More than one million homeowners face £283 monthly increase in mortgage payments

More than one million homeowners face £283 monthly increase in mortgage payments 1,095,905 homeowners who took out mortgages in 2024 are set to come off two-year fixed deals that had an average interest rate of 4.81% More than a million homeowners face paying £283 extra in monthly mortgage payments as they come off cheaper fixes. New data from Compare the Market shows 1,095,905 homeowners who took out mortgages in 2024 are set to come off two-year fixed deals that had an average interest rate of 4.81%. In comparison, the latest Moneyfacts figures show the average standard variable rate (SVR) was 7.13% in July 2026. You normally roll on to your lender's SVR when your fixed deal ends - but this generally has the most expensive rates. The research shows any of these homeowners who move from a cheaper fix to their current lender’s SVR could see their monthly payment could jump from £1,149 to £1,432 – a £283 increase. This is based on an average mortgage debt of £200,250. Homeowners would pay £17,184 annually compared to £13,788 on their previous two-year fixed rate - an increase of more than £3,000 extra a year. However, households could avoid these higher repayments by shopping around for a new mortgage deal. Switching from the current average SVR of 7.13% to a new two-year fixed rate mortgage with an average rate of 4.79% could result in up to £3,432 in savings per year. Laura Pomfret, Personal Finance Expert at Compare the Market, said: “A mortgage is likely to be the biggest outgoing in any household, so it’s worth paying attention to and looking for great savings for your budget. “When a fixed mortgage deal is coming to an end, it’s a good opportunity to look at your finances as a whole. Understanding what your new repayments could be ahead of time means you can plan for any increase and consider where you might need to adjust your budget.“ How to save money on your mortgage You can normally start looking for a new mortgage deal three to six months before your current one expires. Start by using an online comparison tool, or by speaking to a mortgage broker, as they will often have access to deals that aren't available on the open market. You should also speak to your current lender to see what rates it can offer you. This is known as a product transfers, which is where you get a new deal from the same lender. When looking for a new deal, it is important to get all the relevant information about your existing deal - such as the rate you are on and your loan to value (LTV). This is the amount you are borrowing compared to the property's value.