My Fixed Rate Is Ending but I Have Bad Credit, What Should I Do?
If your fixed rate mortgage is ending and your credit is not perfect, you are probably worried about what happens next. The good news is you still have options, but timing matters massively.
What Should I Do If My Fixed Rate Mortgage Is Ending and I Have Bad Credit?
If your fixed rate mortgage is ending and your credit has worsened, you still have options in many situations. Product transfers, specialist remortgages and early planning can often help borrowers avoid expensive standard variable rates.
What Happens When Your Fixed Rate Mortgage Ends?
When your fixed rate mortgage ends, your lender will usually move you onto their standard variable rate, often called the SVR.
This rate is usually much higher than fixed rates and can increase your monthly payments significantly.
Sitting on your lender’s variable rate is usually the most expensive option long term.
This becomes even more stressful if your credit has worsened since taking your mortgage out originally.
Can You Switch Mortgage Deals With Bad Credit?
Yes, potentially.
Even if your credit has worsened, many borrowers still have options available. These usually fall into two categories:
- Product transfer with your current lender
- Remortgage to a new lender
Option 1, stay with your current lender
This is often the easiest and safest route.
A product transfer means switching onto a new fixed rate with your existing lender rather than moving elsewhere.
Many lenders are far more flexible with existing customers than they are with new applications.
When product transfers work well
- Your mortgage is now fully up to date
- Any arrears have been cleared
- No current missed payments exist
- Your financial position has stabilised
When product transfers become harder
- You are currently in arrears
- Missed payments are ongoing
- Your situation is worsening
Even where remortgaging elsewhere is difficult, product transfers are often still possible.
Option 2, remortgage to a new lender
In some cases, moving to a completely new lender may still be possible.
This is more common where:
- You want to borrow more
- You want to change your mortgage term
- Your current lender’s new rates are not competitive
- You want to consolidate debts
However, where bad credit exists:
- Most high street lenders become much stricter
- Specialist lenders are often needed
- Rates are typically higher
The biggest mistakes people make
1. Leaving it too late
This is probably the biggest mistake.
Many people wait until their fixed rate has already ended before reviewing options. By then, they are already paying the lender’s variable rate.
2. Assuming there are no options
A lot of borrowers panic when their credit worsens and assume they are trapped.
In reality, product transfers are often still available even where remortgaging elsewhere becomes difficult.
3. Ignoring the underlying problems
If missed payments or arrears are continuing, the situation usually becomes harder over time.
What rates should you realistically expect?
Let’s be realistic.
- Product transfers are often cheaper than specialist remortgages
- Specialist lenders usually charge higher rates
- Recent arrears or missed payments reduce lender choice significantly
However, even a higher fixed rate is often far better than sitting on a very expensive standard variable rate long term.
The strategy we often use with clients
Step 1, secure a product transfer
This creates a safety net and avoids the standard variable rate.
Step 2, review the wider market
Once the immediate pressure is removed, we assess whether a better deal exists elsewhere.
Step 3, choose the best long term option
- Stay with the current lender if the deal is competitive
- Switch lenders if a better option exists
Simple, but very effective.
Case studies, real clients we’ve helped
Case Study 1, cleared arrears and stayed with lender
Client had historic missed payments but was now fully up to date.
- Completed simple product transfer
- Secured a new fixed rate
- No need to remortgage elsewhere
Case Study 2, waited and improved position
Client had one missed payment 8 months earlier and was still slightly in arrears.
- Advised to clear arrears first
- Maintained clean payment history
- Secured better lender options later
Case Study 3, left it too late
Client assumed there were no options and remained on the variable rate for nearly a year.
- Reviewed product transfer options
- Moved onto a fixed rate
- Reduced monthly payments significantly
When should you start reviewing options?
Early.
Ideally:
Start reviewing options around 3 to 6 months before your fixed rate ends.
Leaving things too late is one of the biggest reasons borrowers end up stuck paying expensive variable rates.
Can you remortgage with missed payments?
Potentially, yes.
The key factors are usually:
- How recent the missed payments were
- How many there were
- Whether the mortgage account is now stable
- Your current affordability
Specialist lenders are often far more flexible than high street banks in these situations.
Why specialist advice matters
Most borrowers only review mortgage options every few years, so it is understandable that this can feel confusing and stressful.
The problem is that many brokers mainly focus on clean credit high street cases and may incorrectly assume there are no options.
In reality, specialist lenders and product transfer strategies can still help many borrowers avoid financial pressure.
