What Happens When Your Mortgage Deal Ends?
When your fixed-rate mortgage or tracker deal ends, you don't just carry on at the same rate. You move to your lender's Standard Variable Rate (SVR)—and that's usually significantly higher than what you've been paying. Understanding what happens when your mortgage deal ends, when it happens, and what your options are can save you thousands of pounds.
What Actually Happens When Your Deal Ends
When your fixed or tracker rate period expires (typically 2, 3, 5, or 10 years), your mortgage automatically reverts to the lender's SVR unless you take action beforehand. The SVR is a variable rate set entirely at your lender's discretion—it's not pegged to the Bank of England base rate like a tracker is. It moves up or down when your lender decides, independent of market conditions.
Here's what that looks like in real numbers. Say you took out a £250,000 mortgage at 4.2% fixed. Over 25 years, your monthly payment is £1,302. When your fix ends and you move to SVR at 5.8%—which is typical for many lenders in 2026—your payment jumps to £1,507. That's £205 more per month, or £2,460 per year, for doing nothing.
If your SVR hits 6.5%, you're paying £1,588/month—£286 more than your fixed rate. Over a year, that's £3,432 extra. Most people don't realise this happens automatically until they see their payment go up.
SVR is often described as "the rate you get if you do nothing." That's accurate. It's also "the rate your lender hopes you don't notice." That's also accurate.
The key point: you do not have to accept this. Your lender will contact you before your deal ends (typically 20–30 days before), and that's your trigger to act.
When Does Your Deal End? Reading the Timeline
Your mortgage offer paperwork or current statement shows your deal end date. It's the date when your fixed or tracker period expires.
The lender's legal obligation is to give you notice at least 20 days before (in practice, most give 4–6 weeks). This notice tells you:
- Your deal end date
- Your current SVR (the rate you'll move to automatically)
- Your new monthly payment if you do nothing
- Details of any other rates available
Mark this date in your calendar now. Set a reminder 6–8 weeks before the end date—not the day the notice arrives. Why so early? Because:
- Mortgage lenders have lead times. It can take 2–3 weeks from application to completion for a new deal.
- Rates move daily. If rates are rising, locking in early is often cheaper than waiting.
- Early repayment charges (ERCs). Some existing deals charge 1–5% of your outstanding balance to move to another rate. You need time to calculate whether the savings justify the exit fee.
You can read your mortgage statement to find this information, or call your lender directly: "When does my current deal end?" They'll tell you the exact date.
SVR Explained: Why Rates Jump, and What Your Lender Isn't Telling You
SVR is higher than fixed because it's discretionary. Your lender sets it based on funding costs, wholesale interest rates, and—let's be honest—what they think you'll tolerate. Unlike a fixed rate, which was negotiated upfront, SVR is "we'll tell you what it is when your deal ends."
Here's the structural reality: lenders make much higher margins on SVR customers than on new-deal customers. A new customer shopping around gets competitive quotes. An existing customer who stays on SVR usually pays 1–2% more than a new deal they could get elsewhere.
The Bank of England base rate sets the floor for most variable mortgages. SVR typically sits 2–3 percentage points above this. So if base rate is 4.25%, you might see lenders' SVR at 6.5–7.25%. Trackers usually sit 1.5–3 points above base—significantly cheaper.
By the time your deal ends, the economic environment could be very different from when you took out the original mortgage. Rates might be rising (bad news for SVR holders). Rates might be falling (SVR will be lower too, though lenders are slow to drop it). Your lender's funding costs might have moved independently. All of this affects what SVR looks like on the day your deal ends.
The upshot: do not assume SVR is temporary. If you don't switch, you'll stay on SVR indefinitely, paying the higher rate year after year.
Your Options When Your Deal Ends
You have three main paths.
Option 1: Remortgage (most common)
Switch to a new fixed-rate or tracker deal with your existing lender or a different one. This is usually the cheapest option if you stay within 3 months of your deal end date (lenders charge no exit fees at that point).
Remortgaging involves a new mortgage application and underwriting (2–3 weeks), a property revaluation (£100–£300), new arrangement fees (£0–£1,500 depending on the lender and rate), and no early repayment charge if you do it within the grace period.
When should you remortgage covers the full strategy, but the short version: start shopping 6–8 weeks before your deal ends. Lock in a rate within the last month of your current deal if possible.
Use our mortgage calculator to compare what a new rate will cost you monthly versus staying on SVR. The numbers usually make the case for switching.
Option 2: Stick with your lender on SVR (not recommended)
Do nothing, and you move to their SVR. You can switch later (within 6 months, usually without penalty), but you'll pay the higher rate in the interim.
This is sometimes unavoidable—e.g., if your income has changed and other lenders won't offer you a new deal. But if you can remortgage, the monthly savings usually justify the small admin effort.
Option 3: Switch to another rate with the same lender
Many lenders offer competitive rates to existing customers moving from one product to another. It's worth asking your lender what they can offer before you shop elsewhere. Their incentive is to keep you; they might offer a rate that's hard to beat.
Always compare with 3–5 other lenders before deciding. Rates differ by 0.3–0.7% across the market, which is £200–£500/month on a £250k mortgage.
Costs of Remortgaging: What to Budget For
When comparing offers, don't just look at the interest rate. These costs also apply:
| Cost | Typical range | Notes |
|---|---|---|
| Arrangement fee | £0–£1,500 | Some lenders have no fee but higher rates; others vice versa. Always compare total cost, not just rate. |
| Valuation | £100–£350 | Most lenders require a basic valuation. Full survey is extra (£400–£600) but recommended for older homes. |
| Solicitor/conveyancer | £800–£1,500 + disbursements | Shop around; prices vary widely. Get quotes from 3 firms. |
| Early repayment charge (ERC) | 1–5% of balance | Only if breaking your current deal early. Zero if you're within the grace period. |
The most common mistake: focusing on arrangement fee alone. A 4.1% deal with no fee might cost more over 5 years than a 4.0% deal with a £999 fee—it depends on the exact numbers. Always factor in all costs when comparing.
How to calculate your mortgage affordability walks through the full cost picture. And if you're concerned about whether remortgaging is right for your situation, porting your mortgage when moving covers what happens if you're also selling and buying at the same time.
When It Makes Sense NOT to Remortgage
There are narrow cases where staying on SVR or skipping a remortgage is the right call:
You're moving house within 3 months. Remortgaging costs upfront fees and admin for a deal you won't hold long.
Your mortgage is nearly paid off. If you have 1–2 years left on your term, the total amount is small, and SVR cost is negligible. (But run the numbers.)
Your income is unstable or you've been self-employed less than 2 years. Some lenders won't lend to you; others charge premium rates. You might be better off on SVR temporarily.
For almost everyone else: remortgage before you hit SVR.
Common Mistakes to Avoid
Waiting until your deal ends to start looking. By then, 10–15 days of your grace period are gone. Lenders get backed up; you might not complete in time. Start 6–8 weeks early.
Not checking your mortgage statement. The deal end date, current rate, current balance, and remaining term are all there. Many people never check, then panic when the payment goes up.
Assuming you can't switch lenders. You can, as long as the lender is willing to lend on your current income and property. Don't let your existing lender's lower rates fool you—always compare outside quotes.
Forgetting early repayment charges. If your current deal has an ERC and you're outside the grace period (usually the last 3 months), you might pay 1–5% of the balance to exit. Factor this into your break-even calculation. On a £200,000 mortgage with a 2% ERC, that's £4,000 to switch—but saving £250/month on a new rate pays that back in 16 months.
Not getting valuation quotes upfront. Some lenders charge £300+ for a valuation; others include it free. A £500 difference across 5 years is immaterial, but always ask.
Overstretching to a lower rate. Yes, a 4.0% deal is cheaper than 4.5%. But only if you can afford both comfortably. Stress-test your budget: can you handle a 6% rate if it exists in 5 years? If not, the lower payment now isn't worth the risk. Can you get a mortgage over 40 years and mortgage amortisation explained both help you think through these scenarios.
Frequently Asked Questions
Q: What's the difference between SVR and a tracker? A: SVR is set by your lender and can change whenever they want. A tracker is set by the Bank of England base rate plus a fixed margin (usually 1.5–3%). Trackers move in line with BoE decisions; SVR moves independently. SVR is almost always more expensive.
Q: Can my lender change my SVR after I move to it? A: Yes. SVR can change monthly, weekly, or even daily (though lenders typically give 30 days' notice before increases). This is why it's risky—you have no rate certainty.
Q: How long can I stay on SVR? A: As long as your lender will let you. There's no legal time limit. Some lenders encourage you to switch after 6–12 months; others are happy to keep you on SVR indefinitely (because the margins are excellent). You can switch whenever you want.
Q: Do I have to remortgage with the same lender? A: No. You can switch to any lender willing to lend to you. Shopping around is strongly recommended; rates and fees vary significantly.
Q: What if my property value has fallen? Can I still remortgage? A: Possibly, depending on how much. If your loan-to-value (LTV) ratio is now higher than 85–90%, fewer lenders will touch you, and rates will be higher. How much deposit do you need for a mortgage covers LTV in detail.
Q: What if I'm in negative equity? A: If your mortgage exceeds your property's value, most lenders won't let you remortgage until equity returns. You'll stay on SVR (or your existing rate if you haven't hit the end date yet). This is rare in recent years but was common post-2008.
Q: Can I pay off my mortgage early to avoid SVR? A: Yes, but check whether an early repayment charge applies. If it does, compare the ERC cost versus paying SVR for the remaining term. Should you pay off your mortgage or invest explores the trade-offs in detail.
Q: How much will my SVR payment increase? A: It depends entirely on what your lender's SVR is when your deal ends. Typical increase is 1–2% above your current fixed rate, but it varies. Use our mortgage calculator and plug in a test SVR rate to see the impact on your monthly payment.
The Bottom Line
When your mortgage deal ends, you move to SVR unless you act. SVR is almost always more expensive than available fixed or tracker rates. Your lender will contact you 20–30 days before; don't wait for that notice. Start shopping 6–8 weeks before your deal ends, compare at least 3–5 lenders, and lock in a new rate within the last month of your current deal.
The cost of inaction—staying on SVR for even a year—usually exceeds the cost and admin of remortgaging by £1,500–£5,000. Run the numbers with our mortgage calculator to see your specific situation.