My Low-Rate Mortgage Expires This Year, What Should I Do?

Table of Contents

Are you currently enjoying a low mortgage rate that’s set to expire this year? If you’re unsure about your next steps, don’t worry – you’re not alone. Many homeowners face this situation, and with a bit of planning, you can smoothly transition to a new deal. Here are three essential tips to help you navigate this period:

1. Don’t Bury Your Head in the Sand

It’s natural to feel anxious about rising interest rates, but ignoring the situation won’t make it go away. In fact, waiting until the last minute can severely limit your options and potentially cost you more in the long run. Instead, tackle the issue head-on. A proactive approach will give you more control and a better chance of finding a favourable deal.

2. Plan Early

Timing is everything when it comes to securing a new mortgage deal. Start researching your options at least six months before your current rate expires. This window gives you ample time to explore the market and compare different products. Early planning ensures you’re not rushed into a decision and could secure a mortgage that suits your needs.

3. Shop Around for the Best Deals

While it might be convenient to stick with your current lender, they may not offer the most competitive rates. Shopping around is crucial. A mortgage broker can often access a broader range of products and potentially find deals that save you interest compared to the deals offered by your current lender. Brokers have the expertise and resources to tailor their search to your specific circumstances, helping you find the the most suitable deal.

Avoid the Standard Variable Rate

One of the biggest pitfalls you can encounter is defaulting to your lender’s standard variable rate (SVR) once your fixed term ends. SVRs are typically much higher than other available rates, leading to significantly increased monthly payments. Being proactive and arranging a new deal before your current one expires can help you avoid this costly mistake.

Final Thoughts

Facing the end of a low-rate mortgage can be daunting, but with early planning and the right guidance, you can secure a new deal that keeps your payments manageable. Remember to start early, explore all your options, and consider working with a mortgage broker to find the best rates. By taking these steps, you’ll be well-prepared for the transition and can continue to enjoy peace of mind with your mortgage.

There may be a fee for mortgage advice. The precise amount will depend on your circumstances and will be agreed with you before proceeding but estimate this to be £499.

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

Picture of Thomas Honour

Thomas Honour

Business Owner & Principal Mortgage Advisor

Share this post:
× Chat on WhatsApp