Mortgage Deal Ending? Your 12-Month Countdown

A mortgage deal ending is one of those things that feels a long way off right up until it is three weeks away and you are scrambling. It is also one of the few financial deadlines where doing nothing has a guaranteed cost, because if you let it lapse you land on your lender’s standard variable rate, currently averaging well above what you would pay on a new fix.

So here is a simple countdown. Twelve months, four checkpoints, and no scrambling.

12 Months Out: Find Your Date and Write It Down

Sounds obvious. Most people cannot tell you the month their deal ends, let alone the day.

Check your original mortgage offer or log into your lender’s app. Note two dates: when your fixed or discounted period ends, and when any early repayment charge stops applying. They are often the same but not always, and the gap between them can be worth money.

Then set a reminder for six months before. That is the moment things become actionable.

While you are at it, get a rough idea of your property’s value. Your loan-to-value drives your rate more than almost anything else, and if you have been paying down capital for a few years you may have crossed into a better band without noticing.

6 Months Out: Start Looking

This is the key checkpoint. Most lenders let you secure a new rate up to six months before your current one ends, and if a better rate appears before you complete, it can usually be swapped.

That means starting now costs you nothing and protects you against rates moving the wrong way. There is no scenario where waiting is the safer option.

With a mortgage deal ending in six months, three things are worth doing:

Get your lender’s renewal offer. They will usually present one in your app. It is the easy option and sometimes the right one.

Compare it against the wider market. Your lender is competing against the assumption that you will not shop around. Sometimes their offer wins, sometimes it does not. Our guide to product transfers versus remortgaging explains when each route makes sense.

Decide how long you want to fix for. Two years, five years or a tracker are different answers to different questions, and it depends more on your own plans than on rate forecasts. Our post on choosing between a two and five year fix walks through it.

3 Months Out: Get It Arranged

If you have not acted by now, this is the point where a full remortgage to a new lender starts becoming tight. Remortgages typically take four to eight weeks because they involve a valuation and legal work.

A product transfer with your existing lender is much faster and can often be done in a day or two, so it remains available even late on. But you want that to be a choice, not the only option left.

Things worth checking at this stage:

• Has anything changed in your circumstances? A new job, a new baby, becoming self-employed, or taking on other borrowing all affect a full remortgage application, though usually not a product transfer.
• Do you want to change the term, borrow more, or make overpayments? These are easier to arrange now than mid-deal.
• Is your credit file clean? Free to check, and worth doing before an application rather than after. Our guide to checking your credit file covers it.

1 Month Out: Confirm and Diarise

Make sure the new rate is in place and you know exactly which day it starts. Check your first payment date and amount so nothing surprises you.

Then set a reminder for six months before the new deal ends, and you have made this whole thing a routine rather than a panic.

What Happens If You Miss It

You move onto the standard variable rate. It is not a penalty and nothing dramatic happens, but average SVRs have been sitting far above new fixed rates, and the SVR can change whenever your lender decides.

The good news is that you are not stuck. You can move off an SVR at any time, and there are usually no early repayment charges. So if your mortgage deal ending has already passed you by, the fix is to act now rather than to wait for something better. Our post on why remortgaging late costs you sets out the arithmetic.

What About Waiting for Rates To Fall?

The Bank of England has held the base rate at 3.75%, with the next decision due in September. Forecasts this year have been wrong in both directions, which is a reasonable argument against building a plan around any of them. You can check the current position on the Bank of England’s own page.

The practical answer is that securing a rate early and reviewing it before completion gives you protection either way. You are not locked in until you complete, so early action costs you nothing and removes the downside.

Not Sure When Yours Ends?

If you genuinely do not know, that is worth five minutes of your time today. Dig out the paperwork or check the app.

And if it is ending in the next six months, send us your lender’s renewal offer and we will benchmark it against the whole market. If their deal is the best one, we will tell you that too.

Frequently Asked Questions

How early can I remortgage before my deal ends?

Most lenders let you secure a new rate up to six months in advance, and many offers can be swapped if a better rate appears before completion.

What happens when my mortgage deal ends?

You move onto your lender’s standard variable rate, which is typically much higher than a new fixed deal and can change at any time.

Can I leave a standard variable rate at any time?

Usually yes. SVRs generally carry no early repayment charges, so if your mortgage deal ending has already passed, you can move straight away.

Is a product transfer quicker than a remortgage?

Considerably. A product transfer can often complete in a day or two, while a remortgage typically takes four to eight weeks.

Should I wait for interest rates to fall before remortgaging?

Securing a rate early and reviewing it before completion protects you either way, since you are not committed until completion. Waiting while your deal lapses is the expensive option.

Does remortgaging affect my credit score?

A full remortgage to a new lender involves a hard credit search. A straightforward product transfer with your existing lender generally does not.