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After a fixed rate mortgage ends, fix again? For how long?

dog ditting on a doormat - is your mortgage fix ending? Find your what your options areIf your fixed mortgage has ended, or will soon, you could face a large increase in your mortgage payments.

Most mortgages revert to their lender’s Standard Variable Rate (SVR) when a fix ends. Some lenders use a different term, such as “Follow On Rate”, but SVR is the most common.

In 2023, the average SVR is 7.3% – many are much more. Millions of people are paying the SVR and most of them could do better, sometimes saving over a £1,000 a year, by switching.

Staying on an SVR for a while because you are about to move can make sense, but it is hardly ever a good medium or long-term option.

Contents

  • “I won’t be able to afford a new fix, let alone the high SVR”
  • “Fix and fix long” – not any more?
  • Your options when a fixed rate mortgage ends
  • The options explained
    • Do nothing and pay a variable interest rate
    • Get a new fix or a tracker from your current lender
    • Remortgage with your current lender
    • Remortgage with a different lender
  • Should you fix?
  • Some common situations
    • Your house has gone up a lot in value
    • Things have got harder
    • You want to borrow more to extend the house / new kitchen
    • You want to borrow more to repay some expensive debt
    • Extend the term of your mortgage
  • Need some expert help?

“I won’t be able to afford a new fix, let alone the high SVR”

This article is looking at your options about what fix or remortgage to get.

But the FCA expects more than half a million people will have difficulty paying their mortgage by the end of 2024 because of rising rates.

If this is your main concern, read Worried about the cost of your mortgage? Find out the help your lender can offer and talk to your lender about this as soon as possible. Delaying makes things harder.

“Fix and fix long” – not any more?

For years the standard advice has been that people should get a new fix and fix for as long as possible.

But with many experts expecting mortgage rates to peak in the next year or two and then reduce, this may not be a good time to get a fix, let alone a long fix, at what is a comparatively high rate.

Tracker mortgages have not been common for a long while. They track an index up and down, so they are variable rate mortgages. For example a tracker mortgage could be “Base rate plus 2%“.  Here you do not get the benefit of certainty about what you will be paying on what is probably your largest bill.

But trackers are normally cheaper than the lender’s SVR. And often there are no early repayment charges. So it may make sense to get a tracker for a while and then switch to a fixed rate when things are more clear.

This article looks at your choices.

Your options when a fixed rate mortgage ends

When a fixed rate mortgage ends, you have four options:

  1. do nothing – your mortgage moves to a SVR with your current lender;
  2. (a) get a new fixed rate from your current lender or (b) get a tracker rate from your current lender;
  3. get a different mortgage (fixed or tracker) with your current lender;
  4. remortgage (fixed or tracker) with a different lender.

Getting a new fix or tracker is often easy. Even if your credit record isn’t good, you may be able to get a reasonable rate from your current lender who will nor normally check your credit record or make an affordability calculation.

You can switch months or years after your fix has ended – you haven’t lost your chance if you don’t do it straight away.

The options explained

Do nothing and pay a variable interest rate

At the end of a fixed rate,  your mortgage continues but the interest rate changes.

Am example: You took out a 25-year mortgage and a 3-year fix. At the end of that three year fix:

  • your mortgage term has dropped to 22 remaining years;
  • your interest rate changes to the variable interest rate that was set in your mortgage terms.

For most mortgages, the variable rate you will pay is your mortgage lender’s Standard Variable Rate (SVR). SVRs between lenders – in December 2022 Barclay’s SVR was 6.49% and Santander’s 6.75% and Halifax’s 6.99%. SVRs from a “bad credit lender” may be much higher.

You need to know what your mortgage says and you also need to know what this rate is at the moment. If you aren’t sure, phone your lender – the answer is going to be very important for deciding what to do next.

Get a new fix or a tracker from your current lender

You can keep the same mortgage and get another fixed rate or a tracker from your current lender.

This is usually very simple. Most lenders won’t need to go through affordability calculations or look at your credit record. SeeCan I get a new mortgage fix with poor credit? for details.

A “new fix” keeps everything else about your mortgage the same: the term, the amount borrowed etc.

So with the 25-year mortgage 3-year fix example above, if you now choose a 5-year fix your term stays at 22 years. And in 5 years time when the new fix ends, you will have 17 years left on your mortgage.

A lender will often write to you a few months before your fix ends and offer another one.  Look out for this – it isn’t junk mail!

You don’t have to wait for this letter. Many lenders will talk to you about your options with up to 6 months to go before your current fix ends.

This may be a good offer, but it isn’t always – they are hoping you just accept it without looking at other possible deals. Many lenders keep their best deals for new customers…

So ask yourself:

  • should I fix, if so, how long for?
  • would I be better off getting a tracker mortgage if my lender offers one?
  • could I get a better deal elsewhere?

Remortgage with your current lender

Sometimes you want to change the details of your mortgage, for example:

  • add your partner’s name to the mortgage;
  • borrow more money eg to pay for an extension or to consolidate unsecured debt
  • pay a chunk off;
  • change the length of the mortgage.

Here you aren’t simply looking for a new fixed rate or a tracker, you need a completely new mortgage.

This isn’t as simple as just getting a new fix.

The lender will want to look at the affordability of the new mortgage – especially if you are borrowing more or taking someone’s name off the mortgage. In 2022 these affordability checks have become harder to pass because of the increases in your bills and other inflation.

There may need to be a new valuation of your house, proof of your income, your credit records will be checked and bank statements looked at. There may be legal fees, but these can usually be included in the mortgage.

If your lender says No to the new mortgage, ask why. Then you may want to see if you can get the mortgage you want from a different lender.

Remortgage with a different lender

This is getting a completely new mortgage. The new lender will need to see proof of your identity, value the house and look at your finances to check the mortgage is affordable.

This may sound stressful but it’s not quite bad as buying a house because you already own the house and you can always carry on with your current mortgage!

What deals you may get depends on how much equity you have. Equity is the current house value minus your mortgage, so you need a rough value for your house. If you have more than 20% equity you will have a wider choice of deals and they will be cheaper than if you have only 10%.

Should you fix?

There are two main situations where it probably isn’t a good idea to get a new fixed rate:

  • if you are likely to move soon, it may be better to stay on a variable rate until you do. Most fixed rates have penalties – sometimes large – if you repay them early.
    In theory getting a portable mortgage should solve this,  but porting the mortgage to your new house doesn’t always work well if you need to borrow more, or are buying somewhere a lot cheaper.
  • when you are close to the end of a repayment mortgage, staying on a variable rate makes sense. The interest you are being charged is dropping every month, so the gains from fixing are less.

The other situation is if you think mortgage rates may fall. No one can be certain what will happen but a good broker will be able to talk you through the options. The broker’s speculation about future rates are still a guess but they are an educated guess.

Brokers can also help you compare different options from different lenders, where the fixes, terms, fees and early repayments charges are different.

Some common situations

Your house has gone up a lot in value

This is good news because you will have a better choice of deals – if you just scraped a 5% deposit when you bought two years ago and now you have more than 10% equity for example.  Here in theory you may be able to get big savings by shopping around and looking at other lenders, so don’t take the first deal your current lender suggests.

But more equity will not help the affordability calculations for a mortgage. So this may still mean you have to stay with your current lender.

Things have got harder

If your family has got larger, your income has fallen, you are now self-employed, you are struggling because of rising cost of living, a poor credit rating … anything like this suggests that you may find it difficult to remortgage with a different lender.

Getting a new fix on your current mortgage may be your only option as your current lender is unlikely to do an affordability check. But this may still leave you struggling to may the mortgage. get debt help as soon as possible in this situation.

You want to borrow more to extend the house / new kitchen

When your mortgage fix ends is the best time to look at this, but it may be harder than you expect. Many lenders will insist you have at least 15% or 20% in the property after the remortgage. And as mortgage rates have gone up, you will already be paying more for your current mortgage. Go through a broker, not direct to a lender.

You want to borrow more to repay some expensive debt

You need a lot of equity for this to work – you won’t be able to borrow down to 5%.  Some lenders won’t allow it at all and most will limit the amount you can have.

Even if you can do this, it may not be a good idea. A lot of people just go on to get more credit once consolidating has “solved” their previous debt problems – in a few years time you have debt problems again and a much bigger mortgage.

If your situation is so difficult you are thinking of going to a broker who specialises in bad credit, take some debt advice first. There may be other options for dealing with large unsecured debts – but once you have put debts into your mortgage, these don’t work.

Extend the term of your mortgage

If you are remortgaging with a different lender, it can be tempting to go back to a 25-year mortgage, as that will reduce your payments even further.

But the point of a mortgage is to actually buy your house not be on an endless treadmill of 25 year mortgages. It’s usually best to resist this temptation and stick with your current term.

Also if you want to extend your mortgage term beyond your retirement age, your lender will usually want to fo a full credit record and affordability check. Which they normally won’t do if you only want a new fix with the same term.

Need some expert help?

If this all feels too complicated, don’t decide it is too hard and give up!

A mortgage broker will be able to suggest good deals and may have access to deals you can’t find. they are experts who are used to helping clients through the how long should I fix for decision. Or would a tracker be better at the moment?

You can find a broker here: Unbiased: Find an adviser.  Choose a broker who covers the “whole market” so you get the best choice of deals.

Even if you are good at most things financial, you should still consider using a broker. Mortgage choices can be complicated and brokers are also experienced in helping a mortgage go through as speedily as possible.

This article is kept up to date.


More Debt Camel articles:
what can you do when all your credit cards are maxed out and you can't pay more than the minimum?

Options when cards are maxed out

Will defaults stop me getting a mortgage?

Will defaults stop me getting a mortgage?

All articles about mortgages

All articles about mortgages

December 9, 2022 Author: Sara Williams Tagged With: Mortgages

Comments

  1. Lynn Jones says

    May 12, 2018 at 5:17 pm

    I had 3 year fix on my mortgage they didn’t send letter to say we could put a new fix on when things got bad we got in arrears but we have paid it down as best we could I asked for another fix on mortgage was told I couldn’t and couldn’t have interest only for couple of months my mortgage company changed their name for the company 3 times is this legal

    Reply
    • Sara (Debt Camel) says

      May 12, 2018 at 6:34 pm

      what is your mortgage lender called at the moment? what interest are you paying?

      Reply
  2. Katie fogarty says

    August 25, 2018 at 11:33 pm

    My fixed rate is coming to an end in four months and i havent received a letter. I want to keep the same provider (natwest) but my credit score has gone down. I have never missed or been late paying my morgage. Do you think i will be able to get a fixed rate through natwest with my score goibg down.

    Reply
    • Sara (Debt Camel) says

      August 26, 2018 at 7:01 am

      Probably! If you are just changing the fixed rate and not the term or the amount or anything else. You could give them a ring in and ask what rates will be available when your fix ends.

      Reply
  3. Sunny Khurmi says

    November 15, 2018 at 11:20 am

    My Fixed rate for 5 years of 5% has ended in October 2018. However due to my previous employer I ended uop with serious arrears on my mortgage. This has ruined my credit score and my partners. We both have a good income and also how property has increased in valve by 60%. Please can you help with some advice. We are unable to clear the arrears due to having three children and our monthly bills.

    Reply
    • Sara (Debt Camel) says

      November 15, 2018 at 4:54 pm

      Have you looked at how you can get your monthly bills down? It’s important you make an arrangement o start repaying the arrears.

      What interest rate is your mortgage now on? What was the fixed rate?

      Reply
  4. Cathal says

    June 19, 2019 at 9:51 pm

    Hi Sara. My Halifax mortgage is due for renewal. I had a 2 year fixed at 1.61%. The SVR is 3.74% adding £90 a month to the mortgage. Halifax are offering 2 deals online. 2 year fixed deal increasing mortgage by £70 per month or 5 year fixed increasing by £85 per month. I’m fearful Brexit could cause economic chaos. Would you have any advice? Thanks.

    Reply
    • Sara (Debt Camel) says

      June 19, 2019 at 9:58 pm

      I think you should talk to a mortgage broker. You may be able to get better deals from another lender and the broker can talk you through the choices and the advantages of a 2 or 5 year deal.

      Reply
  5. Jacquie says

    August 15, 2019 at 2:47 pm

    Hi Sara
    My fixed rate ends 31/10/19 , due to a break up we are selling the house. I have contacted my mortgage and they will not advise as the house is on the market. My worries are that the payments will substantially go up as we cannot lock into a fixed rate , please what advise can you give.
    We are currently separated and both pay into the mortgage account
    Many thanks
    jacquie

    Reply
    • Sara (Debt Camel) says

      August 15, 2019 at 4:45 pm

      If you are selling the house, it makes sense to live with the lender’s standard variable rate as you don’t want to lock in another fixed rate where there are normally exit penalties if you want to end the fixed early.

      Your current lender should tell you what rate the mortgage will change onto when the fix ends.

      Reply
  6. Sarah says

    October 26, 2019 at 3:37 pm

    My fixed rate mortgage is coming to an end soon, and I’m looking to remain with my current provider on a 5 year fixed rate.
    Do I put in the current value of my property as it in the current climate or do I put the value of my property when I bought it?

    As this would have an impact on my LTV, as it will be a significant different.

    Thanks

    Reply
    • Sara (Debt Camel) says

      October 26, 2019 at 3:39 pm

      It is the current value that matters for your new fix.

      Reply
  7. Paul says

    November 26, 2019 at 12:41 pm

    Hi, I am trying to remortgage but when I asked for a settlement figure on my secured loan it was higher than the outstanding balance. Is this correct and can I offer a counter offer. Thanks 

    Reply
    • Sara (Debt Camel) says

      November 26, 2019 at 12:45 pm

      The settlement figure is usually a figure that you can use any time over the next month or two. So it includes an extra month or two interest. You can ask trhem how they have calculated it and ask for a copy of the contract to if you aren’t sure it is correct. A lender won’t usually negotiate if the amount is right.

      Reply
  8. Julie says

    January 27, 2020 at 2:48 am

    What should be looked at….is how mortgage lenders or ripping us off and most of us don’t even see it..
    My fixed rate is about to expire….so am checking what’s what …fixed rate, 3/5 years , amount etc,etc….feeling really chuffed with myself because at last I’ve got my mortgage under £100,000…. ( the figures or example but to the right scale in terms of value)
    5 yrs @ 4.1% for 97,000 @ term left of mortgage 24 yr….I will be paying average £30 a month more…that not great but ok
    But then I think what if I put a different value in?
    See if you spot what I have?
    5yrs 3.1% for £100,000 @ term of mortgage 24 yrs , I be paying less £s ….but I still owe the same 5 yrs ago! My mortgage will never end.
    What the hell! Sorry but I can’t win…am hopping mad…
    How?? Can this be aloud?…. sorry change of subject…I need to take this further but not sure how…

    Reply
    • Sara (Debt Camel) says

      January 27, 2020 at 7:08 am

      Most fixed rate deals you can overpay by 10% per year. If that applies to the larger mortgage at lower rate, take that and immediately pay the 3k in cash off your mortgage.

      Reply
  9. Paul says

    January 29, 2020 at 12:16 pm

    Hi,
    I need advice please. I’m trying to remortgage but have been informed about my situation which some companies are surprised at.
    My mortgage is in my name only but I have a secured loan but this is in joint names mine and my wife’s.
    Is this allowed as some companies are shocked and never came over this. They say you can’t have one name on mortgage and 2 names on a secured loan, it has to be the same.
    Please if anyone can assist I would be grateful.
    Thanks
    Paul

    Reply
  10. Anon says

    March 17, 2020 at 12:33 pm

    i have a recent default against me from a bank which I had an idle account with and they closed it without warning me. I have raised the issue with the FOC and they are investigating. my wife and I had perfect credit up until this and we were just about to remortgage. I had a mortgage offer from halifax until i told them about this and they pulled it. I know there are companies out there specialise in bad credit mortgages but so far any that I have contacted seem to be cowboys and want to take advantage of the situation and charge 3-5k to handle the application with no guarantee of a yes. Can you point me in the right direction or any reputable brokers might be able to help me or give me any pointers on what i should do please.

    thanks very much

    Reply
    • Sara (Debt Camel) says

      March 17, 2020 at 12:51 pm

      My problem is that I have no idea whether a bad credit broker is any good or not… so I simply can’t recommend one.

      But if you are remortgaging, where is the rush? Why not just wait a while for the FOS case to go through and get a mortgage at a good rate with no up front fees?

      Reply
  11. Davide Bardetti says

    March 23, 2020 at 10:44 am

    Good Morning,

    i’m about to apply for my first mortgage and i’m honestly a little bit concerned.
    Around the web there are extremely a lot of offers and its easy to fall in a disappointment, What i’m trying to say is that some offers you pay same monthly mortgage included of all fees but in the end you re-PAY MUCH MORE than others because of different lenders.(interest included)

    My question is: Why on a repayment mortgage of £200,000 @ 20 years, for example, there is a gap of re-payment between all the lenders of 50-70k or more ?

    Do Lenders think people are so naive ?

    Reply
    • Sara (Debt Camel) says

      March 23, 2020 at 12:22 pm

      This is one of the reasons I always suggest people talk to a good broker.

      Reply
  12. Paul says

    May 31, 2020 at 2:20 pm

    Hi Sara, my wife has been made redundant and we’ll be coming to the end of our two-year fixed deal in three months’ time. I have continued to keep up with the payments (no defaults or mortgage holidays). Can my current lender offer me a new fixed deal given the change of circumstances and without having to make a new application? Thank you.

    Reply
    • Sara (Debt Camel) says

      May 31, 2020 at 2:45 pm

      Yes they can – but they may not.

      It’s good if you can avoid payment holidays in this situation but how are you managing without your wife’s income? Will she be able to find another job easily?

      Reply
  13. Sophia says

    June 24, 2020 at 7:55 am

    Hi Sara,

    My 2 year fixed comes to an end soon and I was wondering the advantages of fixing a 2 year v 3 year deal? I have a low LTV and not long left to go but I’m not sure which is best at this point. In the past I have always fixed for 2 years. Both have zero fees. The 2 year is at 1.44% while the 3 year is 1.49%….any advice of what way to swing?

    Many thanks for your time,

    Sophia

    Reply
    • Sara (Debt Camel) says

      June 24, 2020 at 9:01 am

      What is the chance of you wanting to move before 3 years is up? How long left to go on the mortgage?

      Reply
      • Sophia says

        July 1, 2020 at 7:42 am

        I probably wont move – unless I win the lottery….there is a £1 difference in monthly repayments between the two and I have just over 10 years left on my mortgage. I checked the deal that I was offered 2 years ago and they were 1.89% for 2 years and 1.94 for 3 years…..so will they drop again due to this whole current situation in the country or is it best to just fix and be secure? I dont really have people to speak to and ask, so it’s quite hard to know what way to swing…of course no one knows the future either! I should also say that I overpay every month to reduce the mortgage term and will continue to do so.

        Reply
    • Sara (Debt Camel) says

      July 1, 2020 at 7:59 am

      Well this isn’t “advice” because I am not a mortgage broker and I don’t know what deals are available – but the general suggestion at the moment is to fix for as long as possible, if you don’t intend to move.

      Reply
      • Sophia says

        July 1, 2020 at 8:24 am

        Thanks Sara that’s helpful. :)

        Reply
  14. Annelyn says

    July 6, 2020 at 12:05 pm

    I find this forum will help me lot. My 2 years fix rate will come to end this October with Nationwide. My question is, will the bank send me letter to offer me new fix rate deal or should give them a ring?
    If I phone them, what normally they asked? Are they going deep about my current job?

    Reply
    • Sara (Debt Camel) says

      July 6, 2020 at 7:16 pm

      They will usually write to you. You can contact them and ask, but I suggest leaving it for a month or two.
      Each lender differs on what you may be asked. As you already have a mortgage it may not be much.

      Reply
  15. Wendy says

    July 13, 2020 at 4:58 pm

    Hi do you have to have a certain amount of years remaining on your mortgage To start a new rate? I am Santander with 8 years left. I have offers to fix 2,3,5,7 years but if I take 5 will I be offered a new deal next time or will I be to close to the end of my mortgage to take out a new deal for the las5 3 years. Not sure the best way to go about this, or, do I fix then go to variable rate for the last 3 years. So confusing

    Reply
    • Sara (Debt Camel) says

      July 13, 2020 at 7:21 pm

      It’s up to the lender and may depend on how much you owe. It isn’t going to be possible to be sure what you could get offered in 5 years time.

      Is the 7 year rate a lot worse than the 5 year rate?

      Reply
  16. ANdy says

    July 15, 2020 at 9:31 am

    Hi Sara,
    My partner currently has a mortgage on a house which I live in and contribute towards the bills.
    We are looking at adding my to the mortgage she currently has.
    My credit score/record is poor from a few expensive borrowings over the past years, although tidying it up as time passes. Will i be able to be added or will i be outright refused? Or does the fact she has the mortgage already open with her near perfect record contribute to the likelihood of me being added along side?

    Any advice, information would be great.

    Thanks

    Reply
    • Sara (Debt Camel) says

      July 15, 2020 at 9:44 am

      You will find it difficult to get a joint mortgage at an OK rate if your credit record is bad.

      This is an application for a new mortgage, the fact she already has a mortgage isn’t relevant.

      You have defaults? Have these all be repaid?
      You said this was high cost borrowing – what sort of credit was this? It can somethim,es be possible to get negative marks removed from your credit record if you win an affordability complaint?

      Reply
      • Andy says

        July 15, 2020 at 10:06 pm

        Currently working on clearing my debts on my record.
        A few high interest credit loans are just being paid off.
        I don’t have any defaults on my record Or ccc etc… Just naff borrowing over time!
        She spoke with nationwide and asked if I could be added to the current term, it was never mentioned it would be a fresh application for a mortgage. As it’s within the first 5 years I can be added, subject to paperwork and a meeting etc.
        Is that 100% it will be a fresh application even if it keeps the same agreement ?

        Reply
        • Sara (Debt Camel) says

          July 15, 2020 at 10:10 pm

          It’s up to each lender – most treat it as a new mortgage application but it’s up to each lender what checks they want to do.

          Reply
  17. Mo says

    August 5, 2020 at 9:02 pm

    Hi Sara,

    I have a house on mortgage with my brother. Unfortunately, due to the current pandemic we are now both self employed and have a reduced income. Our mortgage deal ends next year, what happens to our mortgage? Can we still pay the full monthly payments using our savings or remortgage?
    Im worried that if we try to remortgage we will not be able to borrow enough. What would our next option be as we do not want to sell the house…

    Reply
    • Sara (Debt Camel) says

      August 5, 2020 at 9:15 pm

      So your mortgage is ending? Or the fixed rate?

      Reply
    • Mo says

      August 9, 2020 at 6:18 pm

      Hi, the fixed rate ends next year

      Reply
    • Sara (Debt Camel) says

      August 9, 2020 at 8:24 pm

      As the article above explains, when your fixed rate ends. you still have a mortgage , it will just be at the variable rate your lender has. You could ask them what thet rate is at the moment?

      Reply
  18. Denise Woulfe says

    August 20, 2020 at 11:27 pm

    Hi Sara,
    I am in 1.5 Year into a 3year fixed term mortgage. I see my lender-bank is offering a far better rate at a 2, 3 and 5 year fixed. I know that I will have to pay breakage costs but think that it will still pay me to change to the lower rate fixed term.
    Q1 Would this be a wise move if I am not planning to sell?
    Q2 Would my Mortgage protection policy (that’s with the lender-bank) need to be changed (even if I am continuing with the term & value of mortgage)
    Thanks in advance

    Reply
    • Sara (Debt Camel) says

      August 21, 2020 at 9:06 am

      Q1 – I can’t give this sort of financial advice. I suggest you talk to your lender and make sure you understand all the fees you might be charged for the new mortgage and for ending the current one early. You could also talk to a mortgage broker – there may be better rates on offer from other lenders. If you do want to change, it may be best to fix for as long as you are sure you won’t need to move.
      Q2 At the moment you are just changing the fixed rate, the underlying mortgage remains the same. You should talk to the lender to be sure, but it seems likely your current policy could continue.

      Reply
  19. Amy says

    September 2, 2020 at 11:56 pm

    I am coming to the end of a 5 year fixed term mortgage. I have 50,000 left to pay. My bank offered online services to arrange another fixed term but when I went through it Said my mortgage would have 59,000 to pay (adding) £9000. I am not remortgaging so why would that change ?

    Reply
    • Sara (Debt Camel) says

      September 3, 2020 at 7:10 am

      I don’t know, you need to ask them urgently.

      Reply
  20. Julie says

    September 3, 2020 at 2:46 pm

    My first and current mortgage deal is coming to an end as of Oct 31st and I called for some adviceto which I was told online deals are available should I wish to switch to a new deal. If I do not take up a new deal I will go onto their current SMR which at the moment less than what im currently paying (3.64) if I dont do anything I will be on the (3.59) but if im right this is a risk because that rate could change?
    Basically I write to ask as ive never switched, stayed or remortgaged until now. Should I just choose a good fixed 3-5 year rather than risk the current bit good SMR? concidering im managing those payments for now I dont plan to move for a long time definitely not soon. I also if things progress and stay serious with my current partner like to add him to the mortgage but I understand his credit rating could affect the next deal we are offered and may just wait until next time to proceed with this.
    P.s I need a whole nee boiler system and wonder do I try remortgage at this early stage or sort out a new morrgage fixed deal, then if and when I can borrow/ save or get a new boiler on finance or using scotwest should I just do one thing at a time?
    Thanks
    Julie

    Reply
    • Sara (Debt Camel) says

      September 3, 2020 at 3:23 pm

      have you asked what fixed rates are available? how much equity do you have?

      Reply
      • Julie says

        September 4, 2020 at 9:31 am

        The bank I currently have my mortgage with told me to call to discuss and when I did they said at this time the deals are online and essentially its up to me to choose. The equity i’m unsure exactly as I read that depends on the current value of the house as well as what i’ve paid into it? Is my house worth what I bought it for or the current value and how do I find that out now? Without and evaluation fee? Ive had my home and first mortgage for 2 years now and paid 5% deposit.
        The current deals my current mortgage provider are offering do seem to be decent at the moment. Not doing anything and allowing my arrangement to default to SMR at their current rate looks decent also but of course not fixing could be a risk I take. Whats another few years fixed while the rates are good In the larger scheme of things so early in my borrowing…

        Reply
        • Sara (Debt Camel) says

          September 4, 2020 at 11:13 am

          I think it might help to talk to a mortgage broker about this? Not fixing is a risk that rate waould later go up but it can be difficult to decide between different fix lengths especially if there are different interest rates or any fees being charged. A broker can help you decide between these.

          The good news is that as the rate you would change to is good, there is no urgent pressure to sort this out immediately. But it is still worthwhile doing.

          Reply
          • Julie says

            September 4, 2020 at 1:32 pm

            Thanks a lot for your replies and feedback. I had a broker at the beginning of my house hunt and seeking a mortgage for the first time so indeed im aure a wee phonecall to them will do no harm again. Its easy to put a lot of pressure on myself and look for reassurance because its a big responsibility and decision but fortunately the rates are Ok for now
            Thanks again

  21. Hannah says

    November 16, 2020 at 2:50 pm

    I already have a help to buy mortgage with an ex partner from Halifax in 2017 but my credit score worsened in 2019 when I defaulted most of my credits totaling 30k+
    I am trying to negotiate F&F with one of the creditors PRA Group who bought my Halifax and Barclays Credits cards worth 12K but they say it will affect me if I wanted a Mortgage.
    I am keen to start investing in buy to let properties and to help me pay off more of my debts. Family members are interested in investing with me for the deposit etc

    What is my best option here.

    Thanks

    Reply
    • Sara (Debt Camel) says

      November 16, 2020 at 6:05 pm

      What % F&F have PRA said they would accept? It would be unusual for this to be low for recent defaults.

      I am keen to start investing in buy to let properties and to help me pay off more of my debts.
      This sounds unlikely to work. BTLs need a large deposit these days and for you to have a good credit record, With recent defaults on your credit record, even if these are settled in full, this seems unlikely.

      Reply
  22. lynne Byrne says

    February 5, 2021 at 7:54 am

    I have been on an interest only mortgage for several years now and since taking out the mortgage,ran int debt problems.
    I am making small payments to my creditors and have defaults however have not missed a single mortgage payment.
    My lender had me on the svr for a long time and I did not realise I could do something about it.When I did realise,I contacted the lender and they initially refused to put me on a better deal until I contacted the ceo of the company (Santander)who agreed to do this.However my deal is still a lot worse than it should be.Is there anything I can do to obtain a better deal without changing provider?Are they legally allowed to keep me on a poor deal?

    Reply
    • Weatherman says

      February 5, 2021 at 11:25 am

      Hi Lynne
      One thing to think about is whether you have a plan to repay the mortgage at the end of the term, especially if you’ve had debt problems. If you’re not sure, or think you’ll find it difficult, don’t put your head in the sand! There are suggestions about what to do here: https://www.moneysavingexpert.com/news/2018/01/interest-only-mortgage-timebomb-act-now-/#actnow

      Reply
      • Sara (Debt Camel) says

        February 5, 2021 at 1:32 pm

        I too think you need a plan to deal with your IO mortgage. Unless you have, no other lender will consider a remortgage.

        How bad is the Santander deal you are on? Do you have evidence that there were better deals on offer for people with IO mortgages?

        Reply
  23. lynne Byrne says

    February 6, 2021 at 6:59 am

    I’m unlikely to be able to pay the mortgage off which ends in 11 years.I am currently trying to build up a savings bank and keep my credit file clean (all defaults should be gone by end of this year/early next year) so that when I sell I can use any equity plus savings and only if I need to,get a very small mortgage.
    I will look at the link you sent me to see if I can do anything different.

    Regarding my deal,I was put on a two year fixed rate which ends early 2022.Payments are £932 a month and the interest rate is 3.29%.I did look around at the time and noticed that it was a poor deal compared to other interest only mortgages.I raised this with Santander on the phone but they said that as I was in payment arrangements with creditors,I could not have a better deal.
    Can I challenge this either now or on renewal of my deal next year?

    Reply
    • Sara (Debt Camel) says

      February 6, 2021 at 7:15 am

      How much equity do you have?
      The other interest only mortgages at a better rate, were they from Santander or other lenders?

      Have you looked at overpaying the mortgage instead of building up savings outside? This increases your equity and reduces your mortgage payments – so it is equivalent to getting an interest rate of 3.29% after tax on your savings, much more than you can get elsewhere.
      How does £929 a month compare to the cost of renting a suitable place?
      Is your house the right size and in the right place for you?

      I think it would be helpful to talk to a debt adviser about your whole situation – they can’t give you financial advice on what mortgage to choose, but they can help you look at the full picture. I suggest yiur local Citizens Advice.

      Reply
  24. lynne says

    February 7, 2021 at 8:44 am

    Hi Sarah,
    the other deals were from Santander themselves, although I did notice some from other providers.
    I was also told that should i want to downsize and reduce my mortgage payments, then although my mortgage is classed as portable,.I wouldn’t be able to do it because of my credit file.This I found extremely unfair because if I can pay my current mortgage then why shouldn’t I be able to pay a lower amount!The answer can only be that they are making a huge profit out of me and want to hold onto it!

    Regarding overpaying;I have been toying with this, but at the moment think I am best holding onto my savings in case of a downturn at some point or until I have built them up more.I am self employed and although I have a profession,nothing is certain,especially just now,
    I would much prefer to have a better deal at the moment.if I can achieve this and hang onto my savings
    The equity in my house will be around £100,000.

    My house is in an ideal position to travel to various locations for my work and I am well settled here.I do intend to downsize at some point but that point is not here at the moment.I am just thinking forward in case things change.
    Is there a chance I can challenge the deal they have put me on?

    Reply
    • Sara (Debt Camel) says

      February 7, 2021 at 9:17 am

      If the other deals were from Santander for IO mortgages, then yes, you can challenge.

      I was also told that should i want to downsize and reduce my mortgage payments, then although my mortgage is classed as portable,.I wouldn’t be able to do it because of my credit file.
      That sounds unfair but if you don’t want to do this, it is an abstract problem, not relevant for you.

      You certainly need a good size emergency fund – as a single person with a mortgage you get little help from the benefits system. But wheh you have that, consider overpaying then?

      “Downsize” – any chance of getting a lodger if you have a spare room? When lockdowns end? It is a tax-free way of generating extra income, it doesn’t have to be permanent, just for a few years can make a big dent in that mortgage.

      Reply
  25. lynne says

    February 7, 2021 at 3:36 pm

    “I was also told that should i want to downsize and reduce my mortgage payments, then although my mortgage is classed as portable,.I wouldn’t be able to do it because of my credit file.”
    “That sounds unfair but if you don’t want to do this, it is an abstract problem, not relevant for you.”

    ….If I could downsize and found a suitable property then I would seriously consider it.
    In the light of it being unfair ,could I challenge this?

    Reply
    • Sara (Debt Camel) says

      February 7, 2021 at 3:49 pm

      Yes. You can say it is unfair as you would be reducing your mortgage and switching to a repayment mortgage. And you are not withdrawing equity so the risk for you and the lender is lower.

      Reply
      • lynne says

        February 7, 2021 at 4:54 pm

        Thank you for that advice Sarah.I will certainly pursue it by complaining through the lenders complaints procedure,escalating to the ceo if necessary and will go to the ombudsman if I get nowhere with it.

        I think I will pursue the unfairness of the mortgage rate of the product I am currently on first though and see how that goes, as if I can obtain a better deal without moving,that would maybe be best at this point in time.

        Reply
  26. Izzy says

    March 5, 2021 at 9:22 pm

    Our 5 year fix is coming to an end. We plan to move in the next 12 months after i receive some inheritance. Im in debt in addition. Are we better to go to the svr until I can off the debt and then move and then remortgage. Or should we remortgage but get a mortgage that can be used to move home? I.e. be able to change it.

    Is that even possible?

    Reply
    • Sara (Debt Camel) says

      March 5, 2021 at 9:24 pm

      I think you need to talk to a mortgage broker about your situation and what may be possible.

      Reply
  27. Yeza says

    May 14, 2021 at 6:20 pm

    Is it true that in the last 3 months of a fixed rate mortgage, you can exceed the 10% overpayment limit. It doesn’t right.
    Example: A fixed rate mortgage is coming to an end and in the last 3 months you take out another fixed term which starts when the current term expires. Will the bank allow you to make unlimited overpayments in that 3 onth period?

    Reply
    • Sara (Debt Camel) says

      May 14, 2021 at 8:12 pm

      Suppose you have 100,000 fixed rate that ends in August. You want to pay £10,000 a month off in each of the last three moneths, so your mortgage drops to 70,000. But this is way over the 10% allowed.

      What you should do is just wait until the 100,000 fix ends. At that point you are on a variable rate mortgage and can repay £30,000 immediately. Then you can can get a new fix for £70,000.

      Does that answer your query?

      Reply
  28. Yeza says

    May 15, 2021 at 5:26 pm

    Yes It answers my query. Thank you

    Reply
  29. Kenny says

    December 7, 2021 at 1:10 pm

    Hi, My 5 year fixed rate is ending in February when I will have exactly 2 years remaining on my mortgage. First Direct have sent me the letter with the available fixed rates, however when i called them to arrange a new 2 year fixed rate but they said that i was unable to take a 2 year fixed rate as i will only have 24 months remaining on my mortgage and according to their policy you must have at least 1 month remaining after your fixed rate ends !! I cant understand why this is the case, is this normal ? They said that the only way I could switch to the 2 year fixed rate is to apply to extend the mortgage term but then I have to go through all of the checks etc. This shouldn’t be a problem but I could end up getting hit for legal fees !! Do you think I am better to just pay the SVR for the remaining 2 years ?

    Reply
    • Sara (Debt Camel) says

      December 7, 2021 at 2:12 pm

      I haven’t heard of this “one month remaining” restriction before. I assume you were not warned about this When you took the current fix out.

      How large is your balance at the moment?
      What is FD’s current standard variable rate?

      Reply
  30. Jason says

    January 25, 2022 at 11:45 am

    My 5 year fixed is ending in 6 months. I am hoping to move to a more expensive property in the next 12-24 months. I have spare capital right now and have already maxed out my overpayment allowances. I would think the best thing for me to do would be to hold off on fixing again for now and see how moving house progresses. Would you agree? Also, should I consider paying off more of my existing mortgage when the fixed term ends? Or should I save this capital for a deposit on a larger mortgage when I move house?

    Reply
    • Sara (Debt Camel) says

      January 25, 2022 at 2:13 pm

      Your other option is to look for a new portable mortgage.

      What is your current lender’s SVR?

      Reply
      • Jason says

        January 25, 2022 at 3:00 pm

        Hi Sara, we’re with HSBC who’s SVR is currently 3.54%

        Reply
        • Sara (Debt Camel) says

          January 25, 2022 at 3:22 pm

          well that could be worse…
          I suggest it is probably worth having a chat to a broker about your options in another few months time.

          Reply
  31. Saira says

    February 13, 2022 at 5:12 am

    Hi, my fixed rate is ending in 7 months with Halifax. Myself and my husband took out the mortgage. To begin with we made £50 overpayment per month for about 6 months and then just made my usual payments. However for the last 11 months we have been making overpayments of £120.00 per month. We bought the property for £258.000 and it has gone up in value to around £360.000 we have never been in arrears or missed payments.
    Our problem is that since we took out the mortgage both our incomes have dropped significantly. I am worried and stressed because I do not want to be on a SVR rate. I can’t deal with the uncertainty and what if it goes up significantly and cannot afford to pay? I worry what if they don’t offer us a fixed rate or we can’t get mortgages with other lenders because of our low income? We haven’t informed Halifax of our drop in our income. We have only afforded to make overpayments because we have made many sacrifices. Furthermore are you able to say are there 10 year fixed rate or longer? And will be a good idea to get the house valued before my fixed rate comes to an end? Many many thanks.

    Reply
    • Sara (Debt Camel) says

      February 13, 2022 at 9:30 am

      you don’t have to inform your mortgage lender that your income has reduced – you haven’t broken any rul by not doing this.

      Do you have other debts as well as the motgage?

      Reply
      • Saira says

        February 13, 2022 at 3:35 pm

        I have £6,000 outstanding on my two credit cards. We are paying them off asap. They are on interest free scheme and we have until next year to pay them. My husband doesn’t have any debt.

        Reply
    • Sara (Debt Camel) says

      February 13, 2022 at 7:42 pm

      Well Halifax should offer you a new fixed rate, it may not be their best rate but they shouldn’t leave you a SVR.
      Other lenders however will consider how affordable the loan is., so you may struggle – it depends how much your income has dropped.

      Reply
      • Saira says

        February 13, 2022 at 8:24 pm

        Thank you so much Sara. You have put me at ease knowing that Halifax should offer us a fixed rate. I have been stressing thinking that they might want to do affordability checks again and might decide they don’t want to give us a mortgage? It’s reassuring knowing that we don’t have to say anything about our income drop. Once again many thanks.

        Reply
  32. Peter Vernon says

    March 1, 2022 at 8:37 pm

    Hi Sara
    Here is something for you to have a look into. My parents took out a Lifetime Mortgage at a rate of 5.6%. The amount owed rose to over £220000. We looked into this and helped them get a remortgaged Lifetime Mortgage with the same provideer at 2.55%. This has reduced the annual interest charge from over £12000 to just over£6000. My brother and sister are helping me pay this £6000 so the outstanding debt does not get any greater.
    My point is that my parents had no idea that they could remortgage their Lifetime Mortgage. I honestly believe that elderly people see the phrase Lifetime Mortgage and think just that….they cannot change it. Obviously it is not in the lender’s interest to publicise this. I just think you could look into this and save a lot of families money, not to mention the worries elderly people must have who see the large increases in their Lifetime Mortgage balances.

    Reply
    • Sara (Debt Camel) says

      March 2, 2022 at 10:40 am

      That is a useful point.

      Reply
  33. Lorraine h says

    September 22, 2022 at 2:13 pm

    Hi i have 3 years left on my fixed rate or a remortgage when that 3 years is up i would be still working but on a lower wage will this effect me fixing again? And should i still keep paying off my 10% every year like i have been or should i hold that money back to pay off at the end of this fixed term before i start a new one? Thank u for ur time

    Reply
    • Sara (Debt Camel) says

      September 22, 2022 at 2:48 pm

      i would be still working but on a lower wage will this effect me fixing again?
      If you get a new fix from your current lender, many won’t review the affordability or your credit record. If you go to a different lender, there would be a full review of how affordable the mortgage is for you on yourt wage at that time.

      should i still keep paying off my 10% every year like i have been or should i hold that money back to pay off at the end of this fixed term before i start a new one?
      There is no advantage in nor paying off as much as you can now but keeping that back and paying it in a lump sum. You will save more interest by repaying it as you go, not waiting to the end.

      If you are paying off 10% of the mortgage each year, that will significantly reduce your mortgage by the time you want a new fix. so the lower mortgage will partly offset your lower wages.

      Reply
      • Lorraine h says

        September 22, 2022 at 6:22 pm

        Ok thank u so much i know i still have 3 years but i like to try think of the future a bit

        Reply
        • Sara (Debt Camel) says

          September 22, 2022 at 6:25 pm

          that is a sensible approach!

          Reply
  34. Stacey W says

    October 30, 2022 at 10:08 pm

    My fixed term is coming to an end in Dec next year after 3YFT.

    I was made redundant in May and have been unemployed since then. I have been offered a new job for 12 months with two options 1) on a fixed term contract (PAYE) or 2) Contract with Umbrella Company.

    Will this affect my remortgage, refix come 6 months time? And is there a preference for either of the employment options?

    I am potentially looking to move and purchase a property in a year or so following some inheritance I am due.

    Reply
    • Sara (Debt Camel) says

      October 31, 2022 at 10:01 am

      I think a mortgage broker could give you a clearer steer on the difference between those options. Also you need to think about whether it’s sensible to refix in 6 months if you intend to move in a year or so.

      Reply
  35. Elite says

    November 13, 2022 at 10:50 am

    Hi,

    I have viewed a property with help to buy and paid the small amount of £500 to reserve the property.
    I have a an offer from the bank with 5.43% on fixed term for five years and then variables rates predicted as 6.49% depends on the market.
    *Is this the right time to buy a property.
    *The fixed rate after five years change to variable rate,how does this work would I be fixed for another five years and is fixed or variable rate better.
    *example if the monthly payment is £1500 can I pay extra £500 for the five years fixed term, would that ease the loan or interest amount.

    Reply
    • Sara (Debt Camel) says

      November 13, 2022 at 11:48 am

      Is this the right time to buy a property.
      I can’t say. Are you sure This is the right house for you for the next 5 years at least? New build houses always drop in value as soon as they are sold. If the housing market falls, new buys may be more badly hit than other houses. But f you will be in the house for a very long time that doesn’t matter so much.

      The fixed rate after five years change to variable rate,how does this work would I be fixed for another five years and is fixed or variable rate better.
      When a fix ends you can get another fix as the article above explains. Fixed is better if rates go up or you are happy to pay for security. Fixing if rates are likely to drop will cost money.

      if the monthly payment is £1500 can I pay extra £500 for the five years fixed term, would that ease the loan or interest amount.
      Most fixed rates you can overpay b6 up to 10% of the mortgage amount in a year but you need to ask what will apply to this particular mortgage.
      I& you overpay it reduces the interest you will pay over th3 life of the mortgage, it may end sooner and, with HTB, you are in a better place to remortgage to cover the government’s share after 5 years.

      Reply
  36. Sharon Mulligan says

    January 2, 2023 at 9:50 pm

    I have fixed on my mortgage it ends in October this year wee owe 75.000 back to mortgage people could wee remortgage the place again

    Reply
    • Sara (Debt Camel) says

      January 3, 2023 at 3:41 am

      Is this a repayment mortgage with a tax that is ending? Or an interest only mortgage and the mortgage term is ending?

      Reply
  37. sharon m says

    January 8, 2023 at 2:13 pm

    our fixed rate comes to are end inoctober this year could I remortage my home again or something else just asking would be very gratefully for any help with this please thank you

    Reply
    • Sara (Debt Camel) says

      January 8, 2023 at 3:01 pm

      do you just want a new fix? or do you want to change something about the mortgage – the term, the amount etc?
      what is your credit record like and do you have a lot of other debt?

      Reply
  38. sharon says

    August 8, 2023 at 8:13 pm

    my mortgage comes to are end this October fixed rate wee are on been trying to get some thing started out but seems to getting nowhere with it or do I just sell up and start again ather 25 years been in my house

    Reply
    • Sara (Debt Camel) says

      August 8, 2023 at 9:41 pm

      is this a repayment mortgage? or interest only?

      Reply
  39. Sophia says

    August 13, 2024 at 4:45 pm

    Hiya Sara, I’ve got a fixed rate mortgage ending soon (August 2025 but can apply for re-mortgage from February onwards). Since getting this mortgage I have racked up about £3000 worth of debt on 2 credit cards. I’m wondering how this will impact a re-mortgage? I can pay just over minimum payments monthly but obviously with interest I’m not sure I’ll be making much of a dent. Should I consider a balance transfer card with no interest or won’t this look very good on my application next year? Thanks

    Reply
    • Sara (Debt Camel) says

      August 13, 2024 at 9:52 pm

      It is normally a good idea to avoid any credit applications in the few months before a mortgage application. But I can’t see why you shouldnt try to get a 0% balance transfer now. If you do, the minimum payments will drop… try to carry on making payments that are larger then the ones you are currently making, so the debt really starts to drop.

      who is your current mortgage lender?

      Reply
      • Sophia says

        August 13, 2024 at 10:00 pm

        I’m with NatWest and have got a repayment mortgage at a rate of 4.8%.
        I shall have a look around for balance transfer cards tomorrow.

        Reply

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