What You Need to Know Before Choosing Your Next Step

Your Mortgage Deal is Ending

If your fixed-rate mortgage is coming to an end, you’re not alone. Thousands of homeowners across the UK are in the same position, looking at their next step and wondering whether payments are about to go up, down, or sideways.

The good news is that the mortgage market has started to settle after a turbulent few years. That means for some borrowers, the monthly cost of their mortgage could even fall when they move onto a new deal. For others, the priority will be avoiding a jump in payments by steering clear of their lender’s Standard Variable Rate (SVR).

So, what are your options, and how do you know which one is right for you?

What happens when your deal ends

When a fixed-rate mortgage finishes, you’re usually moved onto your lender’s SVR. This rate is almost always higher than the one you’ve been paying, and it can mean an immediate rise in monthly costs.

That’s why acting early is so important. Most lenders will let you secure a new deal up to six months in advance, giving you time to plan rather than scramble. And crucially, acting early doesn’t mean rushing into the wrong choice, it’s about understanding your options before you’re forced onto a higher rate.

Option 1: Product transfer

A product transfer is where you stay with your current lender but switch onto a different deal. It’s usually straightforward, with no legal work, fewer checks, and faster turnaround.

The positives:

• Simpler and quicker than a remortgage

• Often no need for a solicitor or valuation

• Ideal if you’re happy with your current lender and want minimal paperwork

The limitations:

• You may not get the most competitive rate on the wider market

• Less flexibility if you want to change your loan amount or term

A product transfer works well for people who value convenience and are happy with their lender. But it’s not always the cheapest option.

Option 2: Remortgage

A remortgage means moving your mortgage to a new lender. It takes a little more time and involves some legal work, but it opens up the whole market of deals.

The positives:

• Access to potentially lower interest rates

• Opportunity to adjust your loan term or borrow more (for home improvements, consolidating debt, or other needs)

• More choice and flexibility

The limitations:

• The process can be slower

• May involve extra costs like valuation or arrangement fees

• More paperwork compared to a product transfer

Remortgaging is often the right choice if you want to make changes or if your current lender’s deals aren’t competitive.

Why advice matters more than ever

Deciding between a product transfer and a remortgage isn’t just about rates, it’s about your whole financial picture.

Your income may have changed since you last fixed, your property value may have shifted, or you might have new goals like reducing your mortgage term or releasing equity. An adviser can look at all of these factors and guide you through the pros and cons of each option.

I’ll also help you avoid the pitfalls that don’t make it into the headlines: early repayment charges, arrangement fees, or “headline” rates that aren’t actually the best fit once the small print is factored in.

Making the most of lower payments

If you do find yourself with a lower monthly payment on your next deal, think carefully about how to use that extra breathing space. Some borrowers choose to increase overpayments and reduce the term of their mortgage. Others use the saving to boost emergency funds or pensions. Whatever you choose, treating the change as an opportunity rather than just a windfall can make a real difference in the long run.

The takeaway

When your mortgage deal comes to an end, you’ve got choices, and the right one depends on your circumstances, not just market chatter.

• Product transfers offer speed and simplicity.

• Remortgages open the door to wider choice and potential savings.

• Acting early gives you more control and avoids a costly slide onto the SVR.

Most importantly, you don’t have to make the decision alone. Speaking to an adviser means you get tailored advice based on your situation and goals, not a one-size-fits-all answer. Please get in touch.

Barry, The Mortgage NetworkIndependent Mortgage Adviser, helping you make confident decisions about your home and your future.