Average fixed rates have recently crept up and borrowers on SVRs should be wary of future rises and look to fix sooner rather than later.
The warning comes from comparison website MoneySupermarket after a number of lenders announced hikes to SVR rates which come into force on May 1.
Analysis by the site found that the average rate for two-year fixes hit a low last October, falling to 3.82%, but has now risen to 4.15%.
This means a difference of £27.31 per month or £327.72 over the year for repayments based on a £150,000 mortgage.
Similarly, five-year fixed rates hit a low in January this year with an average rate of 4.57% but this has crept up to 4.72%, adding an extra £12.81 per month or £153.72 over the course of a year.
For two-year trackers, the average rate was at its lowest in August 2011 at 3.37% but now stands at 3.63%, hitting consumers with an extra £20.91 per month payment or £250.92 over the year.
About one million customers could be affected by these SVR increases in May including Lenders such as Halifax, Co-Operative Bank, Bank of Ireland and RBS/NatWest.
Overall, the average increase to SVRs is 0.62% which will add an extra £52.58 to a £150,000 mortgage or £630.96 over the year.
Clare Francis, mortgage spokesperson at MoneySupermarket.com, said: “Mortgage rates are nudging upwards, so anyone looking for a mortgage or whose mortgage deal will end in the next few months should act sooner rather than later to secure one of the current rates in case they rise further.
“Borrowers paying their lender’s SVR should also reassess their mortgage arrangements. One of the consequences of the low base rate has been the fact that SVRs have been similar to the rates on new mortgage deals and in some cases the SVR has been even lower.
“As a result, an increasing number of people have opted to stick with their existing lender and move on to the SVR when their fixed or introductory tracker or discounted period ended, as opposed to remortgaging elsewhere.
“However, as around one million borrowers are about to find out, many SVRs can rise even if the base rate doesn’t.”
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