Understanding Maturing Rates: What You Need to Know

As we approach the end of 2025, many homeowners will see their fixed-rate mortgages come to an end. UK Finance’s Household Finance Review notes that although more deals are coming to the end of their term, many borrowers haven’t yet taken action to refinance. Some expect interest rate cuts and are holding off, while others simply feel confused about their options.

If your deal is coming to an end, it’s important to understand what happens next and how to make the best choice for your household finances.

What happens when a mortgage matures?

When your fixed-rate period finishes, your loan usually moves automatically onto your lender’s Standard Variable Rate (SVR). This can be significantly higher than your previous rate, meaning your monthly repayments could rise. Remortgaging before that happens allows you to secure a new deal and avoid unnecessary costs

Common Misconceptions

• “It’s only worth it if I move lender.” Not true – you can often get a better deal by staying with your existing lender, known as a “product transfer”.

• “Remortgaging is complicated.” While it may sound daunting, the process is usually straightforward. With the right advice, most applications are no more difficult than your original mortgage.

• “I should wait for rates to drop.” Trying to time the market is risky. If rates fall, you may be able to secure a cheap er deal later – but in the meantime, being on an SVR could cost you more.

• “I’ll just wait until my mortgage ends.” Avoid this mistake! Get in touch 6 months before your deal ends to make sure you’re prepared.

Making the most of your options

With household savings on the rise and tax-free ISA limits no longer under review, some borrowers may be tempt ed to keep spare cash aside rather than reduce their mortgage. Both approaches can make sense but weighing up the guaranteed benefit of lower mortgage payments against potential savings returns is key.

Don’t wait until your deal expires to explore your choices. By getting in touch and understanding the myths, you can take control of your repayments and avoid unwelcome surprises

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