# End of your fixed-rate period? Check this first

> Fixed-rate period ending soon? Compare your bank's offer, lock in your new rate on time and avoid paying more than you need to.

https://www.belderbrandt.nl/en/mortgage-advice/end-of-fixed-rate-period · English

Somewhere between three and six months before your current fixed-rate period ends, a letter from your bank lands on your doormat with a new interest rate offer. Sounds straightforward. It isn't always. That offer is not a final offer but an opening bid, and you only know whether it is a good one once you have set it against the rest of the market. Here is what to do, whether you live in Tilburg-Noord or the Reeshof.

## When does your bank send a new rate offer?

Lenders let you know before the end of your fixed-rate period what your new rate offer is. Exactly when and how varies per lender and per mortgage. So look closely at the date in your offer and the conditions attached to it. If you do not respond in time, your mortgage may be continued or extended under your lender's terms. Check what happens if you do nothing.

## Why you should always compare that offer

Your bank quotes you a rate for existing customers, but that is not automatically the most competitive rate on the market. Rates differ per lender, risk category, fixed-rate period and even per day. On a large mortgage, a small rate difference can have a real impact on your monthly payments. Comparing pays off, but look at the mortgage conditions too, not just the rate.

## Locking in your rate ahead of time

You do not have to wait until your current period ends to find out what your new rate will be. Many lenders will give you a new rate offer earlier, or let you lock in your rate in advance. How far in advance differs per lender. An offer may also come with conditions about which rate ultimately applies if market rates change between the offer and the start date. So read carefully what your lender says about this. A binding offer is covered by statutory rules on the reflection period, but the exact content of the offer still matters.

## Renewing with your bank versus refinancing

Staying where you are is called a rate renewal: easy, little hassle, but not necessarily a good deal. [Refinancing](https://www.belderbrandt.nl/en/mortgage-advice/refinancing-your-mortgage) means switching to another lender with a better rate. The good news: at the end of your fixed-rate period you can usually refinance penalty-free, because the [early repayment penalty](https://www.belderbrandt.nl/en/mortgage-advice/early-repayment-penalty) does not apply at that point. Do pay attention if your mortgage consists of several loan parts that do not all end at the same time: a penalty may still apply to the other parts. Also budget for advice, appraisal and notary fees when you refinance. You usually earn those back within a few years if the rate difference is large enough, but run the numbers before you put your signature on anything.

**From our experience: A 0.7 percent rate difference turned out to be worth €2,800 a year**

We had a client whose fixed-rate period was almost up. They had originally taken out their mortgage with a party that later stopped offering mortgages and transferred its portfolio to another company. That new company was essentially winding the portfolio down and offered its customers no competitive renewal rates. Because a 15-year fixed-rate period was ending, the client received a proposal at a high rate for the next 15 years. By comparing critically, we found the rate could be cut by 0.7 percent. On €400,000, that is €2,800 in interest per year. The total costs for the notary, the appraisal and our advice fee were comfortably earned back. On top of that, the client expected rates to fall, so we fixed the new rate for just one year, leaving room for a further gain if that hunch turns out to be right.

## Talk it through with us, no strings attached

Is your fixed-rate period ending this year or next? Let us take a look before you sign your bank's offer. We will work out whether renewing, refinancing or locking in early gives you the best result, specifically for your situation in Tilburg and the surrounding area. Call 06 52 69 88 22 or email Martin@belderbrandt.nl for a no-obligation consultation.