Rates
What happens at the end of my fixed rate period?
When your fixed period ends, your UAE mortgage automatically reverts to the bank's variable revert rate, typically EIBOR plus a margin, which is often higher than your fixed rate. Around three to six months before this date, you can renegotiate with your current bank, refinance to another bank, or simply let it revert if the rate is competitive.
The automatic switch
Most UAE mortgages don't require action at the end of a fixed period — they simply revert to a variable rate set by the bank. The problem is that revert rates are often higher than the fixed rate you were paying, sometimes significantly so, which can mean a payment jump you didn't budget for. Banks rarely proactively flag this in advance, so it's on you to track your own fixed-period end date.
Your options before the switch
- Ask your current bank for a new fixed-rate offer (retention rate)
- Refinance to a different bank with a better rate — this is a mortgage buyout
- Do nothing and accept the revert rate, if it's genuinely competitive
- Make a lump-sum overpayment before the switch to reduce the balance the new rate applies to
Timing matters
Start comparing options three to six months before your fixed period ends, since a refinance application, valuation and approvals take time. Waiting until the revert rate has already kicked in means you've paid the higher rate unnecessarily while switching. See when to refinance in the UAE for a fuller timeline.
A simple pre-revert timeline
| Time before revert date | Action |
|---|---|
| 6 months | Note the date, start gathering documents |
| 3-4 months | Compare your bank's retention offer against the market |
| 2-3 months | Apply for refinance if switching, or confirm renewal terms |
| 0-1 month | Complete settlement or renewal before the revert date |
How to decide
Compare your bank's retention offer against the open market using a mortgage calculator, and factor in refinance costs versus the saving from a lower rate over your remaining term. If the gap between the retention offer and the best market rate exceeds the switching cost, a buyout is usually worthwhile.
Run the numbers on your own case
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Last reviewed 25 June 2026