Halifax or Lloyds mortgage borrower? You'll soon have less time to lock in a new rate before your current deal expires

Nearly every UK mortgage lender had allowed existing borrowers to lock in a new rate up to six months before their current deal ran out following the introduction of the Government's 'mortgage charter' in June 2023. This support was designed to give borrowers greater flexibility at a time when mortgage rates were volatile. Prior to 2022/23, four months had been a typical product transfer window.

But Halifax and Lloyds are reducing this six-month period, citing calmer market conditions. This follows Nationwide and Santander, which reduced their product transfer windows to four months in May and June respectively.

Fixed mortgage rates have been getting steadily cheaper over the past couple of months. Two- and five-year fixed deals for those looking to remortgage currently start from 4.25% and 3.88% respectively. The Bank of England also cut the base rate from 5.25% to 5% on 1 August.

Some major lenders still let you lock in a new deal six months ahead

Half of the major lenders we asked are still offering six-month product transfer periods, as you can see from the table below.

It's often sensible to start the mortgage-switching process early

If your mortgage deal is ending, check how far in advance you can lock in a new rate beforehand. This applies whether you're getting a new deal from your existing lender (a 'product transfer') or from a different lender entirely (a 'remortgage').

Not only does locking in early prevent you from rolling on to your lender's standard variable rate (SVR) – which is likely to be around 7% to 8%, it can also act as insurance against interest rates rising before your current deal ends. If rates fall, you can often ditch the mortgage you secured early without paying a penalty and get one at a lower rate.

Need a new mortgage? Use our Product transfer tool to see the best new rates your lender is offering.

Watch to watch out for when locking in early

Before locking in a new mortgage deal early – be that a product transfer or remortgage – check the following:

• Do you need to pay fees upfront to secure the rate? If so, you're less likely to be able to ditch the deal penalty-free if a better rate comes along in the meantime.

• Do you need to ditch the rate within a set period? Most lenders won't let you ditch a deal 14 days or less before the new rate is about to start. So, factor this in.

• Do you have two new mortgages set to start concurrently? This can happen if you lock in a new rate with your existing lender, then decide to get a new deal from a different lender, but forget to cancel the one you don't want. In this scenario, you may need to pay an early repayment charge (which can cost £1,000s) if you leave cancelling too late.

See our Product transfer mortgages guide for more on how a product transfer compares to a remortgage. If you're considering a remortgage, see our Getting ready to remortgage guide for information on what it involves.