If your fixed-rate mortgage secured in 2020 ends this year, you’re not alone. Around 470,000 UK homeowners are in the same position. When your deal ends, your monthly payments could rise by up to £510.
Why This Matters
That’s because many fixed deals taken in 2020 were averaging around 2.11% interest. When they end, they often move to your lender’s Standard Variable Rate (SVR) – now averaging 7.13%. That’s a big jump. For an average mortgage of £178,523, payments could go from £765 to £1,227. Ouch.
So what can you do?
Don’t panic – just plan. Here are five steps to protect your mortgage and your money:
1. Start 6 months early
You don’t need to wait. Many lenders let you lock in a new deal up to six months before your current one ends. This gives you time to look at the market, speak to an expert, and avoid making a rushed decision later.
2. Talk to a mortgage broker
A mortgage broker (like us at Skyline) can check deals across the whole market. This means we often find better rates than your lender is offering directly.
We’ll also explain the details and help you avoid hidden fees or poor-fit products.
3. Know what happens if you do nothing
When your deal ends, your mortgage will automatically move to your lender’s SVR unless you take action.
SVRs are usually higher than fixed or tracker rates. They can also go up at any time, and they’re not linked to the Bank of England base rate.
In short: they’re risky and usually more expensive.
4. Think about Fixed vs. Tracker
Fixed rates give you certainty. Trackers can be cheaper now, but they can rise too. Some fixed rates have started to fall again, with deals under 4% now reappearing.
If you’re happy to take a little risk, tracker deals might offer better short-term value. But if you want peace of mind, a fixed rate could be the better choice.
We’ll help you look at both and decide what works for you.
5. Look at the whole cost - not just the rate
The interest rate isn’t everything. Some deals charge high fees that can cancel out any savings.
We’ll help you calculate the true cost of each mortgage – including any fees – so you know you’re getting real value.
For example:
Let’s say you’ve got £200,000 remaining on your mortgage, with 20 years left.
If you moved from the SVR to a new fixed deal at 4.5%, you’d save almost £300/month – or £3,500 per year.
Common mistakes to avoid
Waiting too long: Don’t leave it until your deal ends. Start early so you don’t get stuck with a higher rate.
Sticking with your current lender without checking: They may not offer the best deal.
Choosing only based on the rate: Consider the full cost, including fees and flexibility.
What happens if rates drop again?
The next Bank of England decision is due on 7 August 2025. Some believe more rate cuts could follow this year, but nothing’s guaranteed.
That’s why it's worth reviewing tracker and flexible products if you want to take advantage of future cuts. We’ll help you figure out what makes sense.
Don’t leave it to chance - Talk to Tony
Mortgage rates might be stabilising, but that doesn’t mean it’s safe to sit back. The best thing you can do is get ahead of your renewal date and speak to someone who can explain the options clearly.
At Skyline, we’ll do the legwork for you - comparing lenders, checking the fine print, and helping you avoid paying more than you need to.
Book a no-obligation online mortgage appointment with our award-winning independent mortgage consultant, Tony. Simply find a time that suits you on our online calendar.
Don’t sleepwalk into a higher mortgage. If your fixed rate is ending this year, there’s still time to act. Let us help you find a deal that protects your budget.
Your home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. A fee may be charged for mortgage advice. The amount will depend on your circumstances.
Skyline Mortgage Consultants Limited is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority. Skyline Mortgage Consultants LTD is registered in England and Wales Number 8157062. Company Registered Office: Suite130, 394 Muswell Hill Broadway Muswell Hill London N10 1DJ.