Should you break things off with your mortgage lender this Valentine’s Day?
As Valentine’s Day approaches, the latest research from award-winning mortgage adviser, Alexander Hall, has revealed that more than half of homeowners approaching the end of a fixed-rate mortgage are currently undecided on their relationship with their lender, despite notable improvements across the mortgage market over the last 12 months.
The consumer insight, commissioned by Alexander Hall, surveyed 1,035 homeowners whose fixed-rate mortgage is due to expire within the next year.
56% of homeowners undecided on their future with current lender
The research found that just 12% are planning to switch to a new lender, while 32% intend to stay with their current provider. However, the majority, 56%, have yet to decide whether to stick with what they know or explore their options elsewhere.
For those planning to “break things off” with their lender, securing a better interest rate and reducing monthly payments ranked as the primary motivation. Improvements to loan-to-value also featured highly, alongside the opportunity to borrow more or release equity.
These are all practical advantages that can come from changing lender. As part of the remortgaging process, lenders will carry out a fresh valuation of the property and, if the home has increased in value, this can improve the borrower’s loan-to-value band. Moving into a lower LTV bracket can unlock more competitive pricing and strengthen overall affordability.
It can also provide the opportunity to adjust the mortgage term. Borrowers who have become accustomed to higher repayments may choose to shorten their term when moving to a lower rate, helping them pay off their mortgage sooner. At the same time, those facing higher repayments than previously could look to extend their term, subject to lender criteria, to ease monthly pressure.
Staying put for the wrong reasons
In contrast, homeowners choosing to remain loyal to their existing lender appear to be doing so for potentially the wrong reasons.
The most common reasons cited for staying put were that it is quicker and more straightforward, followed closely by a desire to avoid full affordability checks. Concerns around being declined by another lender or changes to personal circumstances, such as income or credit score, also ranked highly among those opting to stay.
However, further analysis by Alexander Hall suggests that many homeowners could be making a mistake by not exploiting their options.
More products now available to borrowers
The firm’s analysis of current mortgage product availability shows that choice has increased substantially over the last year, giving borrowers far more scope to shop around than they may realise.
The number of remortgage products currently available is some 13.7% higher than it was just a year ago, while home mover mortgage options have also increased by 13.5% over the same period. This growth in product availability reflects stronger competition among lenders and a more accommodating environment for borrowers considering their next move.
Understanding your options when your fixed rate ends
When a fixed-rate mortgage comes to an end, homeowners generally have three main routes available to them.
A product transfer involves staying with your existing lender and switching onto a new deal they offer. This is often the fastest and simplest option, typically avoiding legal work or a new valuation. However, while convenient, it may not always deliver the most competitive rate available across the wider market.
Remortgaging to a new lender means replacing your current mortgage with a new one elsewhere. This requires full underwriting, including credit checks, income verification, affordability assessments and a fresh valuation. While more involved, this option can provide access to lower rates, improved terms and greater flexibility.
The third option is to move onto your lender’s standard variable rate. While this may feel like the easiest short-term solution, it is rarely the most cost-effective. Standard variable rates are typically higher than fixed-rate deals and can fluctuate at the lender’s discretion, meaning monthly repayments may increase without warning. Remaining on the SVR for an extended period can therefore result in significantly higher costs.
It is also important to factor in potential costs when switching or leaving a lender. These can include early repayment charges if a fixed term has not yet ended, exit or deeds release fees, and arrangement fees on a new mortgage. Legal and valuation fees may apply, although many remortgage deals now include these as part of the package.
Top tips if you’re thinking of changing mortgage lender
Start early – Begin reviewing your options three to six months before your fixed rate ends to avoid drifting onto your lender’s standard variable rate.
Look beyond the headline rate – A cheaper rate can be offset by higher fees, so always compare the true cost over the fixed term.
Check your credit file – Addressing errors or high utilisation ahead of applying can improve the deals available to you.
Take advantage of LTV improvements – If your property has risen in value, you may qualify for better pricing bands.
Use a mortgage adviser – An adviser can assess the whole market, sense-check affordability, and outline options without committing you to switch immediately.
Richard Merrett, Managing Director of Alexander Hall, commented:
“Sometimes sticking with a long-term relationship feels like the easiest option, but convenience and uncertainty can keep people going through the motions when there may be a far better alternative available.
This is certainly true in today’s mortgage market. Our analysis shows that product availability has increased substantially over the last year, meaning homeowners now have far more choice than they might expect. By defaulting to the easiest route, some borrowers could end up paying more than they need to.
Concerns around changing circumstances, affordability checks or credit scores often act as a barrier, but this is exactly where a good mortgage adviser adds value. We can give homeowners a clear view of what’s available in the current market, helping them make an informed decision at their own pace, rather than committing out of fear or uncertainty.”
You May Also Enjoy
5 Practical Examples: This is How AI is Changing Real Estate
Overheating moves up the housing agenda
Annual house price growth slows in June
Nationwide House Price Index May 2026
Breaking Property News 1/7/26