Renegotiating fixed-rate mortgages is easy and straightforward – if you give yourself enough time before the term comes to an end. When your fixed rate finishes, you are free to remortgage, if you wish, either with your current lender or someone else.

It’s a good idea to start checking out the available mortgage deals up to six months before the end of your fixed rate period. If rates have shifted, it is worth checking these rates against your deal to see if you can save money.

Renegotiating-fixed-rate-mortgages does not take a long time to sort out – but you need to give yourself enough time.

When a fixed rate ends, you’ll automatically be switched onto your lender’s Standard Variable Rate (SVR) or a tracker rate. These are variable rate mortgages and they don’t offer the same payment security as a fixed rate. And depending on interest rates, you could experience a sudden jump up in payments.

And sometimes payments will drop if the current variable rate you switch to is lower than what you’ve been paying. While this may come as a pleasant surprise, remember that if rates go up so will your repayments. But what if you don’t switch to a fixed deal and interest rates fluctuate? Well, you could end up paying a lot more than if you had remortgaged to another fixed rate.

RENEGOTIATING FIXED-RATE MORTGAGES

If you fix on a lower tracker or variable rate, it’s worth thinking about keeping monthly payments the same. This means you will be overpaying every month, which will reduce the term of your mortgage more quickly. Read more about overpaying your mortgage here.

If your fixed-rate mortgage is coming to an end this summer, give yourself enough time to renegotiate. At A Miller Financial we can advise on your situation based on your personal circumstance, and the rates available.

Read more about fixed and variable rates here.