Responsive, generally helpful and clear explanations given. 

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What happens when that period ends? 

Once you come off your fixed rate, you will be put onto a variable rate. The most common types of variable rates are known as Standard Variable Rates (SVR). This is where you will move onto an interest rate that is set by the lender and can go up and down at their discretion.  

Most variable rates do, however, tend to move in line with the Bank Rate set by the Bank of England.  

So what should I do?  

You don’t have to do anything if you’re happy to pay the higher SVR rate but, if your situation permits, you could remortgage to a new deal.  

If you choose the latter, then you need to clarify the costs that will be associated with remortgaging and notify your lender to question them about better rates.  

Should your property value have increased since you took out your original mortgage, you will likely be eligible for the lower rates.  

And if I don’t? 
 
An SVR can be beneficial if you want to continue to make mortgage overpayments, as SVRs don’t have any early repayment charges.  

If you have a mortgage that’s under £50,000, it’s also probably not worth remortgaging as the fees involved would likely be more than the savings you’ll make.  

And if your circumstances have changed where you are now on a lower income, it’s likely that a lender won’t accept your application.  

For advice on remortgaging and moving to a new fixed rate mortgage, speak to one of our expert advisers who will be able to help you with the next steps.