Mortgage rates rise as fixed deals expire

Nearly 469,192 homeowners who secured mortgages in 2020 are facing significant increases in their monthly payments as they transition from low fixed rates to higher standard variable rates (SVRs). The average interest rate for these fixed deals was 2.11%, but current rates exceed 4%. Homeowners with an average mortgage debt of £178,523 could see their monthly payments rise by £510, from £766 to £1,277, resulting in an annual cost of £15,319 compared to £9,195 previously. David Hollingworth, associate director at L&C Mortgages, commented: "Although many homeowners have had to deal with the payment shock of their ultra-low fixed deal ending, fixed rates have improved recently as the rate outlook has improved." Experts recommend that borrowers seek timely advice to secure new deals before the switch to avoid high SVRs. 

Daily Mail (29/05/2025)   The I (29/05/2025)