Fixed-rate deals are the most popular type of mortgage as the fixed interest rate means you know what you’ll be paying each month until the end of the period (two years, for example).
But once that period ends, you have choices. If you do nothing, your lender will move you onto its standard variable rate (SVR) which is usually much higher and could end up costing you a lot more. Instead, you might want to switch deals with your current lender - or remortgage with a new lender.
It’s important to start planning about six months ahead of when your fixed-rate mortgage deal is due to end, to ensure you can keep your payments as low as possible when the time comes.
The standard variable rate (SVR) is a type of backstop rate that a lender can change at any time – it’s variable – unlike a fixed rate. Because the rate can change, your monthly mortgage payments could go up or down.
For example, based on Habito mortgage sourcing data analysed in February 2026,
For example, if you owed £200,000 and had 25 years left on a repayment mortgage, the difference in the monthly payment could be over £416 based on those example rates. Actual costs will depend on your mortgage balance, term and interest rate.
Lenders set their SVR with the Bank of England base rate in mind - the SVR is influenced by the base rate rather than tracking it, and is typically well above it. Fixed rates are indirectly influenced by the base rate, in that lenders set them anticipating where rates will go during the period of the deal. The base rate could change a lot in that time yet the fixed rate stays the same.
Although SVRs are usually much higher than fixed rates, SVR deals do have a few benefits.
SVR mortgages typically don’t have an early repayment charge - this is a fee you typically pay to leave your mortgage before the fixed term ends or if you overpay beyond what your deal allows.
Many fixed-rate and discounted rate deals limit what you can overpay and if you go over that, you have to pay an early repayment charge. The overpaying limit is typically 10% of your remaining balance each year.
With SVRs, you can usually overpay by as much as you want, without any penalty.
But if you think you might want to overpay your mortgage, you might find cheaper deals than SVR mortgages that allow that.
You can find out more about SVR deals in our SVR mortgages guide, and there’s also a guide to fixed-rate mortgages.
When you’re about six months away from your fixed-rate deal ending, it’s smart to start thinking about what you’ll want to do when it happens. If you do nothing, your lender will put you on an SVR mortgage, which is likely to be the most expensive option.
Alternatively, you could switch to another mortgage from your existing lender (a product transfer) or remortgage with a new lender.
This could see you paying hundreds of pounds extra each month. But it might work for you if you’re about to move house, or you’ve nearly finished paying off your mortgage. That’s because you won’t have to go through credit checks and there’s typically no early repayment charge or exit fee.
This is usually quite straightforward and many people opt to go for another fixed-rate deal. Your lender knows who you are so there are typically fewer checks.
It’s worth bearing in mind, though, that while switching to another deal from the same lender might be faster - it can be done within a week - it’s not necessarily going to be the cheapest deal you could get if you checked the whole market.
You could save money by shopping around and looking at what’s available across the mortgage market, depending on the deals available and your circumstances.
Just bear in mind that this could take a bit longer and there will be more checks as you’ll have to go through the mortgage application process again. There will also likely be costs such as property valuation fees and legal fees.
If your finances have changed - for example, if you went freelance or lost your job - you might find it more difficult to remortgage with a new lender.
A mortgage broker such as Habito can help you figure out what your options are, and the likely costs. Habito compares mortgages from a wide range of UK lenders, though not every lender in the market. You can chat with a Habito mortgage expert for free, and if a fee ever applies in specialist cases it will always be explained before you proceed.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Habito is a mortgage broker, not a lender. We’re authorised and regulated by the Financial Conduct Authority. This content is intended for general guidance and is not a substitute for personalised mortgage advice.
If you plan to remortgage to a new deal, it’s a good idea to start looking around six months ahead of when your fixed-rate deal ends.
Mortgage offers usually last between three and six months, to allow for legal paperwork to be finalised, although this depends on the lender. Find out more in our guide to mortgage offers.
If you’re leaving a mortgage before the fixed deal is due to end, you could face some hefty charges for early repayment.
But if you leave after the deal has ended, and move to a new lender, you may still have to pay a mortgage exit fee (also called a redemption fee or discharge fee) which is an admin fee of usually £75-£300.
When you remortgage to another lender, there are some other fees, too.
When you remortgage with the same lender, you may have to pay:
The lender has already valued the property, so there’s no valuation fee. And you can typically do the remortgage without involving a lawyer.
Lenders vary in which fees they charge. There’s more on this in our guide to fees.
Figuring out your next step at the end of the fixed-term deal isn’t always straightforward. It can help to talk through your options with an expert. You can chat for free with a Habito expert.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Habito is a mortgage broker, not a lender. We’re authorised and regulated by the Financial Conduct Authority. This content is intended for general guidance and is not a substitute for personalised mortgage advice.
Yes, your lender can refuse to renew your mortgage, but it’s rare for this to happen. It could happen if your finances have changed dramatically - say, you’re no longer working, or your debts have mounted up. The lender might then think you can’t afford the repayments. Some lenders don’t do affordability and credit checks on homeowners who’ve kept up their repayments.
A lender might also refuse if you’ve missed payments and built up arrears. If your finances have changed significantly, it could be wise to speak with a broker about what could be available to you.
If you apply for a mortgage with a new lender, it will do a “hard” credit check on you, meaning that this will be recorded for other lenders to see on your credit record. This can cause a temporary dip in your credit score, but it should return to what it was within a few months.
If you remortgage with your existing lender, it’s unlikely to do a hard check.
Yes, once your fixed rate has ended, if you move to an SVR, you can usually pay the balance of your mortgage without an early repayment penalty.
There a few options if you need to move home before your fixed-rate deal ends. It will partly depend on whether the new place is more expensive or cheaper. You could bring your mortgage with you - called “porting” - or you could remortgage, which might entail an early repayment charge. We’ve explained the options in this guide to moving home when you have a mortgage.
In this article, we look at remortgaging in detail, from what it actually means and when is the best time to do it is, to how to compare remortgage rates and find the best deals available to you.
Habito specialises in helping you get the best mortgage or remortgage, all online, for free
