UK Finance expects around 1.8 million fixed mortgage deals to come to an end during 2026. If yours is one of them, this is the post to read.
A lot of those deals were taken out in 2021, when rates were at historic lows and five-year fixes below 2% were commonplace. Coming off one of those onto today's pricing is a real jump, and it is better to see it coming than to meet it in a letter.
What happens if you do nothing
Your lender moves you onto their standard variable rate, usually called the SVR.
The SVR is almost always the most expensive rate your lender offers. It is not a penalty exactly, it is just the default, and defaults are rarely priced in your favour. It can also move whenever the lender decides, so you lose the certainty you had.
Doing nothing is a decision. It is just an expensive one.
When to start looking
Most lenders will let you secure a new rate around three to six months before your current deal ends.
Booking early does not lock you out of anything. In most cases, if rates fall before your new deal starts, you can switch to the better one. So an early booking works like a ceiling: you have a rate held for you, and you keep the upside if pricing improves.
Given three members of the Bank's Committee voted for a rise in July, having that ceiling in place costs nothing and removes a risk. Six months out is a sensible time to start.
Product transfer or full remortgage?
Two different routes, and the right one depends on your situation.
A product transfer is a new deal with your existing lender. It is quicker, involves less paperwork, usually no new valuation and often no legal work. If your circumstances have changed for the worse, or your property has fallen in value, it can also be the more achievable option because the affordability checks are typically lighter.
A full remortgage moves you to a new lender. More work, and it takes longer, but you are shopping the whole market rather than one lender's range, and that is often where the savings are. It is also the route if you want to change the loan itself, for example borrowing more or altering the term.
The mistake is assuming your existing lender's offer is competitive because it arrived first. Sometimes it genuinely is. It is worth knowing rather than assuming.
Things that will slow you down
If any of these apply, start earlier than you otherwise would:
- You are self-employed, and your latest accounts are not finalised
- Your income now includes bonus, commission or several sources
- You have taken on credit since the last application
- The property has changed, extended, or is unusual in construction
- You are separating, or names on the mortgage need to change
None of these stops you. They just take time, and time is the thing people run out of.
What to have ready
- Recent payslips, or accounts if you are self-employed
- Bank statements for the last few months
- Your current mortgage statement and the exact date your deal ends
- A note of any credit commitments and their monthly payments
- An idea of what the property is worth now, which affects the rate you qualify for
That last one matters more than people expect. If your property has gone up in value since you borrowed, your loan is now a smaller proportion of it, and that can move you into a better rate band without you doing anything at all.
The plain version
- Around 1.8 million fixed deals end this year
- Doing nothing means the SVR, which is usually the worst rate available
- Start looking three to six months out, and secure a rate as a ceiling
- Compare your lender's offer against the wider market rather than accepting it
- If anything about your income or property is complicated, start earlier
If your deal ends in the next year, get in touch and we will work out what you can move to and when to do it.
Fixed-rate expiry figures from UK Finance. The July vote from the Bank of England.