Mortgage renewal offer

The key points at a glance

A renewal offer is sent by your bank so you can choose a new fixed-rate period. On this page we'll walk you through what a renewal offer involves and what options you have.

1. What is a renewal offer?

Have you received a renewal offer from your bank, or heard about them and want to know what to expect? It's a proposal from the bank that lets you choose a new fixed-rate period. If you don't want to accept the bank's renewal offer, you can decide to remortgage to a different provider. Bear in mind that there may be costs involved.

2. When do you receive a renewal offer?

You'll generally receive the renewal offer from your bank one to a few months before your current fixed-rate period ends. If your rate expires in May, for example, there's a good chance you'll receive an offer in February, March or April to fix the rate again for a new period. You'll typically receive a table showing different fixed-rate periods and the corresponding interest rates. Of course, you can discuss with your mortgage adviser or the bank whether to accept the renewal offer or whether to consider other options. Compare mortgage rates here!

3. Single-track or dual-track rate

In most cases today, the renewal offer rate is the same as what new customers would pay if they took out a mortgage at that moment. This is known as a single-track rate, which means existing customers don't pay more than new ones. If a bank uses a dual-track rate, something we mainly saw in the past, your renewal offer may show higher rates than those for new customers, which often makes it worthwhile to remortgage to a different provider.

4. Accept the renewal offer or remortgage

When you receive a renewal offer from your bank, you have plenty of time to think it over or discuss it with your mortgage adviser. The renewal offer will show an expiry date, so make sure you let the bank know before then whether you want to accept. You can use the renewal offer to take out a new fixed-rate period with your current provider. If you don't want to accept, you can use the renewal offer to compare rates with the interest rates other providers would charge you. Want more information about a mortgage renewal offer? Request a conversation with a mortgage adviser today!

Frequently asked questions

What is a renewal offer?

At the end of a fixed-rate period, the bank sends a renewal offer, usually based on the current interest rates that apply to new customers.

When will I receive a renewal offer?

You'll usually receive the renewal offer one or a few months before the fixed-rate period expires.

Do I have to accept a renewal offer?

No, you have the choice between accepting the offer or remortgaging to a different provider.