Remortgage to Avoid the Standard Variable Rate: How One Customer Saved With a Fixed Rate Switch

Customer Overview

A woman in her late 50s, employed in a professional role and residing in the South East of England, reached out to us for help with her upcoming mortgage renewal. With just under 12 years remaining on her balance and a low loan amount, her primary objective was securing a new fixed rate before her existing one expired.

Key Challenge: Avoiding the Lender’s High Standard Variable Rate

With her existing fixed-rate mortgage about to expire, this customer faced a sharp increase in monthly payments, as her lender’s standard variable rate (SVR) was significantly higher than her current deal. Her financial goals were clear:

• Secure a new 2-year fixed-rate mortgage
• Avoid expensive SVR payments
• Keep the existing term and loan amount unchanged
• Choose a lender that allowed for fast and simple processing

Our Tailored Remortgage Solution

Based on her objectives and timeline, we recommended staying with her current lender, Halifax. This would enable a seamless transition onto a new fixed-rate product without additional legal and administrative delays.

Details of the New Mortgage

• Lender: Halifax
• Interest Rate: Fixed at 4.71% until July 2027
• Loan Amount: £46,449
• Remaining Term: 11 years, 10 months
• Monthly Payment: £425.64

We explored 2-year and 5-year fixed options. Given her belief that interest rates may decrease soon, she opted for the more flexible 2-year deal. To maximise value, we recommended a fee-free product due to the relatively small loan size.

Repayment Method and Affordability

We advised a capital and interest repayment plan, giving the customer the reassurance that the loan will be repaid in full at the end of the term. Her income and expenses were carefully reviewed, confirming the affordability of both current and potential future payments.

Benefits and Results Achieved

• Immediate savings: By avoiding the SVR, she maintained manageable monthly payments.
• No product fees: She saved on upfront costs by selecting a fee-free option.
• Hassle-free process: By staying with her current lender, the switch was fast and easy.
• Peace of mind: Secured fixed payments for the next two years.

“I just wanted a straightforward switch that wouldn’t take up time and wouldn’t cost me extra. Deal Direct made it so simple and gave me exactly what I needed.”

Frequently Asked Questions

Can you remortgage to consolidate debt?

Yes. While this specific customer didn’t require it, many people remortgage to consolidate unsecured debt like credit cards and loans into a single, more manageable monthly payment.

Does remortgaging affect my credit score?

It can, but generally the impact is minor and temporary. Triggering a hard credit check during the application may lower your score slightly, but consistently meeting your new payments can positively influence your credit profile over time.

What documents are required for a remortgage?

• Proof of income (payslips, bank statements)
• Proof of identity (passport or driver’s license)
• Current mortgage statement
• Credit commitments and expenditure breakdown

Can I repay a fixed-rate mortgage early without penalties?

Most fixed-rate deals include an Early Repayment Charge (ERC). In this case, the customer would pay 2% of the balance if she repaid before July 2026, and 1% if before July 2027. Always check with your lender first before making additional payments.

Can I remortgage fund home improvements?

Yes, remortgaging to release equity for renovations is possible. While it wasn’t needed in this case, many homeowners choose this option to increase property value or suit changing family needs.

Take Control of Your Mortgage Today

Is your fixed rate ending soon? Want to avoid paying more than you need to on an unnecessary SVR? Whether you’re looking for a remortgage to save money, consolidate debt, or fund home improvements, we’re here to help. Our expert advice, fee-free recommendations, and vast access to lenders simplify the process from start to finish.

Contact Deal Direct today and let’s find the right mortgage solution for your needs — fast, affordable, and stress-free.