What to Do at the End of Your Mortgage Deal

Reaching the end of your mortgage deal is both exciting and a little daunting. Whether you’ve been on a fixed rate, tracker, or discounted mortgage, the day will eventually arrive when your agreed deal runs out. At this point, many homeowners wonder: what happens next, and what should I do to avoid paying more than I need to?
Let’s walk through everything you need to know when your mortgage deal ends, the options available to you, and the steps you can take to make the most of your hard-earned money.

What Happens When Your Mortgage Deal Ends?

In the UK, most mortgage deals last between two and five years. Once that period comes to an end, you’ll automatically move onto your lender’s Standard Variable Rate (SVR). This is usually higher than the deal you’ve been on and is directly controlled by your lender, often moving in line with the Bank of England base rate.
For many borrowers, this means higher monthly payments. That’s why it’s crucial to prepare in advance and review your options before your deal expires.

Your Main Options at the End of a Mortgage Deal

When your mortgage deal finishes, you generally have three main paths to consider:

1. Remortgage with Your Current Lender (Product Transfer)

One of the simplest routes is to stay with your current lender but switch to a new deal. This is often called a product transfer. It usually involves less paperwork than moving to a new lender, and you won’t need to go through the full legal process again.

Pros:

• Quick and straightforward
• No solicitor fees
• No need to prove income again in some cases
  Cons:
• The deal may not be the most competitive compared with other lenders

2. Remortgage with a New Lender

This option often gives you the best chance of finding a lower rate. A remortgage involves moving your loan to a different provider. You’ll need to go through the full application process again, including credit checks, affordability assessments, and legal paperwork.

Pros:

• Access to potentially better rates and products
• Chance to switch to a deal that suits your lifestyle and future plans
  Cons:
• Takes longer than a product transfer
• May involve valuation and solicitor costs (although many lenders cover these in remortgage deals)

3. Stay on the Standard Variable Rate

You can do nothing and remain on the SVR. This may appeal if you want complete flexibility, for example if you plan to sell your home soon and don’t want to tie yourself into another deal.

Pros:

• No early repayment charges if you want to pay off or reduce your mortgage
• Total flexibility
  Cons:
• Usually higher interest rates
• Your monthly payments can go up without warning

When Should You Start Looking?

It’s best not to leave it until the last minute. Most lenders allow you to secure a new deal up to six months before your current one ends. This gives you plenty of time to compare offers, seek advice, and lock in a competitive rate before your payments increase.

Should You Use a Mortgage Broker?

A mortgage broker can take much of the legwork off your shoulders. They’ll compare deals across the market, explain the fine print, and help you decide which option best suits your financial goals. Many UK homeowners find brokers invaluable, especially when dealing with complex circumstances like self-employment, bad credit history, or buy-to-let mortgages.

Key Considerations Before Choosing Your Next Step

• Early Repayment Charges: Check if leaving your current deal before the official end date will trigger a fee.
• Arrangement Fees: Some of the lowest interest rates come with hefty upfront charges. Always weigh the true cost of the deal.
• Loan to Value (LTV): If your property value has gone up or you’ve paid off a chunk of your mortgage, you may qualify for lower rates.
• Future Plans: Think about whether you’ll stay in your home long term or if moving could be on the horizon.

Practical Steps to Take

1. Check when your current deal ends – make a note in your calendar.
2. Review your finances – consider your income, expenses, and future stability.
3. Research your options early – use comparison sites, but also look beyond the headline rates.
4. Speak to your lender and a broker – explore both avenues.
5. Secure your next deal – don’t wait until you’ve rolled onto the SVR if you want to save money.

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