How to Prepare for Your Mortgage Renewal in 2025

If your fixed-rate mortgage deal is coming to an end this year, now is the time to start preparing. With interest rates fluctuating, taking the right steps early can help you secure the best deal and avoid unnecessary costs.

What Happens When Your Mortgage Deal Ends?

When your fixed-term mortgage expires, you’ll typically be moved onto your lender’s Standard Variable Rate (SVR). This is often much higher than the fixed rates available, meaning your monthly payments could increase significantly.

Steps to Take Before Your Mortgage Renewal

Start Shopping Around Early

You can secure a new mortgage up to six months before your current deal ends.

Comparing rates early gives you time to find the best option rather than rushing at the last minute.

Consider Fixing Your Rate

If interest rates are expected to rise, locking in a fixed rate now could save you money in the long run.If rates are predicted to fall, a tracker or variable rate mortgage might be a better option.

Check Your Loan-to-Value (LTV) Ratio

If your home has increased in value or you’ve paid off a good portion of your loan, you may qualify for a better deal. The lower your LTV, the better the interest rates you can access.

Think About Overpaying

If you have spare savings, making an overpayment before switching deals could reduce your loan amount and lower your monthly payments.

Get Professional Advice

A mortgage broker can compare the entire market and help you find the best deal tailored to your situation. They can also handle the paperwork, making the process quicker and smoother.

Final Thoughts

Waiting until the last minute to renew your mortgage could leave you paying more than you need to. By planning ahead, shopping around, and seeking expert advice, you can ensure you get the best possible deal and keep your mortgage payments manageable.

If your mortgage is up for renewal soon, now’s the time to take action! Contact us