When a fixed rate mortgage ends what happens?

Should I stay with my current lender or switch to another one?

As long as you haven’t missed any mortgage payments and you aren’t in arrears, your existing lender will contact you with a new rate. You can choose a new product to move on to with that same bank.

That might be similar to what you currently have, and will be broadly in line with the rest of the mortgage market. If the average rate today on a two year fixed was 4%, generally your lender will offer you a similar rate to stay with them.

Whether you should stay or switch to another lender is really dependent on individual circumstances. I could check today and see that whilst you’re with Santander, for example, and they’re offering you a certain follow-on rate, but Barclays could be offering a much cheaper one.

If you meet their criteria, there’d be no reason why you shouldn’t switch to Barclays on a remortgage.

In the last year we’ve seen interest rates falling. We might have arranged a rate for a customer one day and then, over the next four or five months, that lender’s rate has got better. In that situation we can continually change the rate, again and again – and even switch to a new lender.

So whilst at the start the mortgage was going to cost a certain amount per month, four months later it might be £200 a month less.

Sometimes staying can be great, and other times changing can be equally great. To summarise, there’s no right or wrong – it’s all about the individual circumstances.The sooner that you have that conversation, the more time you will have to arrange a rate and be able to change it as needed.

What are the pros and cons of switching my fixed rate mortgage?

Ultimately it’s about saving money. Can we reduce the cost you’re currently paying per month? Can we keep doing that until that new rate’s going to start?

I can’t think of any negatives – unless it was going to cost you more money, but then we wouldn’t recommend you do it.

Can the bank refuse to renew my mortgage? Why would that be?

If you’re with a lender today and you ask them for a new rate, they can refuse, but they can’t take your mortgage away. You can continue to pay it and they can move you on to that Standard Variable Rate or follow-on rate.

They could refuse to offer you a new competitive rate. Generally, the only time that would happen would be if there was a credit issue, you were in arrears with your mortgage, or other adverse issues have come up since you took the mortgage out.

If you were to change from one lender to a new one, would we call that a renewal? Some people might, so it’s worth saying that when you apply with a new lender, you’re applying for a whole new mortgage again. They’re going to look at your income, your expenditure and your credit report.

There’s always the chance that they could turn you down because they’re assessing your application fresh.

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

Definitely. It can probably save you money, so it’s definitely a conversation to have.

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

It depends on the circumstances. Today, in June 2025, a lot of people will be coming off a fixed rate lower than what’s available now. A few people’s mortgage payments are actually increasing – ultimately it all depends on what’s going on in the market.

Fortunately, there’s a good thing happening at the moment, in that interest rates are decreasing. The Bank of England base rates have gone down, and fixed rates have also gone down. So we are starting to see some people making a saving.

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

Generally, no. If you change from one lender to another, sometimes there is a deed closure fee – that’s stated in the contract. It can range from about £50 up to about £225. It’s a fee that closes off one mortgage to start a new one.

Outside of that, no, there aren’t really any fees for ending. If you’re changing from one lender to another one, however, the new lender might charge some fees.

When a broker recommends you change lender, that’s something we would be considering and explaining to you. We wouldn’t want you to remortgage somewhere that has lots of fees involved and ends up costing you money.

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

This is probably one of the areas where we help people the most. When a fixed rate is ending, people always think they’re doing it too soon – but often they’re doing it too late.

Mortgage offers can last six months, so we actually reach out to our own clients seven months before their fixed rate ends. We can save you money, so get in touch as soon as possible.

It’s now June 2025, and if your deal is finishing in February I would love to take that call now and book in a conversation for three, four weeks time. Then we’ve got six or seven months to keep an eye on what’s happening with the market – and maybe even save you more money again in the months that follow.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

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

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.