According to analysis by The Mortgage Lender (TML), which surveyed around 2,000 adults, of those that need their deals renewed in the next two years, 55 per cent on are two-year fixed rates. Around 39 per cent are on five-year fixed rate deals.
TML said that with recent Bank of England interest rate hikes to curb inflation, homeowners could be faced with increased costs when they renew their mortgage.
The research added that a quarter of those surveyed were expecting their mortgage costs to rise, and the average amount they expect their monthly mortgage payment to rise by was as much as £441.
This increases amongst the 18 to 34-year-old age bracket who expect the average mortgage payments to increase by £689 per month in the next two years.
The lender added that borrowers will be considering their options on whether to secure a new deal now or wait and see what the Bank of England will do to interest rates and how that will impact mortgage pricing.
TML: ‘Assess options as early as possible’
Steve Griffiths (pictured), TML’s head of sales, said: “Mortgage borrowers will continue to keep a keen eye on the Bank of England’s base rate decisions over the coming months to see how it could impact their future borrowing costs.
“A mortgage is one of the biggest financial commitments an individual can make, so weighing up whether to fix now or not can be a tricky decision to commit to.”
He added that many borrowers were getting on top of potential increased costs by speaking to a mortgage broker.
Griffiths said that borrowers can review deals as early as six months in advance of deals coming to an end, so “assessing what options are available now is certainly a sensible move”.
He continued: “Brokers can offer invaluable support and guidance as consumers try and navigate the market and can help provide a holistic view of what deals are most suitable for clients before rushing into any decisions.”
