Locking in a mortgage deal early: why it can be worth reviewing your options

When a fixed-rate mortgage approaches its expiry date, many borrowers wait until the final few weeks before reviewing their options. However, taking action earlier can offer a number of advantages.

By considering a new mortgage deal in advance, you may be able to lock in a rate that is available today before your current arrangement ends.

Importantly, securing a deal early does not necessarily mean you are committed to proceeding with that rate. 

Depending on the lender and product, if mortgage rates improve before completion, you may be able to review your options again.

This may provide some protection if rates rise while preserving the possibility of reviewing your arrangement if more suitable options become available.

The potential value of reviewing mortgage arrangements ahead of expiry can be seen in a number of recent cases. The following examples are based on actual client experiences. Mortgage rates and product availability can change at any time, and outcomes will depend on individual circumstances, lender criteria and market conditions. These examples are provided for illustrative purposes only and are not intended to indicate that similar results will be achieved in other cases. While acting early can provide greater flexibility when reviewing mortgage options, it does not guarantee access to lower rates or reduced monthly repayments.

A couple with a mortgage balance of £246,000 had taken out a two-year fixed-rate mortgage in 2024 at 4.77%. Six months before their deal was due to end, a new two-year fixed rate of 4.64% was secured. By the time their original mortgage expired, the lender's available rate had increased to more than 5%, meaning they had already locked into the lower rate.

In another case, a client with a mortgage balance of £129,983 had arranged a five-year fixed-rate mortgage in 2021 at 3.09%. Six months before the deal ended, a review of the available options led to a new five-year fixed rate of 4.71% being secured. When the original mortgage expired, the available rate was above 5%, meaning the rate secured earlier was lower than the rate then available from that lender.

Early action can also create opportunities where rates improve. A couple with a mortgage balance of £105,462 wanted the certainty of a longer-term arrangement as their two-year fixed-rate mortgage approached expiry. Six months before the end date, a five-year fixed rate of 4.95% was secured. The market was then monitored and a better five-year fixed rate of 4.69% became available. The original application was cancelled and replaced with the lower-rate option, reducing their borrowing costs.

These examples reflect individual circumstances. Mortgage rates, fees, eligibility and potential savings will vary, and similar outcomes cannot be guaranteed.

For the self-employed, arranging a mortgage can be more complex than it is for employed borrowers. Income may fluctuate from year to year, and lenders can assess earnings in different ways depending on your business structure and financial circumstances.

For example, the information a lender considers may differ depending on whether you're a sole trader, work through a limited company or earn your income through contracts. This makes understanding individual lender criteria particularly important.

As a result, leaving mortgage planning until the last minute can reduce the time available to explore your options. Reviewing your position several months before your current deal expires can provide more time to assess the market, prepare any documentation required by lenders and consider an appropriate arrangement for your circumstances.

These examples highlight the value of reviewing your mortgage well before your existing arrangement comes to an end.

Whether you're looking to explore new borrowing options or simply gain greater certainty over your monthly payments, an early review can help you understand the choices available and make an informed decision before your current deal ends.

For self-employed professionals, taking a proactive approach to mortgage planning can provide valuable peace of mind and ensure your mortgage continues to support your wider financial goals.

As IPSE's trusted independent financial advice partner, Chase de Vere offers fee-free mortgage advice to IPSE members.

Whether you're a sole trader, limited company director, freelancer or contractor, our mortgage advisers understand that self-employed income doesn't always fit neatly into a standard mortgage application. They can review your circumstances, explain how different lenders may assess your income and help you understand the mortgage options available to you.