When your fixed rate ends, acting at the right time can save you thousands.
Sidcup is a well-established suburban area straddling the London boroughs of Bexley and Bromley, with DA14 and DA15 postcodes covering a mix of 1930s semis, post-war housing, and modern developments. It has long attracted buyers seeking good value within commuting distance of central London, and as a result there is a significant population of homeowners who took out mortgages during the past decade and are now approaching the end of their initial fixed-rate deals.
If your fixed rate is coming to an end, or has already ended, this guide explains what happens next, when to start looking, and how to get the most competitive deal available to you.
When a fixed-rate mortgage deal expires, your lender will automatically move you onto their Standard Variable Rate (SVR). The SVR is set at the lender’s discretion and is not directly linked to the Bank of England base rate in the same disciplined way that tracker mortgages are. In practice, the SVR is typically substantially higher than the rates available on new fixed or tracker deals in the market at any given time.
This means that a homeowner who does nothing when their two or five-year fix ends will almost certainly see their monthly payments increase, sometimes significantly, from the first day of the following month. The SVR can also change without much notice and without the protections that come with a fixed-rate term.
The message from this is straightforward: sitting on an SVR is almost always the more expensive option. Taking action before or at the point your deal ends is almost always in your financial interest, subject to your individual circumstances.
The optimal time to start the remortgage process is around six months before your current deal ends. This is not because the process takes six months, it does not. The reason to start early is that most lenders will allow you to secure a new deal in advance, with the new rate locking in at the point your current deal expires. This means you can secure a rate today while rates are at a level you find acceptable, without having to rush a decision when your deal actually ends.
Starting early also gives you time to compare the full market properly, gather the documents you will need, and handle any complications that arise without the pressure of an imminent switch to SVR. If rates fall between the time you lock in and the time your deal ends, a good broker will monitor the market and advise whether switching to a better deal makes sense, subject to any early repayment charges that may apply in the interim period.
If you want to leave your current deal before it expires, for example, because you want to remortgage early to secure a better rate or raise capital, you may face an early repayment charge (ERC). ERCs are typically expressed as a percentage of the outstanding loan balance and reduce over time. A two-year fixed deal might carry an ERC of 2% in year one and 1% in year two; a five-year deal might start at 5% and decrease annually.
Whether it makes financial sense to pay an ERC depends on the size of the charge versus the savings available from switching to a better rate. A broker can run this calculation for you and give you a clear comparison. In many cases it does not make sense to pay an ERC to leave a deal early; in some cases it does.
When your deal ends, you have two main options: take a product transfer (staying with your current lender on a new deal) or switch to a new lender entirely. Both are forms of remortgaging, but they have important differences.
A product transfer is typically quicker and involves less paperwork. Your lender already holds your information and has an existing legal charge over the property, so there is no need for a new valuation or full underwriting in most cases. This can make product transfers attractive if speed is a priority or if your circumstances have changed in ways that might make a full new application more complex.
However, your current lender is unlikely to offer the most competitive rate in the market. A whole-of-market broker searches across all lenders, including those not available on the high street or via comparison websites, and can identify whether a switch to a new lender would yield a meaningfully better rate. Even a small reduction in interest rate compounds into a significant saving over a two or five-year deal on a typical mortgage balance.
The right choice between product transfer and switching lender depends on your circumstances, the rates available, and the costs involved. A broker can compare both options side by side.
If you have owned your property for several years, a combination of mortgage repayments and any house price growth means your equity has likely increased. Higher equity means a lower loan-to-value (LTV) ratio, which can unlock better rates. For example, if you were at 90% LTV when you first purchased and are now at 70% or below, you may have access to rate tiers that were not available to you at the outset.
It is worth getting an up-to-date estimate of your property’s current value before speaking to a broker, as this will inform which LTV band you sit in and therefore what rates you can realistically access.
A remortgage application requires broadly the same documentation as an initial mortgage application. You will typically need: recent payslips (or SA302 tax calculations if self-employed), three to six months of bank statements, your current mortgage account details including outstanding balance and deal end date, proof of identity and address, and an estimate of your property’s current value. If you are switching lender, a formal valuation will be instructed as part of the process.
Having this information ready before you speak to a broker significantly speeds up the process. The Mortgage Consultancy can walk you through exactly what is needed for your specific application.
General guidance only: This article is intended as an introduction to remortgaging and does not constitute financial advice. The right option for your circumstances will depend on your current deal, your lender, your equity position, and your wider financial situation. Always seek regulated mortgage advice before making a decision.
The Mortgage Consultancy advises homeowners across Sidcup, DA14, DA15 and the wider Bexley and Bromley area. We are authorised and regulated by the Financial Conduct Authority and search the full mortgage market on your behalf.
Answer a few quick questions and one of our advisers will compare the full market and come back to you with the most competitive options available.
Whole-of-Market · No Upfront Fees · 25+ Years Experience