Another mortgage question - what happens when my fixed deal runs out

[TooHotToTangoToo]

As it says in the title, my fixed rate (1.3%) runs out next year, with all this talk of lenders freezing deals etc, what happens if my current lender won't offer me another fixed deal? Do I just go onto their standard variable rate? Could they also cancel my mortgage and I'd have to go to another lender? (My credit rating is good and I've never defaulted)

Pretty sure they can't cancel your mortgage as you owe them money . I would imagine if you don't accept a new deal then you will just go on the variable rate .

Yes it will revert to the svr. When you say cancel do you mean ask you to repay it all? They can’t do that and wouldn’t be in their interests as they want the interest from you. They’d have to prove breach of contract which is usually you not having paid but even if you weren’t paying it takes months and months to repossess a house.

You go to a mortgage broker and look for another fixed rate deal. But the interest rate will be much higher than what you're paying now.

Remember you can secure a new rate 6 months before your current deal runs out.

there’s no reason that they wouldn’t offer you a new deal so relax

Yes you can go to another lender and that meat be your best option. Go to a mortgage broker and get some advice.

Thanks @ferneytorro When you say cancel do you mean ask you to repay it all? They can’t do that and wouldn’t be in their interests as they want the interest from you. They’d have to prove breach of contract
Yes this is what I mean. Puts my mind at rest. There's no reason for them to do it, as I've always paid with no issues, just worrying times

You go to a broker about 5/6 months before your current product ends and they look to get you another deal. It won't be as good as you are currently on, unfortunately, but you absolutely do not have to go onto SVR and nobody will be cancelling your mortgage.

As others have said, you will move onto their SVR if you don’t do anything.

When, next year, does your fix end? Check out their terms as some lenders let you move to a new fixed deal, without any penalty (ERC - Early Repayment Charges), between 3-6 months before your fixed deal ends. Even if you’ve got a couple of months longer than that, sometimes it’s worth paying the ERC to secure a rate now rather than waiting.

As others have said, you can also search the market for other deals with other lenders. Bear in mind that, if moving to a new lender, you will likely need to go through a new valuation process on your property, plus more intensive financial scrutiny.

Ive usually found that, in the long run, I’ve been better-off staying with the same lender. Partly as the cost savings were negligible, but also less hassle - not having to go through valuations and financial checks was a big stress-saver.

My deal runs out September next year, so I'll start looking around March time. I went through a broker so will give him a nudge then too