Many homeowners are approaching a crucial point with their mortgage… and for some, the change could come as a shock if they’re not prepared.
A large number of borrowers who secured five-year fixed rate mortgages during 2021 are now reaching the end of those deals. At the time, interest rates were historically low, with many homeowners benefiting from rates below 2%. Fast forward to today and while rates have eased from their recent highs, they remain significantly higher than they were five years ago.
What does this mean for homeowners?
For those coming to the end of a fixed rate, moving onto a new deal could mean noticeably higher monthly payments. In some cases, this could add thousands of pounds a year to the cost of a mortgage… particularly if no action is taken and the loan moves onto a lender’s standard variable rate (SVR).
With a high volume of fixed-rate deals ending over the coming months, it’s more important than ever for homeowners to review their options early.
Why acting early can make a real difference
Many lenders allow borrowers to secure a new mortgage deal up to six months before their current rate ends. This gives you the opportunity to:
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Lock into a competitive rate ahead of time
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Protect yourself if rates rise again
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Avoid the risk of moving onto a higher standard variable rate
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Plan ahead with clarity and confidence
Even small differences in interest rates can have a big impact over time, so having the right deal in place can make a meaningful difference to your overall costs.
It’s not just about the rate
While headline rates are important, they’re only part of the picture. Fees, incentives, flexibility and the total cost over the term all need to be considered. What looks like the cheapest rate isn’t always the best option once everything is taken into account.
That’s where tailored advice really matters.
How CMS can help
At CMS, we help homeowners review their mortgage well before their current deal ends. We compare options across a wide range of lenders, explain the choices clearly and help you secure a deal that suits your circumstances… not just today, but for the years ahead.
If your fixed rate is ending in the next six to twelve months, now is the ideal time to start the conversation.
Thinking ahead could save you money
Being proactive puts you in control. Starting early gives you more options, more flexibility, and peace of mind that you’re not leaving things to chance.
If you’d like to review your mortgage or understand what your next steps should be, our team is here to help.