1.1 Million Homeowners Face Mortgage Payment Spikes

Compare the Market reports that approximately 1.1 million homeowners who secured two-year fixed-rate mortgages in 2024 are facing significant payment increases as their deals expire. Borrowers who held an average interest rate of 4.81% risk rolling onto standard variable rates, which Moneyfacts Group reported averaged 7.13% in July 2026.

For a typical mortgage debt of £200,250, monthly payments could jump from £1,149 to £1,432. This represents a monthly increase of £283 and an annual cost rise of over £3,000.

Financial experts advise homeowners to avoid these costs by shopping for new deals. Switching to a new two-year fixed rate, which averages 4.79%, could potentially save households up to £3,432 per year compared to the standard variable rate. Laura Pomfret, a personal finance expert at Compare the Market, noted that because a mortgage is often the largest household outgoing, homeowners should use the end of a fixed deal as an opportunity to review their overall finances.