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Is your fixed rate mortgage due to end? What do you do now?

With bank base rates having already increased to 5.25% in August and quite possibly set to increase again this week, the historic low of 0.1% in March 2020 increasingly feels like a distant memory for borrowers.


Signs that inflation is at last being brought under control and the need for further rate rises diminishes will be good news for many. However, This brings little comfort to the hundreds of thousands of homeowners whose fixed rate mortgage deals are ending and realising that they face an increase in their payments. This may be a significant one, as the hikes in the cost of borrowing mean that current deals are much more expensive than they had been before.


If you’re in this situation, there are a few things worth remembering that can help you to get the best deal and keep the increase in costs to a minimum.


  • Your existing lender will almost always offer you a replacement deal so you don’t have to go on to their more expensive standard variable rate. These can be on really good terms and represent great value, but this isn’t always the case – some high street lenders offer replacement terms that simply don’t compete with deals available in the market

  • An advantage of going with your existing lender is you won’t be subject to the same checks and scrutiny that you will when applying with a new provider


  • Maximize your eligibility for new products ahead of applying by:

  1. Delaying making purchases on credit, especially large ones, until after you’ve got your new mortgage, including entering “buy now, pay later” arrangements

  2. Avoid ‘hard’ credit searches that can put off prospective lenders by not applying for credit that you may end up not taking up

  3. Keep on top of your mortgage and other credit repayments – any missed payments are a big disincentive to a provider to offer you a mortgage

…and most importantly of all – take advice!



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