Is It Time to Review Your Fixed Rate Mortgage? Why Switching Early Could Save You Money
Over the last 18 months, we’ve seen mortgage rates climb sharply and then begin to settle. For many homeowners, this has created a real challenge: locking into a deal at the “wrong time” and now feeling stuck paying more than they need to.
If you fixed your mortgage when rates were higher, you might be wondering whether it’s worth switching to one of the more competitive deals now available. The answer? It could be — even if you have an Early Repayment Charge (ERC).
Why Reviewing Your Fixed Rate Makes Sense
Most homeowners assume that once you’ve committed to a fixed rate, you have no choice but to sit tight until it ends. But that isn’t always the case.
Here’s why:
- Rates have improved. Lenders are offering more competitive products than those available during the height of rate increases.
- Savings can outweigh the ERC. In some cases, the reduction in monthly payments is so significant that, even after paying the penalty, homeowners come out ahead.
- Peace of mind. Securing a lower rate now could give you long-term stability, instead of waiting and hoping that things improve further down the line.
A Real-World Example
Imagine you fixed into a 5-year deal at 6% last year, but comparable products are now closer to 4.5%.
Even with an ERC in place, the savings on monthly payments over the remainder of your term could add up to thousands of pounds. Every case is different, which is why it’s worth having the numbers reviewed by a professional.
When It Might Be Right to Switch
Coming out of a fixed rate isn’t for everyone. But it can be especially beneficial if:
- You fixed during the peak of interest rates.
- You still have several years left on your deal.
- Your monthly budget feels stretched and you need some relief.
- You want to take advantage of today’s stability rather than risk future volatility.
Why You Shouldn’t Assume
The key takeaway is this: don’t assume your current deal is the best you can do just because it’s fixed.
Every lender, every deal, and every client’s circumstances are different. Sometimes it makes sense to stay put. But other times, switching early can be the smartest financial move you’ll make this year.
How Prospect Tree Mortgages Can Help
At Prospect Tree Mortgages, we specialise in reviewing existing products to see if there’s a better option available. We’ll:
- Crunch the numbers to weigh up the cost of any ERC against the potential savings.
- Compare deals across the whole of the market.
- Give you clear, honest advice about whether switching makes sense for you.
There’s no obligation — just the opportunity to make an informed decision about one of your biggest financial commitments.
Ready for a Review?
If you’re on a fixed rate mortgage and wondering whether you could be paying less, now is the time to review it. A quick conversation could save you more than you think.
Your home may be repossessed if you do not keep up repayments on your mortgage. The information contained within was correct at time of publication but is subject to change, 27.08.2025.
What’s Next?
If you’re thinking about moving home, remortgaging, or buying your first property, now is a great time to review your mortgage options. At Prospect Tree Mortgages, we’re here to help you understand your choices and find the best mortgage for your situation.
Get in touch with our expert advisors today to discuss how this base rate cut could benefit you. We aim to ensure you make the most of the opportunities available.
Call us at 0800 8620 840 or visit our website at www.ptmortgagesltd.co.uk to learn more.
If you’d like to learn more about mortgage products and how we can help you, please don’t hesitate to get in touch with our team. We’re here to help you navigate the ever-evolving world of mortgages and guide you toward a brighter, greener home.