My fixed-rate mortgage deal is coming to an end. What should I do?

Hold tight. There are now barely any tracker deals left on the market but new deals are expected next week, albeit with higher rates.

Are trackers the best option or are fixed-rate deals falling too?

With further base rate cuts on the horizon, it could still be worth picking up a new tracker deal. Fixed-rate mortgages are expected to carry on falling as the wholesale money markets that banks use to fund new fixed-rate lending ease. However, if you would prefer the security and peace of mind of a fixed-rate deal, sit on your existing standard variable rate (SVR) and wait for fixes to fall. With lenders under enormous pressure from the Government and homeowners to cut their standard variable rates in the coming days, reverting to your lender’s SVR may not be as much of a shock as previously feared.

During the summer I locked myself into a three-year, fixed-rate deal at 6.39 per cent. Is there a way I can benefit from yesterday’s cut?

If you are fixed into a longer-term deal it might now be tempting to see if you can secure a new deal at a cheaper rate, even though the cost of getting out of an existing mortgage deal is high. Switching from a three-year fixed-rate deal with a rate of 6.39 per cent to a three-year deal at a rate of 4 per cent would save you £4,117, according to Moneyfacts.co.uk, even taking into account a 3 per cent early redemption fee.

My lender hasn’t passed on the full cut to its standard variable rate. Should I consider switching lenders?

It may be worth waiting to see if your lender does reduce its SVR. But if you are still waiting for news from your lender by the end of next week, give them a call.