Mortgage holders looking at big monthly payment increases

September 14, 2026 by Brendan O'Neill

Home owners

Over one million mortgage holders are staring down the barrel of big increases in their payments.

Compare the Market has released figures showing there are 1,095,905 people who went onto two-year fixed rate deals in 2024. Those are now coming to an end and will create a major financial shock for these households. The average rate during this two-year period was 4.81%. For mortgage holders who automatically switch to their lender’s standard variable rate (SVR), payments could rise by £283 per month. The average monthly payment for a mortgage of £200,000 is currently £1,432.

Mortgage holders who fall into this category include both those buying for the first time and people moving house. There are 122,526 of the former and 111,349 of the latter. There are also 690,738 remortgage customers and 122,832 product switchers.

Those who go onto the SVR will be paying higher amounts even though mortgage rates as a whole are falling. The data from Compare the Market shows that the average lender SVR stood at 7.13% during July. This could see annual mortgage bills go up by £3,000.

Sajni Sha works for Compare the Market as one of its experts. She spoke to Mortgage Strategy about the figures:

“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.”

Mortgage advisors who have a CeMAP qualification will always get customers to explore their options before this happens.