What Happens When Your Fixed-Rate Mortgage Ends? Your Options Explained

★ Key Takeaways

• When your fixed-rate mortgage ends, you automatically move to your lender's Standard Variable Rate (SVR) – currently averaging 7.27%
• On a £200,000 mortgage, the difference between SVR and a new fixed rate could be £383 per month – that's £4,596 a year
• You have three options: stay on SVR (rarely sensible), product transfer with your current lender, or remortgage to a new lender
• Start the process at least 6 months before your deal ends – most lenders let you lock in a rate that far in advance
• A mortgage broker can compare product transfers against the whole market to find you the best deal

If your fixed-rate mortgage is coming to an end, you might be wondering what happens next. You're not alone – an estimated 1.8 million mortgage deals are set to expire across the UK in 2026, and many homeowners are understandably anxious about what comes next.

The short answer? When your fixed rate ends, you'll be moved onto your lender's Standard Variable Rate (SVR) – and that almost certainly means a significant jump in your monthly payments. But the good news is that you have options, and if you act early enough, the transition can be smooth and even save you money.

In this guide, I'll explain exactly what happens when your fixed-rate deal expires, walk you through your three main options, and help you decide which route is right for your circumstances. If you want a broader overview of the remortgaging process in Scotland, I've covered that in a separate guide too.

When your fixed-rate period ends – whether it was a 2-year, 3-year, or 5-year deal – your lender will automatically move you onto their Standard Variable Rate (SVR). You don't need to do anything for this to happen; it's the default.

The problem? SVRs are typically much higher than fixed rates. As of early 2026, the average SVR across UK lenders sits at around 7.27%. Compare that to the current average 2-year fixed rate of 4.23% or a 5-year fix at 4.34%, and you can see why staying on SVR is rarely a good idea.

Let me put that into real numbers. On a £200,000 mortgage over 25 years:

That's a difference of roughly £383 per month – or £4,596 per year – just for doing nothing. Understanding how fixed and variable rates work is essential for making the right decision here.

Let's get this one out of the way first. For the vast majority of homeowners, staying on the SVR is the worst option. You're paying significantly more interest for no real benefit.

The only scenarios where it might briefly make sense:

• You're planning to sell your property within a few months and don't want to lock into a new deal with early repayment charges
• You need maximum flexibility for a very short period – SVRs have no early repayment charges
• You're in a temporary situation (e.g., between jobs) and can't pass affordability checks for a new deal right now

Even in these cases, it should only ever be a short-term measure. Every month on SVR is money you could be saving.

A product transfer means staying with your current lender but switching to a new deal they offer. It's the simplest route, and for many homeowners, it's an excellent option.

Advantages of a Product Transfer

• No affordability assessment – your lender already knows your payment history, so there's usually no income verification or stress test
• No solicitor or legal fees – everything stays with the same lender
• No valuation needed – the lender already has your property on file
• Quick process – often completed in a matter of days
• Ideal if your circumstances have changed – if you've recently become self-employed or changed jobs, a product transfer avoids the scrutiny of a full application

Disadvantages of a Product Transfer

The main downside is that you're limited to your current lender's range of products. They may not offer the best rates on the market, and you won't be able to release equity or change your mortgage term without a full remortgage.

That said, some lenders offer very competitive retention deals to keep your business – so it's always worth checking what they can offer alongside what's available elsewhere.

Remortgaging to a new lender gives you access to the entire mortgage market, not just one lender's products. This is typically where you'll find the very best rates and deals.

Advantages of Remortgaging

• Access to the whole market – compare hundreds of deals across dozens of lenders
• Potentially better rates – new lenders compete for your business with attractive introductory offers
• Release equity – borrow additional funds against your property's value for home improvements, debt consolidation, or other purposes
• Change your mortgage term – extend to reduce payments or shorten to pay off faster
• Many lenders cover costs – free valuations and legal work are common with remortgage deals

What's Involved in a Remortgage?

Unlike a product transfer, remortgaging to a new lender requires a full mortgage application. This means affordability checks, a property valuation, and legal work to transfer the mortgage from one lender to another. The process typically takes 4-8 weeks, which is why starting early is so important.

Your credit file will be reviewed as part of the application, so it's worth checking yours in advance to make sure there are no surprises.

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The golden rule: start at least 6 months before your current deal ends. Here's why that matters:

• Most lenders allow you to lock in a rate up to 6 months ahead of your switch date
• If rates drop before your deal completes, you can often reapply for a better rate with the same lender
• It gives you time to compare product transfers against full remortgage offers
• If there are any issues with your application, you'll have time to resolve them before you hit the SVR

For a deeper dive into timing your remortgage perfectly, check out my guide on knowing when to remortgage.

The honest answer is that you should always compare both options. A good mortgage broker will check what your current lender is offering via a product transfer and compare it against the best deals on the wider market. Sometimes the product transfer wins; sometimes a remortgage saves you more. Without comparing, you'll never know.

Will my lender contact me before my deal ends?

Most lenders will send you a letter or email around 3-4 months before your fixed rate expires, letting you know your deal is ending and offering product transfer options. However, don't wait for this – by then, you've already lost valuable time. Start exploring your options 6 months out to ensure a seamless transition.

Can I switch to a new deal before my fixed rate ends?

Yes, but be aware of early repayment charges (ERCs). Most fixed-rate mortgages have ERCs during the fixed period, typically 1-5% of the outstanding balance. However, you can apply for a new deal and have it ready to start the moment your current fix expires. That's the beauty of the 6-month head start – you secure your new rate now, but it doesn't start until your current deal ends.

What if I've already fallen onto the SVR?

Don't panic – it's not too late. You can still do a product transfer or remortgage at any time while on the SVR. There are no penalties for leaving the SVR, so the only thing you lose is money for each month you stay on it. Get in touch with a broker and start the process as soon as possible.

Should I fix for 2 years or 5 years?

This depends on your circumstances and outlook on interest rates. A 2-year fix gives you flexibility to review sooner but means more frequent remortgaging. A 5-year fix offers longer-term certainty and stability. Currently, the difference between 2-year and 5-year rates is relatively small (4.23% vs 4.34%), making 5-year fixes particularly attractive for those who value peace of mind. I discuss the pros and cons in detail in my guide to fixed vs variable rates.

The worst thing you can do when your fixed rate ends is nothing. Whether it's a product transfer or a full remortgage, taking action could save you hundreds of pounds every single month.

At McGhie Mortgages, I help homeowners across Edinburgh, the Lothians, and all of Scotland navigate this transition smoothly. I'll compare your current lender's product transfer rates against the whole market, handle all the paperwork, and make sure you get the best possible deal for your circumstances.

Fixed rate ending soon? Book a free, no-obligation consultation and let's make sure you don't pay a penny more than you need to.