The fourth album, Beggar on a Beach of Gold, was a high-water mark in the quality of their material, with both the album and first single "Over My Shoulder" charting well with many considering the album the band's best work.

Their fifth studio album was released in 1999 and was the band's second eponymous album, Mike + The Mechanics. It is generally known as the M6 album, the "Hits" album being their fifth release. As the band no longer had a distribution deal with an American record label, M6 was available as an import only.

After a hiatus following Young's death from a heart attack on July 15, 2000, the band reformed in 2004 as Mike + The Mechanics featuring Paul Carrack, releasing the album Rewired.

In 2007, interviewed during the Genesis reunion tour, Rutherford stated that Mike + The Mechanics had "run its course."