Fixed-rate mortgages some early advice

Advice for borrowers coming to the end of fixed-rate mortgages

This advice was prepared by the Money Advice Trust and National Debtline in partnership with the Council of Mortgage Lenders.

If you are coming off a fixed-rate mortgage in the near future, you should plan ahead for higher payments.

Remember...If you are already having problems with your mortgage or any other household bills or credit commitments, you should seek independent, confidential and free advice as soon as possible.

What is a fixed-rate mortgage?

A fixed-rate mortgage is one where the interest rate on the loan is fixed for a certain period of time. ‘Fixed rate’ means that the amount you pay on your mortgage is the same each month (fixed) for the agreed period. Fixed-rate mortgages usually last for two or three years but some last for five years or more. With some loans, you can only stay on the fixed rate if you keep up with your payments. If you fall behind, you may have to pay more in the future. You should check this with your lender.

How do I know when my fixed-rate mortgage comes to an end?

You should have been given written confirmation of the length of your loan when you took out your mortgage. If you cannot find this information, contact your lender and they will be able to help you.

Why does it matter if my fixed-rate mortgage comes to an end?

Normally, when a fixed-rate mortgage comes to an end, the interest rate you pay will go up. This means that your monthly payments will also go up, sometimes by quite a large amount.

What should I do?

Check when your fixed-rate mortgage comes to an end, and find out how your lender will work out your interest rate after that.

Even if there are still some months to go before your fixed rate runs out, we recommend that you check what the new payment amount would be if you were coming off the fixed rate now, and then plan ahead for payments at that monthly level. By making some savings now to put towards your new, higher payments when they take effect, you could avoid financial problems later on.

If it is too late for that and you are already coming off your fixed rate, then check whether your lender offers any better deals than the normal rate you will otherwise have to pay.

You could also shop around to find out whether remortgaging would give you a more attractive deal, although bear in mind that some products attract high fees and there may be an early repayment charge for your existing mortgage.

If you think you will have difficulties in paying the new rate, contact your lender as soon as possible. Sometimes they might be able to re-arrange some of the terms of your loan to help keep your monthly payments manageable, although bear in mind that these arrangements can make your loan more expensive in the long run, so it is better to try to keep up your payments if you can.

If a solution cannot be found, you should seek independent, confidential and free advice as soon as possible. This is important, because certain options such as selling your home may affect your legal rights in relation to re-housing. Sources of advice are provided at the end of this leaflet. It is also worth checking whether you can claim any benefits or tax credits to top up your income. Once again, we recommend that you seek independent, confidential and free advice for help with this.

You may need to think about whether there are other areas of household spending that you could cut back on, but make sure you are paying all your essential household bills first. Also, you must pay your mortgage before any unsecured credit debts. If you have unsecured credit debts you may be able to negotiate with your lender to reduce your payments.

Sources of independent, free, confidential advice

advice UK is a membership association for over 1,000 information and advice centres throughout the UK. For further information call 020 7407 4070 or look in the Yellow Pages under ‘Counselling and advice’.

Advice NI provides leadership, representation and support to independent advice organisations in Northern Ireland. For further information call 028 9064 5919

Business Debtline provides free, confidential and independent advice on how to deal with business debt problems. For further information call 0800 197 6026.

Citizens Advice Bureau are independent charities providing advice and information across the UK. Details of individual bureaux are available for England and Wales, Scotland, and Northern Ireland, or in the Yellow Pages under ‘Counselling and advice’.

Community Legal Advice provides telephone advice across a range of legal areas directly to clients eligible for Legal Aid on 0845 345 4345, and also hosts a national directory of advice providers.

Consumer Credit Counselling Service is a charity that helps people who are over-indebted by providing free, independent, impartial and realistic support. For further information call 0800 138 1111.

Law Centres are independent, and employ lawyers and specialist advisers to assist and represent clients in court.

Money Advice Scotland does not provide an advice service direct to the public, but has details on its website of advice agencies throughout Scotland that provide a free, independent, impartial and confidential money advice service.

National Debtline provides free, confidential and independent advice on how to deal with debt problems. For further information call 0808 808 4000.

Payplan provides a free debt management service to people with debt problems. For further information call 0800 085 4298.

Shelter has over 200 specialist housing advisers, who can provide advice, information and help with legal and practical issues. Visit for a directory of face-to-face housing advice services. Shelter operates a housing advice helpline on 0808 800 4444. All services are free, professional and independent.