Martin Lewis has issued an important warning to homeowners whose mortgage deal is ending within the next 12 months, urging them to take action six months before their current rate expires.
Speaking on ITV1's This Morning, the money expert explained that borrowers can often secure a new fixed-rate mortgage up to six months in advance, potentially allowing them to lock in a rate without having to start paying it immediately.
He said homeowners should contact a mortgage broker at that six-month point rather than leaving it until just two or three months before their deal ends.
The advice comes as financial markets suggest the Bank of England could raise interest rates several times over the next year, putting pressure on mortgage costs.
Martin said: "Six months from the date it ends is the time you need to start acting. That's the time I'd be going to a mortgage broker.
"And this is the reason why: you can usually book a fixed rate up to six months in advance, which means you can get a new rate to start the day your existing mortgage ends.
"You can book it in. Yeah. But if rates were to improve in the meantime, you would be able to get rid of it and get a new fixed rate that was cheaper.
"If rates get worse in the meantime, brilliant."
Martin Lewis explains why you should act six months early
The key advantage of arranging a new mortgage deal in advance is that it can give borrowers some protection if rates rise before their current deal ends.
If cheaper deals become available before the new mortgage starts, borrowers may also be able to switch to a better rate. However, this depends on the lender's terms and conditions, so it is important to check whether a new product can be booked and the existing one replaced without a charge.
Martin warned that many homeowners leave their arrangements too late.
He said: "So many people leave it until two or three months before, especially in an upward-rate environment as we have now.
"Remember, it's predicted there could be four base-rate rises. That's what the markets are suggesting over the next year.
"The sooner you go and do this, the sooner you lock in the security of a fixed rate.
"You need to do it in a way that you're able to get out of it if rates improve. A mortgage broker will be able to advise you on all of that."
The expert said borrowers should seek advice on the options available to them, rather than assuming that booking a rate early will automatically mean they can switch without restrictions.
The date Martin Lewis says to put in your diary
Martin said homeowners should make a note of the six-month point before their current mortgage deal expires, so they do not forget to start looking at their options.
He said: "That's what you should be doing right now.
"There are well over one million people out there who are in that position.
"Put a big red line in your diary six months before your deal ends, or a reminder on your computer saying, 'Sort my mortgage today.'
"The longer you leave it, especially in this environment with the base rate predicted to rise in November, the riskier it gets."
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What should you do if your mortgage deal is ending?
- If your current fixed-rate mortgage ends within the next year, Martin's advice is to work backwards from the expiry date and contact a mortgage broker six months beforehand.
- For example, if your deal ends in October 2027, you should aim to start exploring your options around April 2027.
- A broker can help you compare available deals, understand the lender's rules on switching to a cheaper rate later and check whether fees or early repayment charges could affect your decision.
- Borrowers should also check the terms of their existing mortgage and consider the overall cost of a new deal, including arrangement fees, rather than comparing interest rates alone.
The central message is to avoid leaving the search until the last few months. Booking a suitable rate in advance may offer reassurance if rates rise, while keeping an eye on the market could help borrowers take advantage if better deals become available.
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