# When your fixed-rate mortgage ends: switching, timing and the Mortgage Charter

> A fixed-rate mortgage deal does not last for the whole loan. This guide explains what happens when the fixed period finishes, how far ahead a new…

- URL: https://centiview.com/uk-money/what-happens-when-your-fixed-rate-mortgage-ends
- Published: 2026-10-14T19:37:00.000Z
- Figures checked: 2026-10-14
- Edited by David A
- Topic: Mortgages (UK)
- Publisher: Centiview (Persie Ltd, London)
- General information only, not financial advice

A fixed-rate mortgage deal does not last for the whole loan. This guide explains what happens when the fixed period finishes, how far ahead a new deal can be arranged, and what the Mortgage Charter commits lenders to.

## What happens when a fixed rate ends

A fixed-rate mortgage holds your interest rate steady for an agreed period, often two or five years. When that period ends, the loan itself carries on, but the rate changes. Citizens Advice explains that if you are not moved onto a new fixed deal, you move to a variable rate contract, where your repayments rise if interest rates go up, and not every lender lowers its rate when interest rates fall. Many lenders call this their standard variable rate. Because this rate is set by the lender rather than agreed for a fixed term, the monthly payment can change without you having done anything, which is why the end date of a deal is worth knowing well in advance.

Most people have two broad routes. One is a product transfer, which means taking a new deal with your existing lender, usually with little paperwork. The other is a remortgage, which means taking out a new mortgage with a different lender to repay the old one, normally involving a fresh application and checks. The Mortgage Charter, a set of commitments agreed between the government, the Financial Conduct Authority and lenders, mainly concerns the first route. Leaving a deal before it ends can also bring an early repayment charge, which Citizens Advice describes as a possible redemption fee, so the date matters when moving between lenders.

## What the Mortgage Charter says

The Charter was first agreed in June 2023, and GOV.UK published an updated version on 26 March 2026. Its commitments cover customers who are up to date with their payments. They can switch to a new deal at the end of their fixed rate without another affordability check, provided they are not borrowing more or changing the repayment type or term. GOV.UK states this applies to 97 per cent of the market. A permanent move to interest-only, or extending a term beyond expected retirement age, does still need an affordability check. Lenders have also agreed to give well-timed information so customers can plan ahead, although the page does not set out a specific reminder date.

On timing, customers nearing the end of a fixed rate can lock in a new deal up to six months ahead. GOV.UK says the rate must be finalised two weeks (14 days) before the new term starts, and customers can ask for a better like-for-like deal from their lender until the new term begins, if one is available. Six months is the stated maximum, so how far ahead a particular lender will offer a deal is something to ask that lender. The signatories represent about 90 per cent of the mortgage market, which means some lenders may not have signed, and the commitments do not apply to buy-to-let mortgages. It is therefore worth checking whether your own lender is a signatory.

- Contacting your lender for help does not affect your credit file or score under the Charter.
- Up-to-date customers can switch to interest-only payments for six months, or extend the term, and can revert to the original term within six months by contacting the lender.
- Lenders will offer tailored support to anyone struggling, which may include term extension, interest-only, payment deferral or part interest-part repayment.

> **Key numbers** Lock in up to 6 months ahead. Rate finalised 14 days before the new term starts. Charter signatories cover about 90 per cent of the market. Buy-to-let is excluded. Source: GOV.UK Mortgage Charter, published 26 March 2026, checked 14 October 2026.

## A worked example

The figures here are illustrative only and are not real rates. Suppose someone has £150,000 left to pay and, to keep the arithmetic simple, assume they pay interest only. At an illustrative fixed rate of 4.5 per cent, annual interest is £150,000 x 0.045 = £6,750, or £562.50 a month. If the deal ended and the loan moved to an illustrative variable rate of 7.5 per cent, annual interest would be £150,000 x 0.075 = £11,250, or £937.50 a month. The difference is £4,500 a year, or £375 a month. Real repayment mortgages also repay some of the balance each month, so actual figures will differ, but the example shows why the rate after a deal ends can matter so much.

Citizens Advice suggests checking whether you could still afford the mortgage if rates rose by 1 or 2 percentage points, using a mortgage calculator. On the same £150,000 of interest-only borrowing, an extra 1 percentage point adds £150,000 x 0.01 = £1,500 a year, or £125 a month, and an extra 2 percentage points adds £3,000 a year, or £250 a month. Testing a range like this can show how much room a household budget has.

## Who this applies to, and common mistakes

This guide is general information for homeowners with a residential mortgage in the UK who are coming to the end of a fixed rate. It does not apply to buy-to-let mortgages for the purposes of the Charter, and it is not advice on any particular deal or lender. Mortgage rules and lender policies can differ, and the Charter is a voluntary agreement rather than a law, so what a lender offers may vary. One common mistake is not noticing the end date and drifting onto a variable rate by default. Another is assuming that a deal must be taken with the same lender, when a remortgage is also possible. A third is overlooking fees: Citizens Advice says it is worth asking a new lender whether it charges for setting up and arranging the mortgage.

Leaving a deal early can trigger an early repayment charge, so many people look at the end date carefully before moving. Extending the term lowers monthly payments but, as Citizens Advice notes, means paying more interest over the long run, and GOV.UK says total costs over the life of the mortgage will be higher. If you are struggling with payments, it can help to speak to your lender early, and free, impartial help is available from Citizens Advice and MoneyHelper. People who are in arrears should keep working with their lender. Nobody should feel they have to cope alone with mortgage worries.

## Check before you act

Rules, rates and lender policies change, so confirm the details on the official pages linked below and with your own lender before relying on anything here. Figures were checked on 14 October 2026.

### Sources
- [GOV.UK, Mortgage Charter (published 26 March 2026)](https://www.gov.uk/government/publications/mortgage-charter-2026/mortgage-charter)
- [GOV.UK, Chancellor agrees new support measures for mortgage holders (23 June 2023)](https://www.gov.uk/government/news/chancellor-agrees-new-support-measures-for-mortgage-holders)
- [Citizens Advice, Reducing your monthly mortgage payments](https://www.citizensadvice.org.uk/debt-and-money/mortgage-problems/cutting-down-your-mortgage-costs/)