What happens when your fixed-rate mortgage ends?

When your fixed-rate deal ends, your lender automatically moves you onto its standard variable rate (SVR) — a rate it sets itself that is almost always far more expensive than the deal you were on. Nothing else changes automatically: your balance and term stay the same, but your monthly payment usually jumps. The fix is to arrange a new deal to start the moment your fixed term ends.

What actually happens the day your fixed rate ends?

When your fixed-rate period ends, your lender automatically moves you onto its standard variable rate (SVR). Your mortgage doesn’t end and nothing is cancelled — your balance and remaining term carry on exactly as before. The single thing that changes is the interest rate, and it almost always changes for the worse, because the SVR is typically far higher than the rate you’d been paying.

This is the quiet trap at the heart of every fixed mortgage. The introductory rate that felt competitive when you took it has an expiry date, and the lender’s “default” rate waiting on the other side is rarely a rate anyone would choose deliberately. You don’t have to sign anything or miss a payment to end up on it — it happens by default unless you act first.

Why is the SVR so much more expensive?

The SVR is the rate a lender charges when you’re not on any deal, and each lender sets its own. Because it isn’t competing for your business in the way an introductory rate does, it carries no incentive to be sharp. It can also change whenever the lender decides — it isn’t fixed, and it isn’t directly tied to the Bank of England base rate, though lenders often move it in the same direction. You can read more about how the Bank of England sets Bank Rate and why that’s only loosely connected to what your lender charges.

The practical upshot is simple: the gap between an SVR and an available fixed or tracker rate is usually wide enough that every month spent on the SVR is money you didn’t need to spend. Our explainer on the standard variable rate goes into why it sits where it does.

How much could rolling onto the SVR cost you?

Answer first: on a typical mortgage, sitting on the SVR rather than a competitive deal can add a meaningful amount to your monthly payment — often a difference measured in the hundreds of pounds rather than tens, depending on your balance and the gap between the two rates.

The exact figure depends on three things: your outstanding balance, your remaining term, and the difference between the SVR and the rate you could switch to. The larger your balance, the more each percentage point of difference costs you. You can put your own numbers into our remortgage calculator — enter the SVR as your current rate and a realistic new rate, and it shows the monthly difference straight away. That single comparison is usually all it takes to see why acting before the deal ends matters.

What are your options when the fix ends?

You have two routes off your expiring deal, and a third “non-option” that’s really just inaction.

Option one: a product transfer

A product transfer means taking a new rate with your existing lender. It’s quick, usually involves no valuation, no legal work and no fresh affordability check, and can complete in days. The trade-off is that you only see your current lender’s rates — and the best deals in the market are often reserved for new customers. It’s covered in full in product transfer vs remortgage.

Option two: a remortgage

A remortgage means moving to a new lender who pays off your existing mortgage. It opens the whole market, lets you change your term or rate type, and can release equity — but it’s a full application with its own fees. For many borrowers the wider choice produces a better total cost even after those costs; for others, the simplicity of a transfer wins. The honest comparison is the total cost over the whole deal, not the headline rate.

The non-option: doing nothing

Doing nothing means staying on the SVR. It’s the most expensive outcome and the one the lender is quietly counting on. There’s no penalty for leaving the SVR — once your fixed period is over, early repayment charges generally no longer apply — so there’s rarely a good reason to stay on it.

When should you start, and how do you avoid the SVR entirely?

Answer first: start three to six months before your fixed rate ends. That window lets you secure a new deal in advance and have it complete the day your fix expires — so you step straight from one competitive rate to the next, never touching the SVR.

Most lenders let you lock a new rate up to six months ahead, and a mortgage offer typically stays valid for three to six months once issued. That overlap is exactly what lets you time the handover. If rates happen to fall before you complete, a locked offer isn’t binding until completion, so your broker can often re-apply for the better one. The full timing logic is in when to remortgage.

If you’re switching before your fix is technically over to grab a better rate, watch for early repayment charges — the usual move is to apply early but complete the day after your deal and its charge end.

Already on the SVR — is it too late?

Not at all. If your fix has already ended and you’ve been rolling along on the SVR, you can switch at any time. Because the fixed period is over, there’s normally no early repayment charge to worry about, so the only question is which new deal is best for you. Every month you delay is money lost, so this is one of the few situations where acting sooner is almost always right. Start with the remortgage hub to see your options.

What’s different about this for contractors and the self-employed?

For a contractor or company director, the end of a fix is more than a rate decision — it’s a moment to make sure your mortgage matches how you now earn. Many people took their original mortgage as an employee and have since gone independent. At renewal, their existing lender’s process often can’t read a day rate, dividends or retained profit well, so it offers weak transfer rates and they drift onto the SVR.

If that’s you, the end of your fix is the ideal time to remortgage as a self-employed borrower — moving to a lender that annualises your contract income properly rather than penalising you for it. It’s also worth gathering your evidence early; our document checklist sets out what to have ready by contractor type. The same day rate your current lender shrugs at can support a strong, competitive deal at the right one.

Should you fix again, or switch rate type?

The end of a fix is also a natural moment to reconsider the type of rate you want next, not just the lender. Many people simply re-fix because it’s familiar, but it’s worth a deliberate think. A new fixed rate gives you certainty again; a tracker follows the Bank of England base rate and moves with it; an offset can suit you if you hold cash. Which fits depends on your need for a predictable payment and how much movement your budget can absorb — a decision we walk through in fixed or tracker when you remortgage. It’s also worth deciding the length of any new fix: a shorter term gives certainty now and an earlier chance to reprice, while a longer one locks your payment in for longer. Comparing the options across the whole market is exactly where a fixed-rate and tracker review pays off, rather than re-fixing on autopilot with the same lender.

The bottom line

When your fixed rate ends, the lender’s SVR is waiting by default — and it’s almost always the most expensive place your mortgage can sit. Treat your fix’s end date as a deadline, not a surprise: start three to six months ahead, compare a product transfer against a whole-of-market remortgage on total cost, and complete the new deal the moment your fix expires. For contractors, make it a chance to move to a lender that reads your income properly. If you’d like that mapped to your own deal end date, speak to an adviser. Independent, official guidance on switching is also available from MoneyHelper.