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3d ago

Nearly 500,000 UK homeowners face up to £510 mortgage payment jump as fixed deals end

Securing a new five-year fixed deal at an average 4.33% rate can reduce repayments by up to £301 per month

A number of banks and building societies are increasing the price of their fixed-rate deals
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This year 469,192 homeowners coming off five-year fixed deals had an average interest rate of 2.11 per cent, figures show (Photo: Rosemary Calvert/Getty)
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Overview

  • Almost 500,000 UK homeowners who locked in five-year fixed mortgages in 2020 will see those deals expire this year.
  • Homeowners automatically moved to their lender’s standard variable rate—currently averaging 7.13%—could face monthly payments of about £1,227, roughly £510 more than under their previous deals.
  • Switching to a new five-year fixed rate at an average 4.33% could trim monthly repayments by up to £301 and save more than £3,600 annually compared with staying on an SVR.
  • Mortgage experts advise starting a remortgage search three to six months before deal expiry and using brokers to access exclusive offers not available to the public.
  • Mortgage rates have climbed from pandemic-era lows near 2.3% to standard variable rates above 7%, amplifying the financial impact when fixed deals expire.