I’m Charles Calvert, a mortgage broker at Easy Mortgages. This is general information, not personal advice. Always check the figures against your own situation before you decide anything.
What happens when your fixed mortgage rate ends? In most cases your lender moves you onto its standard variable rate (SVR) or a similar follow-on rate. That rate is usually higher than the deals on offer to new and existing customers, so the monthly payment can jump — sometimes sharply.
Through autumn 2023, many Hampshire homeowners who fixed at low rates in 2020 or 2021 are hitting that cliff. If a letter from your lender has landed with a new deal on it, read on before you sign anything.
The SVR moment
Your fix is a temporary product. When it expires, the contract typically rolls onto the lender’s SVR unless you have already switched to a new deal. SVRs can change when the lender chooses, so the payment is less predictable than a fresh fix.
The good news: you do not have to wait until the last day. Many lenders let you secure a new rate three to six months before the fix ends. That window is when most of my remortgage conversations start across Fareham, Gosport, Southampton and Winchester.
Product transfer vs remortgage
A product transfer is a new deal with your current lender. It is often quicker, with less paperwork, and there is no fee from me for arranging one. A remortgage moves you to a different lender so we can search the wider market. My remortgage fee is £299, payable only once you receive the full mortgage offer.
Which is better depends on total cost over the deal, fees, cashback, early repayment charges on any new product, and whether you need to borrow more or change the term. I compare both rather than pushing one route.
Why starting early matters in this rate environment
When the gap between an expiring low fix and today’s follow-on rates is wide, every month on SVR can hurt. Starting three to six months out gives time for valuations, underwriting and any credit tidy-ups. If your circumstances have changed — new job, self-employment, a credit blip — we may need the longer runway of a remortgage rather than a light-touch product transfer.
Lenders’ pricing also moves week to week. Booking a review early means we can reserve a rate when one looks sensible and still switch within the same lender’s range if a better option appears before you complete, subject to criteria.
What to have ready
- Your current lender statement and fix end date.
- Approximate balance and remaining term.
- Recent payslips or accounts if we might remortgage.
- A note of any plans to borrow more for improvements.
- Details of any early repayment charge still left on the deal.
Do nothing is still a choice — usually an expensive one
Some people stay on SVR for a month or two while they decide. A short bridge can be fine. Months of SVR rarely are, especially while follow-on rates remain elevated. Treat your lender’s retention letter as one option on the table, not the only option.
If your fix ends within the next six months and you want a clear comparison of product transfer versus remortgage, send me the end date and current balance.
How I usually compare the options
I look at the total cost over the new deal length: rate, arrangement fee, valuation, legal costs, cashback, and any broker fee. I also look at early repayment charges on the new product, overpayment flexibility, and whether you might move home again soon. A shiny retention rate from your current lender can still lose to a slightly higher rival deal that includes valuation and legal fees with cashback — or the reverse. The only way to know is to put your balance through both routes.
If your income is complex — contractors, limited company directors, recent maternity returners — start earlier than friends with simple PAYE. Underwriting questions take calendar time you do not have on SVR.
Hampshire timing tip
School-term moves and Christmas postal slowdowns both eat weeks. If your fix ends in January or February, treat the preceding October and November as your decision window, not the week the SVR letter arrives.
If you would like to talk this through for your own numbers, you can get in touch here or email contact@easy-mortgages.co.uk. I am based in Fareham and help clients across Hampshire.