What Happens At The End of Your Fixed Rate Period?

What Is A Fixed Rate Mortgage?

A fixed rate mortgage is a type of mortgage where the interest rate of your monthly repayments will remain the same for an agreed period of time. After this time has elapsed, the interest rate will be subject to change. It’s during this time – when your fixed rate agreement is coming to an end – that you should consider reviewing your mortgage.

Why Should I Review My Mortgage When My Fixed Rate Mortgage Is Coming to an End?

As soon as your fixed rate mortgage agreement expires, you will automatically be enrolled onto your lender’s standard rate. In today’s climate, these interest rates will generally be in the region of 4-6%. It’s important, therefore, that you review your mortgage at this time because it ensures that you will not overpay on your mortgage payments.

Of course, in some cases, 4-6% might represent a reduction in payments, but it’s always best to check and see what other routes are available.

When Specifically Should I Review My Mortgage?

It’s vital that you don’t leave it until the last minute when it comes to reviewing your mortgage. You want to have this discussion well before your fixed rate mortgage is due to end. We recommend that you begin considerations around five months prior to your expiry date, as this allows you to have a thorough conversation with your mortgage advisor and fully explore all available options.

Having enough time to work out a plan and structure for your mortgage transfer will prevent a rushed solution that runs the risk of not being the best option for you and your family.

Which Elements of my Mortgage Should I Review?

While the review is timed to coincide with the end of your fixed rate mortgage, you can use this time to assess other aspects of your mortgage too. For example, if you are making a saving on your interest rate when your fixed rate mortgage ends, you may wish to allocate some of those savings towards setting up a shorter term with your lender.

Furthermore, you may want to consider whether or not another fixed rate mortgage is suitable for your short, medium and long term goals. Personal and financial situations can change, so it might be appropriate to think about other options such as a tracker or an offset mortgage. Perhaps you may have savings that could be working harder for you?

Home Financial NW Ltd

If your fixed rate mortgage agreement is coming to an end, we can help you. Our team of experts are fully qualified to offer you bespoke mortgage advice. We’ll work with you to explore all options, ensuring that you make a fully informed decision that works best for you and your family.

If you’d like to book a consultation, or simply find out more, please contact us on 01925 939170. Alternatively, you can fill in this quick contact form and we’ll be in touch with you as soon as possible.

Risk warnings:

– You may have to pay an early repayment charge to your existing lender if you remortgage early.

– Your home may be repossessed if you do not keep up the repayments on your mortgage.