Refinance
Your fixed rate is expiring and rates have risen: what to do
6 min read · By Daniel Lagden · 23 August 2026
When a fixed rate ends your loan does not simply continue at a similar rate. It reverts to the lender's standard variable rate, which is often well above what the same lender offers a new customer. In a market where rates have risen, the gap between the rate you had and the rate you land on can be the largest single jump in your household budget, and it happens automatically unless you act first.
Quick summary: start roughly three months out. Work out what your repayment becomes on the revert rate, ask your existing lender what they will do to keep you, then compare that against the wider market including the cost of switching. Doing nothing is a decision, and it is usually the expensive one.
Why is the revert rate so much higher?
Lenders compete hardest for new business. Retention pricing exists, but it is often applied only when a customer asks, and the standard variable rate a loan reverts to is rarely the sharpest rate that lender has available. That is not a trap so much as a system that rewards the borrower who reviews and quietly charges the one who does not.
What should you do, and when?
- About three months before expiry, find your exact expiry date and the revert rate in your loan documents or by asking the lender.
- Work out the new repayment at that revert rate so you know the real size of the change rather than guessing.
- Ask your existing lender directly what they will offer to retain you, and get it in writing.
- Compare that retention offer against the broader market, counting discharge, settlement and registration costs, not just the rate.
- Decide on structure at the same time: fixed, variable or split, and whether an offset is worth having for how you actually manage money.
- Act before expiry, because a switch takes weeks and the revert rate applies from day one if you are late.
Should you fix again?
Fixing buys certainty and costs flexibility. A fixed loan usually caps extra repayments, may not offer a full offset, and can carry break costs if you need to exit early. In a rising market the certainty is worth more to some households than the flexibility, and the honest answer depends on whether you might sell, renovate or come into a lump sum during the term. A split can be a reasonable middle path where you genuinely want both.
What if you cannot switch?
Not everyone can refinance, even with a perfect repayment history. Rising assessment rates and reduced equity can leave a borrower unable to qualify elsewhere despite never missing a payment. If that is your position, there are still options with your existing lender, and it is worth reading our guide on what to do when you cannot refinance rather than assuming nothing can be done.
Run the numbers
Frequently asked questions
How early should I start looking at my fixed rate expiry?
About three months out. That leaves time to get a retention offer, compare the market and complete a switch before the revert rate applies, since a refinance commonly takes several weeks.
Will my lender tell me before my fixed rate ends?
Most send a notice, but it often arrives close to the date and may simply confirm the revert rate rather than offer you a better one. Do not wait for it to arrive before you start.
Is it worth switching for a small difference?
Sometimes not. Switching carries costs and time, so the saving needs to clear those costs within a sensible period. That break even is exactly what a feasibility check is for.
Run your numbers before the rate reverts
The refinance page carries our feasibility calculator inline, so you can see whether a switch actually clears its own costs before you speak to anyone. Bring your expiry date and current rate and it takes a couple of minutes.
Check whether refinancing stacks upGeneral information only. This article does not take your personal circumstances into account and is not credit advice.
