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What Happens When My Fixed-Rate Mortgage Ends?

By zincdigital9,

  Filed under: News
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When it’s time for your fixed-rate mortgage to come to an end, it’s time to take action. There are three paths that you can take. 

Allegro Mortgages are a team of experienced mortgage brokers. We’re based in Milton Keynes, helping people here and in the surrounding areas get a mortgage product that works for them. So, let’s weigh up the options. 


Choosing a Product Transfer

A product transfer is when you choose a new mortgage product from your existing lender. It can be a great choice, as there are often preferential rates offered to retain existing customers, you can save on additional costs such as legal and valuation fees. It can also be a faster process, with less paperwork. Nevertheless, it’s always a good idea to look outside of your existing lender to make sure that there is not an even better rate available to you from elsewhere. At Allegro Mortgages, we’ll look at both the product transfer and new product rates, to make sure that your final product is the most suitable for you. 


Transitioning to the Standard Variable Rate (SVR) 

If you don’t take action, your mortgage rates will transition to the SVR. It’s very unlikely that this is the most cost-effective choice. Your rate is likely to have been fixed up to five years previously, and there have been a lot of changes since then both in your own circumstances and in the mortgage market at large. The interest rate on an SVR mortgage is usually higher than your previous fixed rate, which will have a big impact on your monthly payments. What’s more, due to its variable nature, your provider can change the rate at any time, at their discretion and without reason. This will make it hard to budget in the long term, as your repayments may rise over time.  


Remortgaging with a new provider

Opting for a remortgage with a new provider gives you the opportunity to explore new deals. It’s best to speak with a mortgage broker who can discuss each product with you, and support you in choosing one that fits your needs both in terms of monthly payments and interest rates. As it’s likely that your circumstances will have changed since your initial mortgage product was taken out, it’s always a good idea to see what options are available. Nevertheless, there are sometimes additional costs associated with a remortgage. A good mortgage broker will be able to help you consider what is the most suitable product with all the factors taken into account. 


If you know that your current fixed rate mortgage product is coming to an end this year, it’s best to begin thinking about your next steps six months in advance. This gives you plenty of time to make an informed decision, allows time for the process to be approved in good time, but is short enough that the rates that we show you initially will still be available to you when it’s time to move to the new mortgage product. 


At Allegro, we’ll still keep our eyes open for better mortgage products for you, even when an application has been submitted. Therefore, getting in early doesn’t mean that you’ll miss out on a better product if the rates improve. It just means that the paperwork and stress is out of the way long before your product ends, and it’s a simple switch. 


If you’re interested in a Product Transfer or Remortgaging, Allegro Mortgages can help. We take the time to get to know you, your circumstances, and the requirements you have of a mortgage product. We want you to be confident and comfortable with the product you choose, so we’ll make sure that your questions are answered and your application is taken care of by our qualified professionals. 


For those whose mortgage product runs out this year, we’d like to hear from you. Get in touch with us today to arrange a free, no obligation consultation with one of our friendly team.