Once your fixed-rate term is finished, you will most likely go onto your lender’s standard variable rate (SVR). This is the interest rate they use as their own base line. (SVR isn’t to be confused with other variable-rate mortgages, like trackers which sit a fixed distance from the Bank of England’s base rate.) Your lender can increase or decrease their SVR at any time – so payments go up and down often.
The end of your fixed term is a great opportunity to shop around. SVRs are not designed to be the cheapest deal out there.
At the moment, some fixed-rate products beat SVRs by a fair margin. In fact, some are less than half! Many people could be saving £1000s over the next couple of years by moving into a new, fixed-rate mortgage to take advantage of the strong competition amongst lenders.
This doesn’t mean it’s always a good idea to jump ship. Some SVR mortgages don’t have early repayment fees, for example. But it is always a great time to consider your options!
So, let’s talk about your own mortgage, and we’ll make sure you have got the best deal you can.