How to review a loan before the fixed rate ends

2 min read

Diarise the endMonths ahead

Know the reversionWhat you roll onto

Re-fix or refinanceDecide early

Amount (£)

Option A annual rate (%)

Option A term (months)

Option B annual rate (%)

Option B term (months)

Compares total cost and monthly payment of two offers side by side.

Step 1 — diarise the fixed-rate end date

Find when your fixed-rate period ends and set a reminder two to three months before. That is the window to act without pressure.

Step 2 — find the reversion rate

Check the agreement for the reversion rate you will roll onto — often the standard variable rate or a benchmark plus margin. Work out the new payment so you know the size of any jump.

Step 3 — compare re-fixing, refinancing and reverting

Get a re-fix quote from your lender, a refinance quote elsewhere, and compare both against the reversion rate. If your profile has improved, a lower margin may be available.

Step 4 — factor in any exit costs

Check for an early-repayment charge if you refinance before the fix formally ends, and any arrangement fee on the new deal. Net these off the saving.

Step 5 — act before you roll off

Decide and arrange the switch before the fix ends, so you never sit on an expensive reversion rate by default.

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Frequently asked questions

When should I review a fixed-rate loan?

Two to three months before the fixed period ends. That leaves time to re-fix or refinance without being rushed onto the reversion rate.

What is a reversion rate?

The follow-on rate a loan moves to once the fixed or introductory period ends — often higher than the initial rate, which is why reviewing early matters.

Is refinancing before the fix ends worth it?

Sometimes, if a materially lower rate is available and the early-repayment charge does not swallow the saving. Do the maths net of all costs.