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Half a million face mortgage rate spike

  • TNJ Mortgages
  • Jul 24
  • 1 min read
Almost half a million homeowners coming off five-year fixed rate mortgage deals taken out in 2020 could see a major spike in their monthly mortgage repayments.
Almost half a million homeowners coming off five-year fixed rate mortgage deals taken out in 2020 could see a major spike in their monthly mortgage repayments.

These borrowers have been paying an average interest rate of just 2.11%. However, if they revert to their lender’s standard variable rate (currently averaging 7.13%) when their deal comes to an end, their monthly repayments could soar to £1,227 on average, a jump of £510 a month or another £6,000 a year.


Although rates have eased from recent peaks, they remain higher than the ultra-low levels seen during the pandemic. Borrowers who secured low-cost deals in 2020 are likely to face a payment shock. As a result, we advise shopping around, with our help, rather than automatically switching to your lender’s standard variable rate. Locking in a new five-year fixed rate at 4.33% could save over £3,600 a year, while a two-year fix at 4.6% could save around £3,290.


It’s important to review your options early. Many lenders allow borrowers to secure a new deal up to six months in advance, helping to avoid last-minute panic and potentially saving thousands in the process.


Your home may be repossessed if you do not keep up repayments on your mortgage


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5 Burnaston Close,
Dronfield Woodhouse,
Derbyshire, United Kingdom, S18 8QU
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TNJ Mortgages is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm reference number 987477.

Registered address: TNJ Mortgages Limited, 5 Burnaston Close, Dronfield Woodhouse, Dronfield, Derbyshire, United Kingdom, S18 8QU. Registered Company Number: 12932104 Registered in England & Wales

Your home may be repossessed if you do not keep up repayments on your mortgage. As with all insurance policies, conditions and exclusions will apply

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