| Nearly 470,000 homeowners face steep mortgage hikes as their fixed deals expire this year | Moving to your current lender’s standard variable rate could increase payments by £510 monthly | Homeowners are not obliged to stay with their lender’s SVR, so seek professional advice |
Some 469,192 homeowners who took out a mortgage in 2020 are set to face hefty rises in monthly repayments at the end of their five-year fixed rate deals1.
These mortgage holders, who have so far been shielded from rising rates, currently hold deals with an average interest rate of 2.11%, the analysis shows. This means that, if they were to move to their current lender’s standard variable rate (SVR), payments would jump by a whopping £510 a month on average.
Rates a-rising
Since 2020, average mortgage rates have soared, as global events, including the pandemic, rampant inflation and trade tensions, have conspired to push the cost of borrowing higher. After a decade of ultra-low rates, a steady rise has seen average SVR reach 7.48% in the most recent data2.
Not all doom and gloom
The good news is that homeowners are not obliged to stay with their lender’s SVR. Indeed, the research revealed that switching to an average new five-year fixed rate mortgage could result in up to £3,618 in savings per year! Get in touch to find out how we can help.
1Compare the Market, 2025, 2Moneyfacts, 2025
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.