Selling your home as your fixed mortgage term expires? Cash In ÂŁ100k+ or Face Costly Cliff Edge.
Over 1.2 million UK homeowners face this dilemma yearly, with average SVR rate hikes adding £3,600+ annually to repayments. Time your move right, and you could unlock six-figure equity—get it wrong, and you’ll pay thousands in fees or risk repossession.
Table of Contents
What Is a Mortgage?
A mortgage is a loan secured against your home, repaid monthly over 25-35 years. Fixed-rate deals lock your payments for 2-10 years, shielding you from rate rises—but they’re ticking time bombs once the term ends.
Can You Remortgage Early?
Yes, you absolutely can remortgage before your current deal ends, but there’s a catch – you’ll likely face Early Repayment Charges (ERCs). These pesky fees typically range from 1-5% of your outstanding mortgage balance, which can add up to a tidy sum.
When you remortgage early, your lender essentially charges you for breaking your agreement with them. Most lenders use a sliding scale where the charges decrease over time – perhaps 5% in year one, 4% in year two, and so on.
Take Steve from Leeds, for example. He took out a five-year fixed mortgage at 4.75% back in 2022 when rates were climbing. His mortgage balance is ÂŁ275,000. Fast forward to now, and interest rates have improved significantly. Steve has found a new two-year fix at just 3.5%, which would reduce his monthly payments by about ÂŁ190.
Sounds brilliant, right? Well, Steve checked his mortgage terms and discovered he’d face a 3% Early Repayment Charge for leaving his deal early – that’s a hefty ÂŁ8,250. Doing the sums, Steve worked out he’d save around ÂŁ4,560 in interest payments over the next two years with the new rate (ÂŁ190 Ă— 24 months), but he’d be ÂŁ3,690 worse off after paying the ERC.
However, Steve’s situation changed when his broker found him an even better deal at 3.2%. This increased his monthly savings to ÂŁ235, totalling ÂŁ5,640 over two years. Suddenly, even after paying the ÂŁ8,250 ERC, he’d be ÂŁ2,390 better off over the next 24 months – and would continue saving if rates stayed higher after that.
If you’re keen to avoid these charges altogether, timing is everything. You can start shopping around about six months before your deal ends, as most mortgage offers remain valid for 3-6 months. This means you can secure a new rate in advance but set the start date for when your current deal expires.
Many people don’t realise that most mortgages also allow you to overpay around 10% of your outstanding balance each year without penalty. This can be a brilliant way to reduce your mortgage without triggering those nasty ERCs.
It all comes down to the numbers – sometimes paying that penalty is like taking a short-term hit for a long-term gain, while other times it’s better to stick it out until your deal ends. Every situation is different, so it’s worth doing the calculations or speaking with a broker to see what makes sense for your circumstances.
What Happens When Your Fixed Rate Mortgage Ends?
Your lender slaps you onto their Standard Variable Rate (SVR), currently averaging 7.81% (up from 5.26% on fixed deals). For a £200,000 mortgage, that’s £301 extra monthly. Act fast: most lenders let you remortgage 3-6 months before term expiry.
Tip: Use comparison sites to check remortgage rates before your term ends.
Are Mortgage Rates Likely to Go Down?
Bank of England predictions show rates dipping to 4.5% by late 2025. But with inflation sticky, experts warn SVRs could stay above 7% for years. Locking a new fixed deal now beats gambling on future drops.
What Happens at the End of an Interest-Only Mortgage?
You owe the full loan amount immediately. Fail to pay, and lenders can repossess. Over 40% of interest-only borrowers have no repayment plan—don’t be one.
| Solution | Who It Suits | Risk Level |
|---|---|---|
| Sell property | Those with equity | Low |
| Equity release | Over-55s needing cash | Medium |
| Switch to repayment | Under-60s with stable income | High |
Can I Extend My Mortgage Term?
Yes, you absolutely can extend your mortgage term in most cases, and it’s becoming increasingly common as homeowners look to make their monthly payments more manageable. Extending your term essentially spreads your repayments over a longer period, reducing your monthly outgoings – sometimes quite significantly.
Most lenders will allow you to extend your mortgage term when you remortgage or even during a product transfer with your existing lender. If you’re currently paying ÂŁ900 monthly on a 20-year term, extending to 25 years could drop your payments to around ÂŁ780 – that’s a potential saving of ÂŁ120 every month which can make a world of difference when budgets are tight.
The catch? You’ll end up paying more interest overall. Take a ÂŁ200,000 mortgage at 4.5% – extending from 20 to 30 years would save you about ÂŁ266 monthly but cost an extra ÂŁ57,000 in interest over the full term. It’s a trade-off between short-term affordability and long-term cost.
Age is a key consideration here. Most lenders impose maximum age limits for when your mortgage ends – typically between 70-85 years old. If you’re 45 now, extending to a 30-year term shouldn’t be problematic, but if you’re 60, you might find your options more limited.
I’ve seen many homeowners successfully extend their terms during financial pinch points like starting a family or changing careers. Your lender will need to reassess affordability even if you’re extending with them, so you’ll need to provide updated income and expenditure details.
The good news is that extending your term now doesn’t mean you’re locked in forever. Most mortgages allow overpayments of up to 10% annually without penalties, so you can chip away at the balance faster if your finances improve, effectively shortening your term again without the formal commitment.
For those struggling with mortgage payments, extending your term can be a lifeline that helps you avoid more drastic measures like selling up or falling into arrears. Just be sure to weigh up the short-term benefits against the long-term costs before making your decision.
End of Mortgage Term Options
If you’re considering your options right now, re-mortgaging to a new fixed deal could be worth exploring. The latest figures from Rightmove show that as of April 2025, the average 2-year fixed mortgage rate stands at 4.87%, while 5-year fixes average 4.73%. But don’t be put off by these average figures! If you shop around, you can find significantly better deals – the lowest 2-year fixed rate is currently 3.86%, and the lowest 5-year fix is 3.97%.
Your loan-to-value ratio makes a massive difference to the rates you’ll be offered. For those lucky enough to have at least 40% equity (60% LTV), average rates start from 4.25% for a 2-year fix. Halifax is currently offering the market-leading rate of 4.06% on their 2-year fix for purchases at 60% LTV, though it does come with a ÂŁ1,099 fee.
For homeowners with smaller deposits, rates are understandably higher – if you’ve only got a 5-10% deposit, you’re looking at rates between 4.91% and 5.66%. These figures are a substantial improvement compared to last year, with most rates showing yearly decreases of between 0.07% and 0.43%.
At Property Saviour, we often speak with homeowners who are struggling with their current mortgage rates. While remortgaging can be a brilliant solution, don’t forget that your lender will likely charge Early Repayment Charges if you’re still within your fixed term. These charges can be substantial, so it’s essential to do the sums and see if the savings from a new, lower rate will outweigh the penalty.
For those who need a quicker solution, particularly if you’re facing repossession or need to move urgently, selling to us could be your best option. We can complete cash purchases in as little as 7 days, giving you the certainty and speed that traditional sales simply can’t match. Yes, we typically offer below market value, but the peace of mind and speed of transaction can be worth it for many homeowners in difficult situations.
If you’re planning to move home rather than simply change your mortgage deal, consider porting your existing mortgage. This lets you keep your current interest rate and terms while moving the loan to your new property. It’s particularly valuable if you secured a low rate before the Bank of England started raising the Base Rate, which currently stands at 4.5% after the February cut.
Remember, most mortgages allow you to make overpayments of around 10% each year without penalty – a fantastic way to reduce your balance while avoiding those pesky Early Repayment Charges.
With the Base Rate predicted to fall to around 4% by the end of 2025, we might see further reductions in mortgage rates as the year progresses. Whether remortgaging, selling, or porting is right for you depends entirely on your personal circumstances and priorities – speed, certainty, or maximising your property’s value.
What Is The Maximum Age For Getting A Mortgage?
There’s no universal age limit for getting a mortgage in the UK, but most lenders do have their own criteria. Typically, lenders set maximum age limits between 70-85 at the end of your mortgage term, rather than when you apply. For example, HSBC caps at 75, Halifax at 80, and NatWest at 70. This means if you’re 55, you could potentially take out a 20-25 year mortgage with many high street lenders.
The good news is that the mortgage market has become much more accommodating to older borrowers in recent years. In fact, some building societies like Loughborough, Suffolk and Cambridge have no upper age limit at all! I recently heard about a 78-year-old who was approved for their first-ever mortgage – proving it’s never too late.
If you’re approaching or already in retirement, lenders will focus more on your pension income than your age itself. They simply need reassurance that you can comfortably afford the repayments after you stop working. For those already retired, specific products like Retirement Interest-Only (RIO) mortgages are designed precisely for this situation.
The application process remains largely the same regardless of age – it all comes down to affordability. You’ll need to provide evidence of your income, outgoings, and if you’re nearing retirement, details of your pension provisions. Different lenders have different policies, so if one turns you down, don’t be discouraged – there’s likely another who’ll be happy to help.
So whether you’re 36, 46, or 76, there’s likely a mortgage option out there for you. The key is finding the right lender whose criteria matches your circumstances.
Do You Pay More With a 25 or 35-Year Mortgage?
Yes, you absolutely pay more overall with a 35-year mortgage compared to a 25-year term, but your monthly payments will be noticeably lower. It’s a classic trade-off between short-term affordability and long-term cost that many homeowners grapple with.
Let’s look at the numbers for a typical ÂŁ200,000 mortgage at 4.5% interest. With a 25-year term, you’d pay about ÂŁ1,112 monthly, while a 35-year term drops this to around ÂŁ947 – that’s a monthly saving of ÂŁ165, which can make a significant difference to your household budget.
The catch? That extended term means you’ll be paying interest for an extra decade. Over the full 25-year term, you’d pay approximately ÂŁ133,500 in interest. Stretch to 35 years, and this balloons to nearly ÂŁ197,500 – that’s an extra ÂŁ64,000 leaving your pocket over the life of the mortgage!
Many first-time buyers opt for longer terms simply to get on the property ladder, particularly in pricey areas like London and the South East. That lower monthly payment can be the difference between a successful mortgage application and a rejection, especially with today’s strict affordability checks.
The good news is that most mortgages allow you to make overpayments of up to 10% annually without penalties. This means you could potentially start with a 35-year term for the breathing space it provides, then chip away with extra payments as your finances improve, effectively shortening your term without the formal commitment.
Age is another factor to consider. If you’re taking out a mortgage in your 20s or 30s, a 35-year term might make perfect sense. But if you’re in your 40s or 50s, you’ll need to think about whether you want mortgage payments extending into your retirement years.
For many homeowners, the ideal approach is to start with a longer term if needed, then look to reduce it at remortgage points as your income increases. Your circumstances will likely change considerably over the decades, whether through career progression, inheritance, or other windfalls.
So while you’ll definitely pay more interest with a 35-year mortgage, that lower monthly payment might be precisely what you need at certain stages of life. It all comes down to balancing your current financial situation against your long-term financial goals.
How Does a Mortgage Ever Get Paid Off?
A mortgage gets paid off through a clever little process called amortisation, where each monthly payment chips away at both the interest and the original loan amount (the principal). In the early years, it can feel like you’re barely making a dent – that’s because up to 80% of your payment might be going toward interest rather than reducing what you owe!
Take a typical £250,000 repayment mortgage at 4.5% over 25 years. Your monthly payment would be around £1,390, but in the first year, only about £400 of that goes toward reducing your actual debt. Fast forward 10 years, and the balance tips – suddenly more of your payment is tackling the principal than servicing the interest.
It’s a bit like rolling a snowball uphill at first, but once you reach the summit, momentum takes over. By year 15 of a 25-year mortgage, you’ll have paid off roughly 50% of the original loan. The final 25% gets cleared much faster than the first 25% – that’s the magic of amortisation!
Many homeowners speed up this process with occasional lump sum payments. Most UK mortgages allow you to overpay up to 10% of your balance each year without penalties. A one-off ÂŁ10,000 payment on a ÂŁ200,000 mortgage could shave nearly three years off your term and save around ÂŁ20,000 in interest!
Others take a more gradual approach by overpaying a small amount monthly. Adding just ÂŁ100 to your regular payment might not seem much, but over a 25-year term, it could knock off four years and save thousands in interest.
Some savvy borrowers use offset mortgages, where your savings balance is subtracted from your mortgage amount when calculating interest. ÂŁ20,000 in linked savings means you’re only paying interest on ÂŁ230,000 of a ÂŁ250,000 mortgage – a neat trick that can significantly speed up repayment.
The least exciting but most common way? Simply making your payments consistently for 25-35 years until that magical day when your balance hits zero. Not glamorous, perhaps, but effective nonetheless!
What to Do If Your Interest-Only Mortgage Term Is Ending?
Unlike repayment mortgages, with interest-only mortgages you’ve only been paying the interest each month, not reducing the actual loan amount. This means when your term ends, you’ll need to repay the entire original sum you borrowed – often tens or hundreds of thousands of pounds.
If your interest-only mortgage term is approaching its end and you’re unsure how to handle the balloon payment, don’t panic! Your lender will typically contact you about a year before the end date, then again at 6 months and as the final date approaches. Here are your main options:
The most straightforward solution if you don’t have the funds is selling your property. Many homeowners choose this route, especially if circumstances have changed – perhaps you’re looking to downsize anyway or move to a different area. This is particularly effective if your property has increased in value, giving you enough to pay off the mortgage with perhaps some leftover for your next move.
For those needing a quick and guaranteed sale, companies like Property Saviour can be a lifeline. We can purchase your property for cash in as little as 7 days, removing all the usual stress and uncertainty of a traditional property sale. While we typically offer below market value, the speed and certainty we provide can be invaluable when facing mortgage deadlines. We can even arrange early contract exchange and release up to 10% of the purchase price upfront to help with moving costs.
If you’d prefer to stay in your home, speak directly with your lender about extending your mortgage term. Many lenders are willing to give you more time, especially if you can show you’ll have the means to pay in the future. You might also consider switching to a repayment mortgage, where you’ll pay both interest and capital each month, gradually reducing the debt.
For those over 55, equity release or a retirement interest-only (RIO) mortgage could be viable options. These allow you to release equity from your property without monthly repayments, with the loan typically repaid when you die or move into care.
If your lender starts court action to repossess your home, get advice immediately. Several organisations offer free legal help, and your lender must consider delaying action if you’re actively trying to sell your property.
Remember, the worst thing you can do is ignore the situation. Lenders prefer working with customers to find solutions rather than pursuing repossession. Whether you choose to sell quickly through Property Saviour, extend your term, or explore other options, taking action early gives you the best chance of resolving the situation successfully.
What Happens When My Mortgage Term Ends?
So your mortgage term is coming to an end – exciting times! There’s something truly satisfying about reaching this milestone, but it also brings some important decisions your way.
If you’re just finishing a fixed-rate period (not the entire mortgage), your lender will automatically bump you onto their Standard Variable Rate unless you do something about it. Trust me, you don’t want that! SVRs are typically way higher than fixed rates – I’ve seen people’s monthly payments jump by ÂŁ200-300 overnight. Yikes!
The good news? This is your chance to shop around for a better deal. I’d recommend starting to look about 4-6 months before your current deal expires. Most mortgage offers are valid for at least 3 months, so you can line everything up perfectly and avoid that nasty SVR altogether.
Lots of people I talk to use this opportunity to rethink their mortgage term. Maybe you’ve had a pay rise and can afford to shorten your term? Or perhaps things are a bit tight and you’re thinking of extending it to make monthly payments more manageable?
I’ve noticed a massive shift recently – nearly 1 in 5 first-time buyers are now taking mortgages over 35 years! It makes perfect sense when interest rates are higher – stretching your term can be the difference between getting approved or not. The monthly savings can be huge, but (and it’s a big but) you’ll pay thousands more in interest over the long run.
Here’s what one savvy homeowner told me recently: “I took the 35-year option for the lower required payments, but I pay extra when I can. If money gets tight, I can always drop back to the minimum.” Smart thinking!
For those on interest-only mortgages, the end of your full term is a whole different ball game. Suddenly that big lump sum becomes due, and you need a plan! Selling up is often the simplest answer, but there are other options too.
And if you’re one of the lucky ones reaching the end of your entire repayment mortgage? Congratulations! That’s the mortgage dream – owning your home outright. No more monthly payments! Though some people actually choose to re-mortgage at this point to release equity for retirement, home improvements, or helping the kids.
Whatever stage you’re at, the key is planning ahead. Don’t leave it until the last minute – your future self will thank you!
Can I sell a house during a fixed-rate mortgage?
Yes, you can sell your house during a fixed-rate mortgage. However, you’ll likely face early repayment charges (ERCs) if you sell before the fixed term ends. These fees typically range from 1% to 5% of your outstanding balance. For example, a £200,000 mortgage with a 3% ERC would cost £6,000.
This table shows different options depending on where you are on the property ladder:
| Option | Best For | Cost Impact |
|---|---|---|
| Sell & pay ERC | Urgent movers | High (1-5% fee) |
| Port mortgage | Upgraders/downgraders | Low (no ERC) |
| Wait until term ends | Patient sellers | Zero |
What Happens At The End Of A Buy-To-Let Mortgage Term?
When your buy-to-let mortgage term ends, what happens next depends largely on whether you have an interest-only or a capital repayment mortgage. The vast majority of buy-to-let mortgages are interest-only, which means you’ve only been paying the interest each month, not reducing the actual loan amount.
If you have an interest-only buy-to-let mortgage (which most landlords do), you’ll reach the end of your term still owing the original amount you borrowed. At this point, you’ll typically have three main options: sell the property to repay the loan, use savings to clear the debt, or re-mortgage to a new product. Most landlords choose to re-mortgage, effectively kicking the can down the road for another term.
For those with capital repayment buy-to-let mortgages, you’ll have been paying off both the interest and the capital gradually. This means when you reach the end of your term, you’ll own the property outright with no mortgage debt remaining – it becomes “unencumbered,” as the industry likes to say.
The trickier scenario is if you only reach the end of your initial fixed rate period (not the full mortgage term). If you do nothing, your mortgage will automatically switch to your lender’s Standard Variable Rate (SVR), which is almost always significantly higher. I’ve seen landlords’ monthly payments shoot up by hundreds of pounds overnight!
Smart landlords start planning for the end of their mortgage deal about six months in advance. Most lenders will let you secure a new deal 3-6 months before your current one ends, which gives you plenty of breathing space.
However, many landlords are now finding themselves in a difficult position with their buy-to-let properties. Whether it’s rising interest rates eating into your profits, problematic tenants causing endless headaches, or simply wanting to exit the market due to changing tax rules – selling might actually be your best option.
If you’re nodding along to any of this, we at Property Saviour understand your situation perfectly. Unlike traditional estate agents who might take months to sell your rental property (often requiring you to evict tenants first), we can buy your property with tenants in situ. That’s right – no need to serve notice, deal with viewings, or worry about void periods without rental income.
We’re genuine cash buyers based in Leeds, helping landlords across the UK release their capital quickly and move on to their next venture. Many of our clients come to us when their buy-to-let mortgage term is ending and they’re facing the prospect of either finding a large lump sum or re-mortgaging at significantly higher rates.
Perhaps you’ve calculated that with current interest rates, your once-profitable investment property no longer makes financial sense? Or maybe you’ve inherited a rental property but don’t want the hassle of being a landlord? We can help in all these situations, offering a stress-free sale in as little as 10 days.
The best part is that we can provide copies of our bank statements and solicitor details upfront, so you know we’re serious and have the funds ready to go. No time-wasters, no chains, no mortgage approvals to wait for – just a straightforward property sale on your timeline.
So, if your buy-to-let mortgage term is ending and you’re considering your options, give us a call today for a free, confidential chat about your property, or request a callback for your no-obligation cash offer. Let us help you move on from your property investment – quickly, fairly and with absolute certainty.
What Happens To My Mortgage When I Sell My House In UK?
When you sell your house in the UK, your existing mortgage doesn’t just disappear – it needs to be dealt with as part of the sale process. The good news is that selling with an outstanding mortgage is incredibly common – in fact, most people move home long before they’ve paid off their mortgage completely.
Typically, when you sell your property, the outstanding mortgage is paid off (or ‘redeemed’ in industry speak) from the proceeds of the sale. Your solicitor or conveyancer handles this process for you. They’ll contact your lender for a redemption statement showing exactly how much you owe, then they’ll pay off this amount from the money received from your buyer on completion day.
Let’s say you sell your house for ÂŁ300,000 and you have ÂŁ180,000 left on your mortgage. Your solicitor would use ÂŁ180,000 from the sale proceeds to clear the mortgage debt, leaving you with ÂŁ120,000 (minus any legal fees and estate agent costs, of course). This remaining amount is your equity, which you can put towards your next property purchase or keep as savings.
If you’re buying another property, you have two main options: pay off your existing mortgage completely and take out a new one, or ‘port’ your current mortgage to your new home. Porting means keeping your existing interest rate and terms, which can be particularly beneficial if you’re on a good rate that would be difficult to match in the current market.
One thing to watch out for is Early Repayment Charges (ERCs). If you’re still within a fixed-term period of your mortgage (like a 2, 3, or 5-year fixed rate), most lenders will charge a fee for paying off the mortgage early. These can be substantial – typically around 1% of the outstanding mortgage balance for each year remaining on your fixed term. For example, if you have 2 years left on a fixed deal and ÂŁ200,000 outstanding, you might face an ERC of ÂŁ4,000.
The important thing to remember is that you only pay back what you currently owe – the capital balance plus any interest accrued since your last payment, and any applicable ERCs. You don’t have to pay all the future interest that would have been charged over the remaining mortgage term.
If the sale price doesn’t cover your outstanding mortgage (known as negative equity), things get a bit trickier. In this situation, you’ll need to make up the shortfall from other funds, or potentially negotiate with your lender about a ‘short sale’ where they accept less than the full amount owed.
As soon as you’re thinking about selling, it’s worth contacting your lender to understand your exact position. Most are used to dealing with property sales and can give you a clear picture of what you’ll need to pay, including any potential early repayment charges. A little planning can save a lot of headaches down the line!
Are You Struggling To Sell Your Property?
Are you stuck with a property that just won’t sell? Perhaps you’ve inherited a house that needs modernising, or maybe you’ve had buyers pull out at the last minute because they couldn’t secure a mortgage. If you’re nodding your head right now, we understand your frustration.
At Property Saviour, we specialise in buying properties that traditional buyers shy away from. Whether it’s an inherited house that hasn’t been touched for decades, a property with troublesome tenants, or even a building that’s standing empty and deteriorating by the day – we’ll buy it for cash, quickly and without any fuss.
Unlike other we buy any house companies, when we make an offer, we stick to it. No last-minute price drops, no nasty surprises. We’ve seen too many sellers waste months with supposed cash buyers, only for them to reduce their offer or reveal they actually need “lending facilities” at the eleventh hour.
We’re genuine cash buyers based in Leeds, helping property owners across the UK. We can provide copies of our bank statements and solicitor details upfront, so you know we’re serious and have the funds ready to go. Our track record speaks for itself – just check our five-star Google reviews from clients we’ve helped out of similar situations.
The best part? We can complete in as little as 10 days. No waiting around for mortgage approvals or lengthy chains. If you’ve got a Grant of Probate and the property is registered with the Land Registry, we can move even faster.
Imagine being free from your property headache in just a week and a half, with cash in your bank and the stress lifted from your shoulders.
Give us a call today for a free, confidential chat about your property, or request your no-obligation cash offer. Let us help you move on with your life – quickly, fairly and with absolute certainty.
Sell with certainty & speed
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay ÂŁ1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.Â
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.Â
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.Â
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
