Fixed Rate Ending in 2026? Don't Drift Onto Your Lender's SVR

1.8 million. That's roughly how many UK households will watch their fixed mortgage deal end this year. If yours is one of them, the next move you make matters more than you might think.

By Philip Keith, Founder & Mortgage Adviser at Mellow Financial

The wave that's already breaking

Back in 2021, the base rate was near zero and five-year fixes under 2% were everywhere. A lot of people sensibly locked in. Fast-forward to 2026 and those deals are maturing in their millions — landing in a market that looks nothing like the one they were signed in.

The Bank of England held its base rate at 3.75% on 30 July 2026 and is leaning towards keeping rates higher for longer. The next review is 17 September. In short: cheap money isn't coming back any time soon.

Why doing nothing costs the most

When a fixed deal ends and you don't line up a new one, you don't simply keep your old rate — you slide onto your lender's Standard Variable Rate (SVR), which has been hovering around 7%. On a typical mortgage that can add several hundred pounds to your monthly payment overnight. Drifting is the most expensive thing you can do.

Where rates actually sit right now

Average fixed rates have been choppy — the typical 2-year fix is around 5.55% and the 5-year about 5.66% after nudging up through July. But the headline averages hide the good deals:

●     At lower loan-to-values, best 2-year fixes start near 4.24% and 5-year fixes from about 4.29%.

●     First-time buyers with a smaller deposit can still find deals around 4.62% at 90% loan-to-value.

●     With house prices up around 1.8% over the year, many homeowners now sit in a lower — and cheaper — loan-to-value band than at their last remortgage.

You can act up to six months early

Here's the bit most people miss: you can usually secure a new rate up to six months before your current deal ends. That gives you the best of both worlds. If rates rise, you're protected. If they fall before your start date, a good broker can swap you onto the cheaper deal. Either way, you never touch that 7% SVR.

Remortgage or product transfer?

You've broadly got two routes. A product transfer stays with your current lender — quick and simple, no new affordability checks. A remortgage moves you to a new lender, which can unlock a sharper rate or let you borrow more, in exchange for a bit more paperwork. Which one wins depends entirely on your numbers, and that's exactly what I'll work out with you.

Book your free initial call

Tell me when your deal ends and I'll check what you're rolling onto, compare a remortgage against a product transfer, and map out the cheapest way through. Clear, jargon-free, no pressure.

 Book your free initial call 

Two minutes, costs nothing. Book above or call me on 01172 510544.