How Refixing Your Mortgage Works

⚠️ The Rollover Trap

The most important thing to know about refixing is what happens if you ignore it. When a fixed term expires and you have not chosen a new rate, the loan usually defaults to the lender floating rate, which is typically higher than fixed rates. Sitting on the floating rate by accident can quietly cost you more every month.

Act Before the End Date

Lenders usually contact you before a fixed term ends, and many let you choose your next rate in advance, locking it in ready for the rollover date. Acting early means you avoid drifting onto the floating rate and have time to compare options. Mark the expiry date in your calendar so it never catches you out.

⚖ Choosing Your New Term

At each refix, you choose how long to fix for. Shorter and longer terms each have trade-offs, and the right choice depends on your circumstances and view of rates, not on guessing the market perfectly.

Certainty Versus Flexibility

A longer fixed term gives you payment certainty and protection if rates rise, but locks you in if rates fall and can mean break fees if you need to exit early. A shorter term keeps you flexible but exposes you to whatever rates apply at the next refix. Splitting your mortgage across different terms is a popular way to avoid having your whole loan refix at one moment. See our guide on fixed versus floating mortgages and compare rates with the Mortgage Interest Rate Comparison Calculator.

💡 Making the Most of a Refix

Treat It as a Review

A refix is an ideal moment to look at your whole mortgage, not just tick a box. Use it to check whether your repayments still suit you, whether you can afford to increase them to pay the loan off faster, and whether your lender is still competitive.

• Negotiate the rate: the first rate offered is not always the best; it is often worth asking for a better one.
• Compare other lenders: refix time is when refinancing to another lender is easiest, since there are usually no break fees at the end of a fixed term.
• Consider raising repayments: if you can afford more, paying extra cuts the term and total interest.
• Review your structure: splitting terms or adjusting amounts can better fit your situation.

Refix or Refinance?

Refixing keeps you with your current lender. Refinancing means moving the loan to a different lender, often to get a better rate or features. The end of a fixed term is the natural point to consider both, because you can usually move without break costs. See our guide on refinancing.

Final word: refixing is choosing a new rate and term when a fixed period ends. Act before the end date so you do not drift onto the higher floating rate, choose a term that fits your life rather than a forecast, and treat each refix as a chance to negotiate, compare lenders, and adjust your repayments. This is general information, not personalised financial advice.