What Happens When Your Fixed Rate Mortgage Ends?

What happens when your fixed rate mortgage comes to the end of its term, depends largely upon what you have agreed with your mortgage provider. To find out exactly what will happen at the end of your fixed rate term, we strongly advise you to speak to a representative from your bank or building society.
However, in general, at the end of a fixed rate term, you will move onto your mortgage provider’s standard variable rate. This will probably happen automatically, you won’t need to do anything.
Don’t crack open the champagne, yet.
Your mortgage provider’s standard variable rate is not the same as the Bank of England base rate. It is, unfortunately, always higher. Only tracker mortgages have the advantage of benefiting from the current financial doom and gloom. However, depending on what you had fixed your mortgage rate at will determine whether or not you are going to gain or lose out as a result of this transition.
On the plus side, you will now be able to look for a more competitive mortgage package. Probably. You’ll need to check the small print of your mortgage agreement, as you may be tied in to a particular time period on the standard variable rate. Once again, make an appointment with a representative from your bank or building society.