By clicking a retailer link you consent to third-party cookies that track your onward journey. This enables W? to receive an affiliate commission if you make a purchase, which supports our mission to be the UK's consumer champion.
Cheap two-year fixed rate mortgages ending: act now to avoid a bill shock
If you took advantage of record low mortgage rates two years ago, you need to act fast to avoid a blow to your budget.
Borrowers who took out a two-year fixed-rate deal in January 2017 secured an average rate of 2.31%, and have been enjoying relatively low repayments ever since.
That's set to change, however, with these deals now reaching the end of their introductory terms and being moved to the lender's standard variable rate (SVR).
And with SVRs currently averaging 4.9% - a five-year high - many homeowners could see their mortgage bills jump by hundreds of pounds a month.
Which? explains what you can do if your fixed-rate period is expiring and offers advice on the cheapest remortgage deals currently available.
How much is your mortgage bill going up by?
The exact amount your mortgage bill will rise depends on the rate you fixed it at and your lender's current SVR.
Below, we've modeled how much your bill could increase, based on the average rate of 2.31% from two years ago and today's average SVR of 4.9%.
| Original mortgage debt | Monthly payments now (2.31%) | Monthly payments in February (4.9%) | Rise in monthly payments | Total additional cost over 12 months |
| £100,000 | £439 | £579 | £140 | £1,676 |
| £200,000 | £878 | £1,158 | £279 | £3,352 |
| £300,000 | £1,317 | £1,736 | £419 | £5,028 |
| £400,000 | £1,756 | £2,315 | £559 | £6,704 |
| £500,000 | £2,196 | £2,894 | £698 | £8,380 |
Source: Which? Mortgage Repayment Calculator. Based on a 25-year mortgage term.
To figure out the exact impact of rate rises,use the Which? Mortgage Repayment Calculator. All you'll need is your current rate and your lender's standard variable rate.
How to avoid a mortgage bill shock
You should double check when the introductory period on your fixed-term deal expires and ensure you have a plan to avoid being dumped onto your lender's SVR.
Your provider should contact you to let you know you are about to revert onto the standard rate, but there's no need to wait around for this warning, as you can usually lock in a new deal six months in advance.
Once you know when your mortgage deal ends, you should see what rate your lender will offer you and shop around to compare deals from other providers.
- Find out more: use our guide on remortgaging to find out everything you need to know about the process.
The best two-year fixed-rate remortgage deals
Currently, the average two-year fixed rate mortgage is priced at 2.52%, so you may not be able to find a deal quite as cheap as your original loan.
Nonetheless, taking action to secure the best rate is crucial if you want to keep your mortgage payments manageable.
Below we've set out the best two-year fixed-rate remortgage deals currently available across different loan-to-value ratios.
