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 deals.
These mortgage holders, who have so far been shielded from rising rates, currently hold deals with an average interest rate of 2.11%, 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 the average SVR reach 7.48% in the most recent data.
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!
Sources: Compare the Market, 2025; Moneyfacts, 2025
🚨 Data accurate as of the date of publication
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Planning – Essentially Mortgages Q3 2025
