When your fixed rate ends, your mortgage automatically moves to your lender's Standard Variable Rate (SVR) — typically 7–8%+ in mid-2025 — unless you act first. On a £250,000 mortgage this switch costs approximately £430–£560 extra per month versus a competitive new fixed deal. You have three options: do nothing (SVR — almost always wrong), take a product transfer with your current lender (quick but not always the best rate), or remortgage to a new lender (more work, but potentially cheaper). Start this process six months before your deal ends.
Most lenders do not send a warning when your fixed rate is about to expire. Your mortgage simply reverts to SVR — silently — and your direct debit jumps. On a £300,000 mortgage, moving from a 4.5% fixed rate to SVR at 7.5% costs an additional £561/month or £6,732/year. This happens automatically with no action required on your part. It is one of the most avoidable financial losses in UK personal finance.
Hundreds of thousands of UK homeowners come off fixed rate deals every year, and a significant proportion end up on SVR — not by choice, but through inaction, confusion, or simply not realising the deadline was approaching. The fixed rate expiry date is one of the most important dates in your financial calendar, and it requires action several months before it arrives, not after.
This guide explains exactly what happens, what it costs if you do nothing, and what your options are — with real numbers so you can understand what is actually at stake.
What actually happens when your fixed rate ends
A fixed rate mortgage is a deal product that sits on top of your underlying mortgage. The deal has an expiry date — two years, five years, or whatever term you originally chose. When that date arrives, the deal expires and the underlying mortgage simply continues at whatever rate the lender has set as its default, which is the Standard Variable Rate.
Nothing dramatic happens on the day itself. There is no letter saying "your mortgage has changed." Many borrowers only notice several weeks later when their bank statement shows a higher direct debit. By that point they may already be several hundred pounds down. Lenders are not legally required to remind you proactively, though many do send a letter or email in the months before expiry — often pointing you towards their own products rather than the wider market.
What is a Standard Variable Rate?
An SVR is the lender's own default mortgage rate, set at its complete discretion and not tied to any external benchmark. Unlike a tracker mortgage which follows the Bank of England base rate, an SVR can move in any direction at any time — lenders can raise their SVR without the base rate moving at all. SVRs in mid-2025 at major UK lenders sit between approximately 7.00% and 8.24%. The Bank of England base rate is 4.75%. The margin between base rate and SVR — approximately 2.25–3.5% — represents the lender's premium for providing this default product to borrowers who have not made an active choice.
The SVR cost in real money
| Balance | SVR (7.5%) | Competitive fix (4.5%) | Monthly difference | Annual cost of staying on SVR |
|---|---|---|---|---|
| £150,000 | £1,098/mo | £833/mo | +£265/mo | +£3,180/yr |
| £200,000 | £1,464/mo | £1,111/mo | +£353/mo | +£4,236/yr |
| £250,000 | £1,830/mo | £1,389/mo | +£441/mo | +£5,292/yr |
| £300,000 | £2,196/mo | £1,667/mo | +£529/mo | +£6,348/yr |
| £400,000 | £2,928/mo | £2,222/mo | +£706/mo | +£8,472/yr |
SVR at 7.5% vs competitive 2-year fixed at 4.5%, 25-year repayment basis. SVR rates vary by lender — check your specific lender's current SVR. A 1% difference in SVR assumptions changes monthly costs by approximately £83 per £100,000 balance.
Your three options when the fixed rate ends
Product transfer vs remortgage — how to decide
For most borrowers the right process is: check your current lender's product transfer rates first, then compare them against the open market via a broker. This takes less than 30 minutes and can save thousands.
When a product transfer is the right call
- Your income has reduced since your last application — a full remortgage requires a new affordability assessment at current income. If you earn less than when you originally borrowed, a product transfer avoids this scrutiny as the lender simply offers you a new rate without reassessing affordability.
- Your property's value has fallen — a remortgage requires a new valuation. If your property is worth less than when you last remortgaged, a new valuation could put you in a higher LTV band and push your rate up. A product transfer typically uses the original or last recorded valuation.
- You need to complete quickly — product transfers typically complete in days. A full remortgage takes four to eight weeks. If your fixed rate is expiring imminently and you have not acted in time, a product transfer can bridge the gap while a remortgage completes in the background.
- Your lender's rates are genuinely competitive — sometimes the current lender offers retention rates that match or beat the open market. Always check before assuming the grass is greener elsewhere.
When remortgaging to a new lender wins
- Open market rate is more than 0.2% cheaper — at 0.2% on a £250,000 balance the annual saving is approximately £500. After accounting for legal costs (often covered by the new lender for remortgages), this saving typically pays for itself within the first year of the new deal.
- You want to change your loan amount or term — releasing equity, extending the term, or significantly changing the structure requires a full remortgage rather than a product transfer.
- Your credit profile has improved — if you had adverse credit when you took your current mortgage, your credit profile may have improved significantly since. A new lender's assessment may access better rates now unavailable under your existing lender relationship.
- Your property has increased significantly in value — higher value means lower LTV, which unlocks better rate bands. A new valuation captures this benefit; a product transfer may use an older, lower value.
Your action timeline — what to do and when
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6 months before expiryFind your expiry date and begin shoppingCheck your mortgage statement or log in to your lender's portal to confirm the exact date your fixed rate ends. Most lenders allow you to lock in a new rate up to six months in advance. Instruct a whole-of-market broker — this costs you nothing and typically results in a better rate than direct application.
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5–6 months before expiryCompare product transfer rates vs open marketLog in to your current lender's online platform and note their product transfer rates. Send these to your broker along with your current balance, remaining term, and property value estimate. Your broker will identify whether switching lenders adds value or whether the product transfer is competitive.
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4–5 months before expiryApply for the chosen product — lock in a rate nowApplying six months in advance means you lock in today's rate as a reservation. Crucially, if rates improve between now and your deal start date, you can typically apply again on better terms with no penalty — most lenders allow rate changes during the reservation period. You lose nothing by applying early.
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3 months before expiryConfirm the application is progressingFor a full remortgage, check that the valuation and legal work are underway. A remortgage with a new lender typically takes four to eight weeks from application to completion. Three months is sufficient time for most straightforward cases, but if the application stalls, you still have time to complete before SVR kicks in.
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1 month before expiryConfirm completion date aligns with deal endYour broker or solicitor should be able to confirm when the new deal will complete. The completion date should fall on or before your current fixed rate expiry. If there is any doubt, escalate immediately — a brief period on SVR is not catastrophic, but it should be minimised.
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Deal end dateNew deal starts — confirm new monthly paymentYour first payment under the new deal typically falls one month after completion. Confirm the new direct debit amount matches your expectation. Check the new mortgage statement once it arrives to ensure the rate, balance, and term are all as agreed.
Three real scenarios — what the right action is worth
Sarah has a £240,000 mortgage balance on a 2-year fixed rate that expires in September. She sets a reminder in March — six months early — and instructs a broker in April. Her current lender's product transfer rate is 4.65% on a new 2-year fix. The broker finds a competing lender offering 4.22%. Legal fees are covered by the new lender.
| Product transfer rate (current lender) | 4.65% |
| Best remortgage rate (open market) | 4.22% |
| Monthly payment difference | £56/month |
| Annual saving from switching | £672/year |
| Saving over 2-year fix | £1,344 |
| Saving vs staying on SVR (7.5%) | £450/month = £5,400/year |
Marcus has a £185,000 balance. His income has reduced since he last remortgaged — he went part-time 18 months ago and now earns £38,000 down from £52,000. His current lender's product transfer rate is 4.55%. His broker advises that a full remortgage would require a new affordability assessment and at his current income the maximum loan is approximately £171,000 — below his outstanding balance. The product transfer is the only viable option.
| Current balance | £185,000 |
| Maximum loan at new lender (4.5× £38k) | £171,000 |
| Shortfall if remortgaging | £14,000 — not viable |
| Product transfer rate (same lender) | 4.55% |
| Monthly payment | £1,023/month |
| SVR cost comparison | £1,352/month — £329/month more |
The product transfer at 4.55% saves £329/month versus SVR even though it is 0.3% above what the open market might offer a borrower with a higher income. For Marcus, the product transfer is the right and only realistic option. This is a common scenario for borrowers whose circumstances have changed since their original mortgage.
David's 5-year fixed rate expired in January 2025. He received a letter from his lender in October 2024 and meant to act on it. He did not. His £280,000 mortgage quietly moved to the lender's SVR of 7.99%. He noticed in April — three months and one week after the switch — when a friend mentioned his mortgage renewal.
| SVR payment (7.99%, 20 years remaining) | £2,380/month |
| Competitive fixed rate equivalent (4.4%) | £1,785/month |
| Overpayment per month on SVR | £595/month |
| Months on SVR before he acted | 3.5 months |
| Total overpayment (avoidable cost) | £2,082.50 |
| Annual cost if he had stayed on SVR | £7,140/year |
David overpaid £2,082 in just 3.5 months. Had he not noticed for six months it would have been £3,570. A full year on SVR would have cost him £7,140 extra. He eventually remortgaged at 4.4% for a 2-year fix — a straightforward application that completed in four weeks. The entire avoidable overpayment was caused by not acting when the letter arrived.
Leaving a fixed rate early — when the ERC might be worth paying
If your fixed rate does not expire for another year or two but current market rates are significantly lower than what you are paying, it may be worth calculating whether paying the early repayment charge and remortgaging now saves money overall.
| Year of 5-year fix | Typical ERC | Cost on £250,000 balance |
|---|---|---|
| Year 1 | 5% | £12,500 |
| Year 2 | 4% | £10,000 |
| Year 3 | 3% | £7,500 |
| Year 4 | 2% | £5,000 |
| Year 5 | 1% | £2,500 |
ERC structures vary by lender and product. Always check your mortgage offer document for the exact ERC schedule.
The breakeven calculation: if leaving early saves £300/month and the ERC is £5,000 (Year 4 of a 5-year fix on £250,000), the breakeven point is £5,000 ÷ £300 = approximately 17 months. If more than 17 months of the new deal remain after breaking out, paying the ERC is financially worthwhile. In Year 5 with only 12 months remaining, a £2,500 ERC recovered at £300/month takes just over eight months — and if the remaining fix period is only 12 months, it may not fully pay back. The maths is highly specific to individual circumstances — use our mortgage calculator to model different rate scenarios.
Frequently asked questions
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What happens when your fixed rate mortgage ends?Your mortgage automatically moves to your lender's Standard Variable Rate (SVR) — typically 7–8%+ in mid-2025 — unless you have already arranged a new deal. No action is required for this to happen; it is the default. Most lenders send a letter or email in the months before the expiry but are not obligated to. The switch can cost £400–£700/month extra on a typical mortgage. Act at least six months before your deal ends to avoid any time on SVR.
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How long before my fixed rate ends should I remortgage?Start the process at least six months before your deal ends. Most lenders allow you to lock in a new rate up to six months in advance with the deal completing when your current fix expires. This costs nothing and means you face no risk of landing on SVR. If rates improve before completion, you can usually apply again at no cost.
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Should I do a product transfer or remortgage?Check both. A product transfer is faster, needs no new affordability assessment, and is the only option if your income has reduced since your original mortgage. A remortgage to a new lender accesses the full market and typically delivers better rates. If the open market rate is more than 0.2% cheaper than your lender's product transfer, remortgaging usually pays. A whole-of-market broker can compare both options in minutes.
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Can I leave a fixed rate mortgage early?Yes, but early repayment charges (ERCs) typically apply — usually 1–5% of the outstanding balance depending on which year of the fix you are in. Calculate whether the monthly saving from accessing a lower rate outweighs the ERC over the remaining deal period. In Year 4 or 5 of a 5-year fix, ERCs are smaller and may be worth paying to escape a higher rate. In Year 1 or 2 they are rarely worth it unless the rate differential is very large.
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What is the SVR and how much is it?The Standard Variable Rate is the lender's default rate applied when a deal expires. It is set at the lender's discretion — not linked to the Bank of England base rate — and can change at any time. Major UK lender SVRs in mid-2025 sit between 7.00% and 8.24%. This is 2.5–3.7% above typical competitive fixed rates. On a £250,000 mortgage, this premium costs approximately £440–£560/month extra compared to a competitive deal.
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