What to do when your fixed rate ends
What happens when a fixed-rate deal ends, the difference between a product transfer and a remortgage, when to start looking, and what else to review at the same time.
What happens when a fixed-rate deal ends, the difference between a product transfer and a remortgage, when to start looking, and what else to review at the same time.
When a fixed-rate deal ends, most mortgages move onto the lender's standard variable rate. That rate is usually higher than the deals available, so doing nothing can mean paying noticeably more each month.
Lenders and brokers can usually look at new deals several months before the fixed rate ends.
Starting around six months before the deal ends gives time to compare options without rushing. Some deals can be secured in advance and switched to when the current one finishes.
Leaving it to the last few weeks narrows the choice and increases the chance of time on the standard variable rate.
The end of a fixed rate is a good time to look at the whole mortgage. Ask yourself what else has changed since the last deal.
Often not for a product transfer; more likely for a remortgage.
Usually only by paying an early repayment charge, unless you are close to the end of the deal.
It depends on how much certainty you want and what the rates are at the time.
Contact your mortgage broker several months before your deal ends. While you are reviewing the mortgage, ask them whether anything else should be looked at, including your protection and, where it is relevant, an introduction to a financial planner.
This article explains how things work. It does not take your circumstances into account. Your mortgage broker can introduce you to a regulated financial planner at Equity & General where the question needs one.
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