Fixed-Rate Mortgages Explained (2026): How Long to Fix & What Happens When It Ends
A fixed-rate mortgage locks your interest rate for a set period, so your monthly payment stays the same no matter what happens to interest rates. Here’s how they work, whether to fix for 2, 5 or 10 years, and exactly what to do when your fixed rate ends.
Quick Answer
A fixed-rate mortgage charges the same interest rate for an agreed period — usually 2, 5 or 10 years — so your monthly repayments are fixed and predictable during that time, even if the Bank of England changes the base rate. It’s the most popular type of mortgage in the UK because it protects you from rate rises and makes budgeting easy.
When the fixed period ends, you’re automatically moved onto your lender’s standard variable rate (SVR), which is usually much higher. That’s why most people remortgage onto a new deal before their fix ends. Your home may be repossessed if you don’t keep up repayments on your mortgage.
On this page
What Is a Fixed-Rate Mortgage?
A fixed-rate mortgage is a mortgage where the interest rate is locked for a set period at the start of the deal. Whatever happens to interest rates during that time — up or down — the rate you pay, and therefore your monthly payment, doesn’t change until the fixed period ends.
The fixed period is shorter than the full mortgage term. You might take a 25-year mortgage but fix the rate for just the first 5 years; when those 5 years are up, the fix ends but the mortgage continues. Most UK borrowers are on fixed rates precisely because of that certainty — you know exactly what you’ll pay each month, which makes budgeting far easier than with a rate that moves.
Fixed rate vs the mortgage term
These are two different things. The term is how long you take to pay off the whole mortgage (e.g. 25 or 30 years). The fixed period is how long your rate is locked (e.g. 2 or 5 years). When the fix ends, you don’t have to repay the mortgage — you simply need a new rate, either from your current lender or by remortgaging elsewhere.
How Long Should You Fix For — 2, 5 or 10 Years?
This is the decision most people wrestle with, and there’s no single right answer — it depends on your plans and your view of where rates are heading. Here’s the trade-off:
2-year fix
A shorter lock. You’re free to remortgage sooner, so if rates fall you can grab a cheaper deal quickly. But you’ll face arrangement fees again in two years, and you’re exposed to higher rates if they’ve risen when you come to renew.
5-year fix
The most popular choice. Longer certainty, fewer remortgages, and protection from rate rises for half a decade. The downside: if rates fall, you’re locked in — and leaving early usually means an early repayment charge.
A 10-year fix goes further still, offering a decade of stability, but ties you in for a long time and can carry steep charges if your circumstances change. As a rough guide: fix short if you think rates will fall or you may move soon; fix long if you value certainty and want to stop worrying about rates. Because the maths depends on today’s deals and your own plans, this is exactly what a broker helps you weigh up.
What Happens When Your Fixed Rate Ends?
This is the moment that catches people out, so it’s worth being crystal clear. When your fixed period ends, your lender automatically moves you onto their standard variable rate (SVR) — and the SVR is almost always significantly higher than the fixed rate you were on. Your monthly payment can jump sharply overnight if you do nothing.
You don’t have to accept that. In the months before your fix ends, you have three options:
- Remortgage to a new deal with a different lender — often the cheapest route, as you can shop the whole market for a better rate.
- Take a new deal with your current lender (called a product transfer) — quicker and simpler, though not always the cheapest.
- Do nothing and slip onto the SVR — almost never a good idea, because you’ll usually pay far more than you need to.
The key is timing. You can usually line up a new deal three to six months before your current fix ends, so the new rate starts the moment the old one finishes and you never touch the expensive SVR. If your fixed rate is ending soon, this is the single best time to speak to a broker — they’ll have your new deal ready to go.
Fix ending in the next 6 months?
Don’t wait until you’re moved onto the standard variable rate — by then you’re already overpaying. A broker can secure a new deal now that starts the day your current fix ends, so your payment never spikes.
Compare mortgage deals and get matched with an FCA-regulated adviser who’ll handle the remortgage for you.
Fixed vs Variable and Tracker Mortgages
The main alternative to a fixed rate is a variable rate, where your payments can move. It’s worth knowing the difference:
Fixed rate
Your rate and payment are locked for the deal period. Certainty and protection from rises — but you won’t benefit if rates fall, and leaving early usually costs a fee.
Variable & tracker
Your rate can go up or down — a tracker follows the Bank of England base rate, while an SVR is set by the lender. You gain if rates fall, but your payments are less predictable and can rise.
Most people who want stable, predictable payments choose a fix. Those who expect rates to fall, or want the flexibility to overpay or leave without penalty, sometimes prefer a variable or tracker. There’s no universally “better” option — it depends on your circumstances and your appetite for uncertainty.
Pros and Cons at a Glance
Advantages
- Your monthly payment is fixed and predictable
- Protection if interest rates rise
- Makes budgeting straightforward
- The most widely available type of UK mortgage deal
Disadvantages
- You won’t benefit if rates fall during the fix
- Early repayment charges usually apply if you leave early
- You’re moved to a higher SVR when the fix ends
- Arrangement fees apply each time you take a new deal
Can You Leave a Fixed-Rate Mortgage Early?
Yes, but it usually costs you. Most fixed deals carry an early repayment charge (ERC) if you repay or remortgage before the fixed period ends — often a percentage of the outstanding balance, and typically higher the earlier you leave. On a large balance that can run to thousands of pounds.
There are times it can still be worth it — for example, if a much cheaper deal would save you more than the ERC costs, or if you’re moving home. Many fixes are also “portable”, meaning you can take the deal with you to a new property. Because the numbers are specific to your deal, it’s worth having a broker check whether leaving early actually saves you money before you commit.
Frequently Asked Questions
What happens when my fixed-rate mortgage ends?
When your fixed period ends, your lender automatically moves you onto their standard variable rate (SVR), which is usually much higher — so your monthly payment can rise sharply. To avoid that, most people remortgage onto a new deal, or take a new product with their existing lender, before the fix ends. You can typically arrange the new deal three to six months in advance so it starts the day the old one finishes.
Is it better to fix for 2 or 5 years?
It depends on your plans and your view of rates. A 2-year fix gives flexibility to remortgage sooner if rates fall, but means more frequent fees and re-exposure to rate changes. A 5-year fix gives longer certainty and protection from rises, but locks you in if rates drop. A broker can compare current 2 and 5-year deals against your situation to show which is likely cheaper overall.
What is a fixed-rate mortgage in simple terms?
It’s a mortgage where the interest rate — and therefore your monthly payment — is locked for a set period, usually 2, 5 or 10 years. It doesn’t change during that time even if interest rates move, which makes your payments predictable and easy to budget for. When the fixed period ends, you move onto the lender’s variable rate unless you arrange a new deal.
Can you get out of a fixed-rate mortgage?
Yes, but you’ll usually pay an early repayment charge (ERC) for leaving before the fixed period ends — often a percentage of the balance that reduces the longer you’ve been in the deal. It can still make sense if the savings from a cheaper deal outweigh the charge, or if you’re moving and can’t port the deal. A broker can work out whether leaving early actually saves you money.
Can you move house with a fixed-rate mortgage?
Often yes. Many fixed-rate mortgages are “portable”, meaning you can transfer the existing deal to your new property when you move, avoiding early repayment charges. Whether it’s possible depends on your lender’s criteria and whether you need to borrow more. A broker can confirm whether your deal is portable and whether porting is your best option.
Why is my standard variable rate so much higher than my fixed rate?
The SVR is the lender’s default rate, and it isn’t designed to be competitive — it’s what you fall onto if you don’t arrange a new deal. It can move at the lender’s discretion and is typically well above the fixed and tracker deals available on the open market. That’s why slipping onto the SVR when your fix ends usually means overpaying, and why remortgaging in good time matters.
- Financial Conduct Authority (FCA) — Mortgages and Home Finance: Conduct of Business (MCOB) rules
- MoneyHelper — guidance on fixed-rate mortgages, remortgaging and standard variable rates
- Bank of England — base rate and its effect on mortgage rates
Important information
nextmove is an introducer, not a lender or adviser. This article is for general information only and does not constitute financial advice. We introduce you to FCA-regulated mortgage brokers who can advise on your individual circumstances, and we may receive a fee or commission for doing so.
Your home may be repossessed if you do not keep up repayments on your mortgage. Rates, criteria and lender availability change over time — always confirm current terms with a regulated adviser before proceeding.
Mortgages
Compare mortgage deals
Get matched with an FCA-regulated broker who can compare fixed-rate deals and time your remortgage. Free & independent.
Compare mortgage deals → Independent · No obligation