shop, which isn't a great time for anybody's bank balance).

What to do when a fixed rate ends is one of the most common questions advisers get asked, and fair enough. It's a big decision dressed up as a small bit of paperwork. So, here's a proper look at what your options are.

Before going any further, it's important to say that everybody's circumstances are different, and a blog like this one can't possibly cover them all. This is general information rather than advice. Talk to a mortgage adviser about your own situation before you decide anything, because the right answer for your neighbour might not be the right one for you.

What actually happens when your fixed rate ends

Well, if you do nothing at all, in most cases you'll move onto your lender's standard variable rate, or SVR. Each lender sets its own SVR, it can change at any time, and it's usually higher than the deals that same lender offers to people who choose one. In fairness, you can normally leave an SVR without a charge, so it isn't a trap. It's just not somewhere most people would choose to sit for long.

It's worth knowing that the rules differ from product to product. Since 2022, home and motor insurers haven't been allowed to quote a renewing customer more than they'd quote someone new. There's no equivalent rule for mortgages, which is simply a good reason to look at your options rather than let the deal roll over on its own.

The good news is you don't have to wait for the letter to land. Many lenders will let you secure a new deal before your current one ends, often somewhere between three and six months ahead. That doesn't mean your new rate starts early. It means the deal is arranged and sitting there waiting, so on the day your fix finishes you move straight from one to the next.

That head start matters more than it used to. Lenders have been changing and pulling products very quickly, and a deal that's there one week might be gone the next. In October the average mortgage deal stayed on the market for just 13 days, against 43 days back in 2019. Starting early gives you time to compare properly rather than grabbing whatever's left in the final fortnight. You won't be the only one doing it, either. UK Finance expected around 1.8 million fixed-rate mortgages to come to an end during 2026.

Sticking with your current lender

Staying with the lender you've already got is called a product transfer. Your lender will often get in touch before your deal ends with a list of the rates they can offer you, you pick one, and it starts when your current deal finishes. For plenty of people, it's the right answer.

The main appeal is that it's usually simpler. There's normally no valuation and no legal work, so a lot of the usual mortgage faff just isn't there, and it can often be sorted fairly quickly. And if you're not borrowing any more and nothing else important is changing, your lender often doesn't need to go through your finances in full again.

That last part can make a real difference. Say you took your mortgage out while you were employed, and since then you've gone self-employed, or you've cut your hours to look after the kids. A new lender would want to look at all of that from scratch. Your existing lender often won't need to, which can make staying put the easier and more sensible option.

But there's a catch. With a product transfer you're only seeing one lender's deals. Your lender might well have something good for you, and sometimes they will. You just won't know how it compares unless somebody looks at the wider market too, and that's the bit people tend to skip because the letter makes it all look so easy.

Moving to a new lender

Moving your mortgage to a different lender is called a remortgage. You stay in the same home, but your mortgage is paid off by a new lender and you start a fresh deal with them. The big advantage is choice. Instead of one lender's list, you're looking across the market, and that gives you something to measure your current lender's offer against.

It's also a good time to think about your loan-to-value, which is just how much you owe compared with what your home's worth. Lenders price their deals in bands, so where you sit can change what you're offered. For example, if you bought a home worth £200,000 with a £180,000 mortgage, you were borrowing 90% of its value. Say a few years later you owe £160,000 and the home is still worth £200,000. You're now at 80%, which puts you in a different band. If your home has gone up in value too, that gap can be bigger. If prices near you have dipped, it can work the other way, so it's better to know early.

In fairness, moving does mean more steps. A new lender will usually look at your income, outgoings and credit history again, and they'll normally want a valuation and some legal work done as well, although some lenders cover some or all of those costs on certain deals.

Remember the Christmas shop mentioned earlier? Well, this is where it matters. Taking on new credit, changing jobs or missing a payment while your application is going through can all cause problems, and lenders may check again before the new mortgage completes. So maybe hold off on that shiny store card offer at the till for a few weeks, and if something does change, let your adviser know rather than hoping nobody notices.

Looking past the headline rate

Now, this is the bit not to skip. The rate is the number everyone looks at first, but it's only part of the picture. A lower rate with a big fee isn't always cheaper overall than a slightly higher rate with a small fee or none at all, especially on a smaller mortgage where the fee makes up a bigger share of the cost.

Start with what a new deal costs to set up. Many deals come with an arrangement or product fee, and you can sometimes add it to the loan. That can feel painless on the day, but you'll then pay interest on it. If you're moving to a new lender there are usually valuation and legal fees on top, unless the deal includes them.

Then look at what it costs to leave the old one. Some lenders charge an exit or administration fee to close your account, and your original paperwork should tell you if yours does. The bigger one is the early repayment charge. If you leave a deal before it ends, your lender may charge you, usually a percentage of what you owe. Check the exact date yours stop, because it isn't always the date you've got in your head, and timing your new deal to start after that is the usual way round it.

Finally, have a think about your mortgage term while you're at it. Making it longer usually lowers your monthly payments but means paying interest for longer, and making it shorter does the opposite. Neither is right or wrong. It just needs to fit the rest of your life.

So, stick or twist?

Honestly, there isn't one right answer. Staying with your lender can be quick, simple and perfectly sensible, especially if your circumstances have changed since you first borrowed. Moving can open up more choice, particularly if your loan-to-value has changed since you last borrowed. What matters is seeing both options side by side, with the fees added in, while there's still time to choose rather than in the last week before your deal ends. Even if your fix has a while left to run, it's handy to know the exact end date and when any early repayment charges stop, so the letter doesn't catch you on the hop.

Whatever you decide, this is about you and your circumstances, not a quick yes or no answer. If your fixed rate ends in the next six months or so, get in touch with a mortgage adviser and go through it together. It's a lot easier to have that conversation now than in the middle of the Christmas rush.