The Question
I’ve reached the end of my five-year mortgage which was a fixed rate. It looks like I will be forced to pay a much higher rate now that my deal has expired – it’s 6.7%. Someone mentioned I could remortgage but I’m not sure if this is a good idea as interest rates are much higher now than they were when I bought my property in 2020. Is remortgaging a good idea and are there any other options?
Darren’s Answer
Unfortunately, there are a lot of people in your position where rates have increased since your original mortgage deal. When your current fixed rate ends, the mortgage will revert to your lender’s standard variable rate (SVR). Generally, this is a holding rate and not something you want to be on for an extended period of time as SVR rates will be higher than those available on the market. This may be the 6.7% you are referring to as this seems high given the current averages across the market*, (although I don’t know your specific circumstances). You have two main options:
1. Remortgage to a new lender
A mortgage broker can search the market based on your outstanding mortgage balance and property value to see what rates are available to you. This would effectively be a new mortgage application. However, your broker can ensure free legal costs and a free valuation with certain lenders. Some lenders also offer cashback deals for remortgage cases. There will be a credit-scored application and a full income / expenditure assessment. It’s also likely to include a valuation, which may help with the increases you mentioned.
2. Switch to a new rate with your current lender
This is classed as a rate switch or product transfer. The benefits of this are that there is almost never a credit score or need to provide proof of income as the lender has already assumed the risk with your current mortgage. There is also no need to carry out a valuation as the lender will have their own internal valuation of the property, which can mean your loan-to-value (LTV) is positively impacted by the lender’s valuation rather than market value. This could result in a better rate as this may be a better LTV bracket. Other potential options for securing a lower rate might be extending your term or making an overpayment, as the rate will depend on your LTV. My best advice is always to speak to a broker, who can provide an assessment of your options and give you the best rates for your circumstances. *5-year fixed average rate 4.56% as at 17 September 2025, figures from Podium
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