Half (52%) of homeowners with a fixed, tracker or discount mortgage are on deals that need to be renewed within the next two years, The Mortgage Lender has indicated.
Of those whose deals are coming to an end within the next two years, 55% are on two-year fixed rate deals and 39% are on five-year fixed rate deals.
This means many will have to tighten the purse strings when that happens.
While mortgage rates have seen some small reductions in the past month, they have still been on an upward trajectory for much of this year, while they skyrocketed to north of 6% after the mini-budget in September.
Steve Griffiths, head of sales at The Mortgage Lender, 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.
“Fortunately, many borrowers are getting on top of potential increased costs by speaking to their mortgage broker to help find the best deals for them.
“Borrowers can review their deals as early as six months in advance of them coming to an end, so assessing what options are available now is certainly a sensible move.
“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.”
A quarter (25%) of consumers are expecting their mortgage costs to rise. Among those that do in the next two years, they typically expect to spend £441 more per month.
This surges among 18-34 year olds, with those who expect their mortgage rates to rise by £689 per month in the next two years.
The research also found that 25% of overall homeowners are currently on fixed term mortgage deals, with 15% on five-year fixes and 10% on two-year fixes.
Mortgage borrowers will be weighing up their options on whether to lock in a new deal now or to sit tight and see what the Bank and mortgage rates do next.
