What Happens When Your Fixed Rate Ends? Hampshire Guide

When your fixed rate period ends, your mortgage automatically reverts to your lender’s Standard Variable Rate (SVR) unless you take action. In 2025/26, most lenders’ SVRs are 7–8.5% — significantly higher than the best available fixed rate remortgage deals at 4–5%. The monthly payment increase on reverting to SVR is the most common and avoidable cost in the Hampshire and Surrey mortgage market.

What is the Standard Variable Rate (SVR)?

The SVR is the lender’s default rate applied to any mortgage not currently in a fixed, tracker or discount period. Unlike fixed rates, the SVR can be changed by the lender at any time. SVRs are typically set 2–4% above the Bank of England base rate and currently run at 7–8.5% for most high street lenders. On a £250,000 mortgage balance, reverting from a 2% fix to a 7.5% SVR increases the monthly repayment by approximately £900.

Product Transfer vs Remortgage

When your fix ends you have two options: take a new deal from your existing lender (product transfer) or remortgage to a new lender. A product transfer is faster — no new application, no valuation, no solicitor, typically completed in 2–4 weeks. A remortgage accesses the whole market and may find a better rate, but takes 6–10 weeks and involves underwriting, valuation and solicitor costs (though many remortgage deals include free legal and free valuation).

The right choice depends on your current lender’s retention offer versus the best available remortgage rate. We compare both simultaneously and recommend based on net cost over the new fixed term. Product transfers are sometimes competitive — particularly for borrowers with complex income where a new full application creates underwriting risk — but are often worse than the open market.

When to Start the Process

Start 6 months before your current deal ends. Most lenders allow you to secure a new rate up to 6 months in advance with the option to switch to a better rate if one appears before completion. Starting 6 months early means you are protected against rate rises while retaining upside if rates fall. Starting less than 3 months early creates risk of a gap on SVR.

Hampshire and Surrey Remortgage Rates in 2025/26

The best available 2-year fixed remortgage rates are currently 4.0–4.5% (60% LTV) to 4.8–5.4% (90% LTV). 5-year fixed rates are typically 4.2–4.8% at 75% LTV. For Hampshire and Surrey borrowers with typical balances of £200,000–£400,000, the monthly saving from switching away from SVR is £400–£1,200 depending on balance and rate differential. We confirm your exact saving before any application.

Early Repayment Charges

If you are still within a fixed or discount period, an Early Repayment Charge (ERC) applies to leaving early. ERCs are typically 1–5% of the outstanding balance. We model whether paying the ERC and fixing at today’s rate produces a better outcome than waiting for the deal to end — often yes if rates have risen significantly since the original fix was taken.

The Hampshire and Surrey Remortgage Opportunity in 2025

Hampshire and Surrey have some of the highest average mortgage balances in England outside London. A Fleet homeowner who bought in 2019 on a 2-year fixed at 1.5% and has been on SVR since 2021 is currently paying approximately 7.5% on a balance of around £320,000 — that is £24,000 per year in interest. The best available 5-year fixed remortgage rate today is approximately 4.2% — reducing the annual interest cost to £13,440 and saving approximately £880 per month. Over the 5-year term that is £52,800 in gross interest savings before accounting for any capital repayment difference. The opportunity cost of staying on SVR in Hampshire and Surrey’s high-balance market is larger in absolute pounds than anywhere outside London.

Timing the Switch in a Falling Rate Environment

With the Bank of England in an easing cycle, some borrowers are considering waiting for rates to fall further before fixing. The risk of this strategy: if rates fall 0.5% over the next 12 months but you wait 12 months before fixing, you will have paid SVR for 12 additional months — approximately £6,000–£10,000 in excess interest on a typical Hampshire balance — to access a fixed rate 0.5% lower. The break-even calculation rarely favours waiting unless you have a specific reason to believe rates will fall materially within 6 months. We model the waiting versus switching decision for your specific balance and SVR rate before any recommendation.

FAQ

Questions

On a £250,000 balance the difference between a 2% fix and a 7.5% SVR is approximately £900/month. On a £400,000 balance, approximately £1,450/month. We confirm your exact SVR exposure before any application.

Depends on your lender’s retention rate versus the open market. We compare both and recommend the net cheaper option over the new fixed term.

6 months before your deal ends. Most lenders allow rate securing 6 months in advance with the right to switch to a better rate before completion.

Yes — same whole-of-market approach applies. Self-employed remortgages take slightly longer due to income verification but the process and outcome are the same.

For a product transfer: no. For a remortgage to a new lender: yes, but most competitive remortgage deals include free legal and free valuation.

Remortgaging is not possible in negative equity. Product transfer with your current lender remains available. We advise on the right approach if this applies.

No. We are paid by the lender on completion.