When your fixed-rate mortgage ends, what happens next can have a big effect on your monthly payments, and doing nothing is usually the most expensive choice. This guide explains what happens when your fixed-rate mortgage ends, why the standard variable rate is so costly, and what you should do.
You move onto the standard variable rate
When your fixed deal ends, if you do nothing, your lender automatically moves you onto its standard variable rate, or SVR. This is the lender's default rate, and it is usually much higher than the deal you were on, so your monthly payments can rise sharply for exactly the same loan. The SVR is not a deal you choose; it is simply where you land if you take no action.
Why the SVR is so expensive
The standard variable rate is set by the lender at its own discretion, can change at any time, and is typically well above competitive fixed and tracker rates. In 2026, average SVRs are around 7%, far higher than the best available deals. On a typical mortgage, slipping onto the SVR can add hundreds of pounds to your monthly payment, with no benefit in return, which is why it is somewhere to leave as soon as possible.
What you should do
To avoid the SVR, you should arrange a new deal as your fixed rate ends, either a product transfer with your current lender or a full remortgage with a new one, as our guide to product transfer versus remortgage explains. Lining up a new deal to start the moment your fixed rate finishes keeps you on a competitive rate and avoids the costly default of the standard variable rate.
When to act
The time to act is before your fixed rate ends, not after. Because arranging a new deal takes time, starting three to six months ahead lets you have it ready to begin as your fixed deal finishes, avoiding even a single month on the SVR, as our guide to the best time to remortgage explains. Acting early is the key to a smooth transition onto a new deal.
Your options at the end of a fix
At the end of a fix, your main options are to take a new deal with your current lender, remortgage to a new lender, or, if you genuinely need flexibility for a short time, sit on the SVR briefly. Most people choose a new fixed or other deal to keep their payments down. Understanding these options, as our guide to how remortgaging works covers, helps you choose the right path.
The loyalty penalty
It is worth knowing that staying with your lender and simply accepting whatever they offer, or drifting onto their SVR, can cost you more than shopping around, a so-called loyalty penalty. Your lender's retention offer is not always their most competitive rate, and the SVR rarely is. Comparing the whole market, yourself or through a broker, ensures loyalty or inertia does not leave you paying more than you need to.
If you are already on the SVR
If your fixed deal has already ended and you are on the SVR, the best thing to do is remortgage as soon as possible, since there is usually no early repayment charge on the SVR and every month on it tends to cost more than a competitive deal. Acting promptly to move off the SVR is one of the most valuable steps a homeowner can take, often saving a significant sum.
An example of the jump to the SVR
Imagine you fixed at a low rate and your deal ends, dropping you onto an SVR of around 7%. On a £200,000 mortgage, the difference between your old rate and the SVR could add several hundred pounds to your monthly payment overnight. That is the same loan costing far more simply because the deal ended and you did nothing, which is why acting before the end matters so much.
Why lenders use the SVR
The standard variable rate is the lender's default rate, which a mortgage reverts to when a deal ends. It is not designed as a trap, and for a short period between deals it serves a purpose, but it is rarely competitive and the lender can change it at will. Knowing the SVR is simply the fallback, not a deal you would choose, underlines why you should arrange a new rate.
Can the SVR ever suit you?
Occasionally the SVR's flexibility, with usually no early repayment charge, can suit someone who plans to move or repay very soon and wants to avoid being tied in. For a short bridge, that freedom can be worth the higher rate. But as a place to settle, the SVR is almost always more expensive than a new deal, so for most people it is somewhere to leave quickly rather than stay.
Set a reminder for your end date
A simple way to avoid the SVR is to note when your fixed deal ends and set a reminder a few months before, prompting you to arrange a new deal in good time, as our guide to timing your remortgage explains. This small habit ensures you never drift onto the standard variable rate through simply forgetting your deal was about to end.
Getting a new deal lined up
The smooth approach is to line up a new deal, a product transfer or remortgage, to start exactly as your fixed rate ends. Because you can often secure a deal months ahead, you can arrange this in advance, avoiding any time on the SVR. Getting a new deal ready to begin seamlessly is the single best way to handle the end of a fixed rate without paying more.
The single most important message is to act before your fixed rate ends rather than after. By arranging a new deal to begin the moment your fix finishes, you sidestep the standard variable rate entirely and keep your payments where they should be. A reminder a few months ahead is all it takes to make sure the end of a fix never costs you more than it must.
Treat the end of a fix as a prompt
The healthiest way to handle the end of a fixed deal is to treat it as a routine prompt to review your mortgage, not a problem. Each time a deal ends is a chance to compare the market and secure a competitive rate, whether by switching or staying. Homeowners who see every deal-end as a moment to act, rather than a deadline to dread, keep their mortgage costs consistently low over the years.
In short
When your fixed-rate mortgage ends, you move onto the lender's standard variable rate if you do nothing, and in 2026 that averages around 7%, far above competitive deals, so your payments can jump. To avoid it, arrange a new deal, a product transfer or remortgage, to start as your fix ends, beginning the process three to six months ahead. If you are already on the SVR, switch as soon as you can.
Where to get help and next steps
Read our guides to the best time to remortgage, what remortgaging is, and remortgaging before your fixed deal ends. This is general information, not mortgage or financial advice.