I’m on a fixed rate what should I do when it comes to an end?

With thousands of mortgage borrowers coming to the end of their fixed rate mortgages and in most cases their mortgage payments are set to rise we look to explain what a fixed rate mortgage is, what will happen when a fixed rate deal comes to an end and what actions you can take to avoid these higher costs.

A fixed rate mortgage is a deal where your payments are fixed for a set period of time, normally either 2,3,5 or 10 years. During this period, no matter what happens to the Bank of England base rate your mortgage payments will not move. If gives you stability of knowing what your mortgage payments are going to be for that set period.

When you come to the end of your fixed rate, your mortgage will revert to the lenders Standard Variable Rate. This rate is normally higher than your initial fixed rate and therefore your payments are likely to go up if you do nothing and let your mortgage move on to the variable rate.

You have got 3 options to consider when your fixed rate finishes:
• You could do nothing and pay the lenders higher Standard Variable Rate
• You could do a product transfer and take out a new deal with your existing lender
• You could remortgage and take out a new deal with a new lender

If you are looking to take out a new deal before your fixed rate comes to an end then you should start looking in to this 3 to 4 months before your current deal ends.
By speaking to a mortgage adviser, they can search the whole of the market for you, including your existing lender and offer you advice and recommendation to ensure you are getting the most competitive mortgage deal available for your circumstances.