More than one million UK homeowners are approaching the end of a two-year fixed-rate mortgage—and those who take no action could face a sharp increase in their monthly payments.

Analysis from Compare the Market suggests that a homeowner moving automatically onto their lender’s standard variable rate (SVR) could see their payments rise by around £283 per month. That is an additional £3,396 over a year.

The message is simple: if your mortgage deal is ending, don’t wait. Act now and arrange a review.

Why could mortgage payments increase?

Many homeowners took out two-year fixed-rate mortgages during 2024. When these deals expire, borrowers who have not arranged a new mortgage will usually move onto their lender’s SVR.

The average SVR stood at 7.13% in July 2026, compared with an average two-year fixed mortgage rate of 4.79%.

Based on an average outstanding mortgage of £200,250, the estimated monthly payments were:

• Average SVR: £1,432 per month

• Average two-year fixed rate: £1,146 per month

• Potential difference: £286 per month

• Potential annual difference: £3,432

These figures are only illustrations. The actual difference will depend on your outstanding balance, remaining mortgage term, property value and the products available to you.

More than one million homeowners could be affected

The research estimates that 1,095,905 homeowners are due to reach the end of a two-year fixed mortgage deal.

This includes:

• 122,526 first-time buyers

• 111,349 home movers and second-time buyers

• 690,738 homeowners who previously remortgaged with their existing lender

• 122,832 homeowners who moved their mortgage to another lender

Not everyone will face the same increase, but allowing a fixed deal to expire without reviewing the available options could result in unnecessarily higher payments.

Don’t leave your mortgage review until the last minute

You do not need to wait until your current mortgage deal has ended before looking at your options.

In many cases, a new mortgage can be arranged several months in advance. Starting early gives you more time to:

• Compare your existing lender’s offers with the wider mortgage market

• Consider whether a fixed, tracker or variable rate is suitable

• Review your mortgage term and monthly payments

• Check whether your circumstances still meet lenders’ criteria

• Complete the application before your current deal expires

Waiting until the final few weeks can reduce the time available to consider your options and increase the risk of moving temporarily onto the SVR.

Your existing lender may not offer the best option

Staying with your current lender can sometimes be convenient, but convenience does not always mean receiving the most suitable deal.

A full mortgage review can compare your existing lender’s product-transfer options with mortgages available from other lenders. Any arrangement fees, valuation costs, legal work and early repayment charges should also be considered before deciding whether switching is worthwhile.

The lowest interest rate is not automatically the best overall mortgage.

Act now and arrange your mortgage review

If your fixed mortgage deal is due to end within the next six months, now is the time to start planning.

Chetwood Lloyd Mortgages can review your current mortgage, compare the available options and explain everything clearly before you make a decision.

Don’t wait until your payments increase. Get in touch today to arrange your mortgage review.