Over a million homeowners face £283 monthly mortgage hike – Mortgage Strategy
More than one million homeowners face big hikes to their monthly mortgage repayments after rolling off cheaper two-year deals, according to data from Compare the Market.
The data shows that 1,095,905 homeowners who took out mortgages in 2024 are now coming off two-year fixed rates with an average interest rate of 4.81%.
This includes 122,526 first-time buyers and 111,349 home movers or second-time buyers.
It also includes 690,738 homeowners who previously remortgaged with their current provider and 122,832 who remortgaged with a new provider.
Any of these homeowners who move onto their current lender’s standard variable rate (SVR) could see their monthly payments jump to £1,432 – a £283 increase, based on an average mortgage debt of £200,250.
This is equivalent to paying £17,184 annually compared to £13,788 on their previous two-year fixed rate, meaning they could be paying more than £3,000 extra each year.
Homeowners coming off these fixed rate deals will typically have to pay more, despite mortgage rates having generally fallen since 2024, in line with the Bank of England base rate. The latest Moneyfacts figures show the average SVR was 7.13% in July 2026.
| Average SVR (July 2026) | Average two-year fixed rate (2024) | Average two-year fixed rate (July 2026) | |
| Average interest rate | 7.13% | 4.81% | 4.79% |
| Monthly repayments | £1,432 | £1,149 | £1,146 |
| Annual repayments | £17,184 | £13,788 | £13,752 |
| Annual saving compared to SVR | £3,396 | £3,432 | |
| Monthly savings compared to SVR | £283 | £286 |
*Based on an average mortgage debt of £200,250 per household and 25-year term, does not take into account individual circumstances and additional product fees
Compare the Market money expert Sajni Shah said: “More than one million homeowners are coming to the end of two-year fixed-rates this year, and many could face a significant increase in their monthly repayments if they simply roll onto their lender’s standard variable rate.”
