What happens when your fixed-rate mortgage ends?
Mortgages
An estimated 1.8 million fixed-rate mortgages will end in 2026, according to UK Finance (15 December 2025).
If you’re among the homeowners whose deal will end in the coming months, read on to find out why you should be proactive, what your options are, and what it could mean for your finances.
First, you don’t need to wait until your existing deal ends before you search for another mortgage. You can usually lock in a deal up to six months in advance, and if rates come down, you’re not committed to the deal and can take your business elsewhere.
Keep in mind that if you’ve paid a product fee upfront, you may lose this money.
Your 3 main options when your mortgage deal ends
- Take out a new mortgage deal with your current lender
Your current mortgage lender will usually contact you a few months before your existing deal ends with offers. Sticking with your existing lender is known as a “product transfer”.
This can be an attractive option as the process is usually quicker and involves less paperwork than if you were to remortgage with a new lender.
- Choose a mortgage with a different lender
Even if your current lender offers you a good deal, it might be worth shopping around and reviewing what other options are available. A competitor could offer you a lower interest rate, which would save you money.
If you choose this option, you’ll need to apply for a mortgage with the new lender, which will involve affordability checks and demonstrating your ability to meet the repayments.
- Move on to your lender’s standard variable rate
If you don’t take out a new deal with either your current lender or a new one, you’ll usually be moved on to your existing lender’s standard variable rate (SVR).
While this might seem like the simplest option, the SVR isn’t usually competitive, and you could end up paying much more in interest than if you took out another deal. However, there are times when moving on to the SVR might make sense, for example, if you’ll be moving home soon.
The base interest rate may have changed since you fixed your previous deal
Whichever of the three options you choose, you’re likely to notice that interest rates have changed since you fixed your previous deal.
To tackle high inflation, the Bank of England (BoE) started to increase interest rates at the end of 2021. As the pace of inflation slowed, the BoE has made a series of cuts since August 2024. As of February 2026, the base rate stands at 3.75%.
If your five-year fixed-rate deal ends in 2026, the BoE base rate would have been at a historic low of 0.1% when you took out your deal. As a result, the interest rate you pay once the deal ends will likely be higher.
In contrast, if you took out a two-year fixed-rate deal in 2024, the BoE base rate was higher than it is now. So, you could find that the interest rate and your repayments are lower.
When comparing deals, you might first want to consider whether you want to fix your interest rate again.
The main advantage of a fixed-rate deal is that you know exactly what your repayments will be each month, as the interest rate will not change during the term. However, if the BoE cuts interest rates further, as it’s expected to do, you wouldn’t benefit.
With a variable- or tracker-rate mortgage, the interest rate you pay and your repayments could rise and fall throughout the term.
Experts predict that the BoE will make several more cuts to the interest rate in 2026. However, there’s no guarantee that this will happen, and the BoE could even increase the base rate. If you choose a variable- or tracker-rate mortgage, it’s important to assess how you’d cope with the potential changes.
We could help you find a mortgage
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Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.