Mortgage Rates Are Rising Again – Why You Should Review Your Mortgage Before Your Fixed Rate Ends
Mortgage rates have increased again this week, adding further pressure to homeowners across the UK. While rate movements are now a regular part of the mortgage market, many borrowers are still caught off guard when their fixed-rate deal ends.
If your mortgage deal is due to expire within the next 6 months, reviewing your options early could save you a significant amount of money.
Why Mortgage Rates Are Increasing
Mortgage rates are influenced by several factors including inflation, swap rates, and decisions made by the Bank of England. When lenders anticipate higher funding costs, they often adjust their mortgage pricing.
In recent weeks, lenders have begun increasing fixed-rate mortgage deals again, meaning borrowers who delay reviewing their mortgage may end up paying more when their current deal expires.
What Happens When Your Fixed Rate Ends?
Many homeowners assume they can simply wait until their fixed-rate deal ends before taking action. However, if no new deal is arranged, your mortgage will normally move onto your lender’s Standard Variable Rate (SVR).
SVR rates are usually significantly higher than fixed mortgage deals, which can cause monthly payments to increase sharply.
For example, a homeowner coming off a fixed rate of 2%–3% could potentially move onto an SVR of 7% or more, depending on the lender.
Why You Should Review Your Mortgage Early
One of the biggest advantages borrowers have is the ability to secure a new mortgage deal months before their current rate expires.
Most lenders allow you to arrange a new mortgage up to 6 months in advance, which means you can:
- Lock in a rate before further increases
- Protect yourself from market uncertainty
- Avoid automatically moving onto your lender’s SVR
- Plan your finances with certainty
If rates rise again before your deal ends, having secured a rate earlier could make a substantial difference to your monthly payments.
Should You Fix Your Mortgage Now?
Whether you should fix your mortgage now depends on several factors including:
- Your remaining mortgage balance
- How long you plan to stay in your property
- Your attitude to risk and payment stability
- Current lender deals available
A mortgage review allows you to assess whether a 2-year, 3-year, or 5-year fixed rate could be the right option for your circumstances.
Don’t Leave Your Mortgage Review Too Late
One of the most common mistakes homeowners make is waiting until their lender contacts them close to the end of their fixed rate.
By this stage, available deals may have already increased.
Reviewing your mortgage 6 months before your fixed rate ends gives you the best chance of securing a competitive deal and avoiding unnecessary payment increases.
Speak to a Mortgage Adviser
At L & K Financial Ltd, we help homeowners review their mortgage options early so they can make informed decisions about their next deal.
By assessing your circumstances and comparing mortgage products across lenders, we can help you find a solution that suits your needs and protects you from unexpected payment increases.
If your fixed-rate mortgage is ending within the next year, now is the ideal time to review your options.