Every fixed mortgage deal eventually comes to an end — and what happens next is entirely up to you, even though many borrowers end up doing nothing and paying the price for it. Understanding this moment in advance means you can act before it costs you money.
The default: falling onto the Standard Variable Rate
If you don't arrange a new deal before your current one expires, your lender will automatically move you onto its Standard Variable Rate (SVR) — the lender's own default interest rate, which can move up or down at the lender's discretion and is typically significantly higher than fixed or tracker deals available on the open market. There's no penalty for being on the SVR, and you can leave it at any time without an Early Repayment Charge, but it is rarely the cheapest option.
Why lenders don't automatically offer you a good deal
Lenders make more from customers who don't switch, so the SVR transition happens automatically and quietly — you may receive a letter or email notification, but it's ultimately your responsibility to act. This is sometimes referred to as the "loyalty penalty" across financial services generally, and mortgages are one of the clearest examples of it.
Your options as your fixed deal approaches its end
- Product transfer — move to a new deal with your existing lender, usually with minimal paperwork.
- Remortgage to a new lender — a full application to switch providers, potentially accessing better rates market-wide.
- Do nothing and move to the SVR — sometimes a deliberate short-term choice (for example, if you plan to sell soon, or want flexibility with no ERC), but rarely sensible longer-term.
- Overpay while on the SVR temporarily — if you're between decisions, overpaying can still reduce your balance, though the SVR interest rate is working against you the whole time.
When to start planning
Most brokers recommend beginning the process 4–6 months before your deal ends, since many lenders let you secure a new rate up to 6 months in advance and some allow switching to an even better rate later if one appears before completion, at no extra cost. Waiting until your deal has already ended means unnecessary weeks or months on the SVR while a new mortgage is arranged.
How much could staying on the SVR cost you?
The gap between a typical fixed rate and a lender's SVR can be several percentage points. On a £200,000 mortgage balance, even a 2 percentage point difference can add hundreds of pounds to your monthly payment — money that, over just a few months of inaction, adds up to a meaningful sum with nothing extra to show for it.
What if your circumstances have changed?
If your income, employment status, credit history or property value has changed since you took out your current deal, it's worth checking your options with a broker rather than assuming you'll get the same terms as before. Sometimes a product transfer with your existing lender is the safer route if a new lender might decline you or offer less favourable terms following a full reassessment.
For related reading, see our guides on How to Switch Mortgage Lenders for a Lower Rate and When Should You Lock In a New Fixed-Rate Mortgage?.
To run your own numbers, try our Remortgage Cost & Savings Calculator.
The bottom line
Your fixed deal ending is not a crisis — but it is a deadline. Mark the end date in your calendar as soon as you take out a mortgage, start comparing options 4–6 months ahead, and avoid drifting onto your lender's SVR by default. A few hours of comparison shopping around this date is consistently one of the highest-value financial tasks a homeowner can do.