Is your fixed-rate mortgage coming to an end?

The end of a fixed-rate mortgage deal is a useful point to review your borrowing. Leaving the decision until the last moment could mean spending time on your lender's standard variable rate while a new arrangement is put in place.

If your deal ends within the next six months, start by checking the exact end date, outstanding balance and any early repayment charges. Those details will help you compare options on a realistic basis.

What happens when your fixed rate ends?

Unless you arrange another deal, your mortgage will usually move onto the lender's standard variable rate. That rate can change and may be higher than other deals available to you.

The size of any payment change depends on your balance, remaining term and the rate offered. Check your lender's notice rather than assuming what the new payment will be.

Compare a product transfer with remortgaging

A product transfer means choosing another deal with your existing lender. A remortgage usually means moving the loan to a different lender while staying in the same property.

The mortgage and remortgage services available through Signature Concierge include support with these choices. Comparing them can help you understand the total cost and practical implications of staying or switching.

A product transfer may involve less administration, while another lender may offer a different rate or features. Neither route is automatically better. Your income, property value, loan-to-value ratio and future plans all influence what is suitable.

Why start the review early?

Many lenders allow a new rate or mortgage offer to be arranged in advance, often up to six months before the existing deal ends. The timing and validity of an offer depend on the lender and product.

Starting early leaves time to gather documents, compare costs and coordinate the change. It does not mean you should complete early and incur a charge unnecessarily.

If your circumstances or available rates change before completion, ask your adviser what can be reviewed. Do not assume an offer can be changed without conditions or costs.

Look beyond the headline interest rate

Compare the full cost over the period you expect to keep the mortgage. Relevant points include:

• Early repayment charges on the existing deal.
• Product, valuation, legal and administration fees.
• Monthly payments and the total cost over the deal period.
• Overpayment limits and flexibility if you may move.
• The effect of changing the mortgage term on overall interest.

A longer term may reduce monthly payments but increase the total interest paid. Any additional borrowing also needs a separate affordability assessment.

It is also sensible to check whether your personal protection cover still reflects your mortgage balance and the people who depend on your income.

Speak to Signature Concierge today to arrange a mortgage review with our mortgage partners before your fixed-rate deal ends.

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