Homeowners with mortgages are being urged to take note of their individual mortgage expiry dates ahead of the Bank of England’s upcoming base rate announcement on June 18. While many are focused on the central bank’s decision, mortgage broker Joseph Lane from Mortgage Lane warns that your personal mortgage end date may be far more important — especially if your fixed-rate term is about to expire.
The Bank of England currently holds the base rate at 3.75%, but the real risk for many borrowers lies not in the June 18 announcement itself, but the possibility of defaulting onto their lender’s standard variable rate (SVR) if their fixed-term deal comes to an end beforehand. Moneyfacts data shows the average SVR remains at 7.13%, well above most fixed mortgage rates and meaning a significant monthly payment increase for those who revert to it.
“Your mortgage’s expiry date can affect your costs more urgently than the Bank’s decision,” Joseph explains. “If your fixed-rate deal ends and you don’t secure a new product in time, you risk automatically moving to a much more expensive SVR while waiting for better deals or the perfect market moment.”
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Joseph cautions that many homeowners only have a vague idea of when their fixed-rate term finishes — sometimes just ‘summer’ or ‘later this year’ — which isn’t precise enough. Knowing the exact expiry date is key to avoiding costly surprises.
Fixed-rate mortgages generally provide stable payments for two, three, or five years, but at term end, borrowers usually revert to the lender’s SVR unless they proactively arrange a new deal. Since SVRs tend to be substantially higher than fixed rates, slipping onto one can shock budgets.
Anticipating a rate cut after the Bank of England decision is a common reason for delays in switching. However, Joseph warns this strategy can backfire if the current deal expires before borrowers act. Even a short stint on an SVR can wipe out any potential savings gained from a later lower fixed rate.
“Delaying your decision trying to catch a future rate drop can result in paying more in the meantime,” he says. “It’s important to weigh the real cost of waiting.”
Joseph also clarifies a common misconception: fixed mortgage rates don’t automatically move in line with the base rate. Instead, they reflect broader market factors like swap rates, lender funding costs, and inflation expectations, meaning they can shift independently before the Bank of England even announces a change.
He advises borrowers to focus not just on headlines but on their own circumstances. Reviewing your mortgage end date, current interest rate, lender’s SVR, any early repayment charges, and product transfer options well in advance is critical.
Product transfers — switching to a new deal with your existing lender — can often speed up the process and avoid full remortgaging, although they might not always offer the lowest rate.
Joseph warns against last-minute decisions, which can limit choices and increase the risk of falling onto a costly SVR. Starting your review months before expiry allows more time to compare deals, secure better options, and avoid rushed mistakes.
Finally, Joseph underscores that mortgage decisions should be based on a comprehensive view including fees, term length, repayment flexibility, and your medium-term plans — not just the headline interest rate.
“Understand your personal mortgage deadline,” he states. “Waiting passively for the Bank of England’s announcement could cost you far more than being proactive. If your deal ends this year, check your expiry date now and plan accordingly to avoid unexpectedly high payments.”