Learn simple, actionable steps to stop your mortgage jumping to an expensive standard rate, estimate realistic savings and use online brokers to remortgage efficiently.
Many homeowners are about to see their fixed-rate mortgage deals end — and for around 1.8 million of them, that can mean a nasty jump in monthly payments if they don’t act. Left unattended, accounts typically roll onto a lender’s standard or default rate, which is often much more expensive.
Why acting now pays off
– The obvious pattern: start early and you cut the chance of a price shock. A typical swap from a fixed deal near 4% to a standard variable rate around 7% can add up. Over time that difference can amount to roughly £2,000 for every £100,000 borrowed if you move to a better product instead of staying put.
– Digital brokers make shopping faster. They speed document handling, run quick eligibility checks, and can deliver an agreement in principle within 24–48 hours once paperwork is in. That speed is especially useful if your fixed term is about to expire.
Quick checklist — what to do first (about an hour)
1. Find the end date. Check your mortgage statement or online account for the exact expiry date and the rate your lender will apply afterward.
2. Note any early-repayment charges. These affect whether switching will actually save you money.
3. Do the maths. Use a mortgage calculator with your remaining balance and term to compare current payments with what you’d pay on the lender’s fallback rate and on candidate deals.
4. Gather documents. Have your mortgage statement, payslips, recent bank statements and ID ready — these speed up any application.
How big an impact could this be?
If your fixed rate ends and you move onto a standard rate, monthly payments can rise materially — in some cases by as much as £300 a month, depending on balance and the expired deal. Running the numbers early tells you whether switching is urgent or whether you can shop around more leisurely.
Estimating savings and timing
– Model total cost, not just monthly payments. Include arrangement fees, valuation or legal costs and any early repayment charges in your comparison.
– Start early. Lenders and brokers need time for searches, valuations and paperwork; beginning the process gives you the best chance to lock a competitive rate before your fixed term finishes.
– If the numbers confuse you or you’re close to a break-even point, speak with a regulated mortgage adviser. They’ll clarify fees, confirm timelines for locking a rate and highlight anything you might have missed.
When online brokers help (and when they don’t)
– Strengths: Digital brokers are terrific for straightforward, salaried applicants who want convenience and a broad market sweep. Many scan thousands of products from more than 90 lenders, combine automated checks with adviser oversight, and reduce paperwork with secure uploads.
– Limitations: Complex situations — self-employed income, irregular earnings, buy-to-let portfolios or recent credit problems — often still need a specialist’s eye. Automated tools can flag suitable products, but nuanced underwriting or bespoke advice usually requires human input.
Practical tips for using a digital broker
– Confirm regulatory status. Make sure the platform is authorised by the Financial Conduct Authority and provides clear information about whether it gives full regulated advice or only product comparisons.
– Understand fees and commissions. If a service is free at the point of use because lenders pay the broker, ask how that’s disclosed and whether any commission affects the recommendation.
– Prepare for credit checks. A formal decision in principle tends to trigger a hard credit search; if you’re close to lending thresholds, ask whether a soft-search option is available first.
– Protect your data. Use platforms that offer secure accounts, two-factor authentication and clear statements about how your information is handled.
What firms should do
– Keep clear governance and audit trails. Document decision routes, record human reviews for borderline cases and maintain accessible records of communications and rate quotes.
– Escalate complex files. Build straightforward escalation paths so cases that don’t fit automated criteria get timely human attention.
Concrete next steps
1. Confirm your mortgage expiry date and the lender’s post-deal rate.
2. Run a side-by-side comparison including fees and any early-repayment charges.
3. If switching looks beneficial, gather documents and get an agreement in principle from a broker or lender.
4. Book valuations and other surveys early to avoid delaying the completion.
5. If your situation is complex, contact a regulated, specialist adviser rather than relying solely on automated tools.
Who really needs to act
Anyone nearing the end of a fixed or discounted deal should pay attention — especially people with tight budgets or little savings buffer. A short, focused review now can prevent being moved onto a much more expensive rate and save significant money over the life of the loan. A one-hour check-up and a couple of quick comparisons can protect you from a painful payment increase and give you time to lock a better deal. If in doubt, get regulated advice — it’s often worth the small cost to avoid a much larger one down the road.
