Acting now could save mortgage borrowers £1bn, says Halifax
18 September 2025
- Around 135,000 fixed rate mortgages taken out in the last three months of 2020 on super-low rates are due to mature this year
- Without taking a new deal these rates could triple to an average rate of 6.9%
- Remortgaging on to new fixed rates could save over £700 per month
Historically low fixed rates ending
Mortgage borrowers whose current fixed rate deals are maturing in the next three months could avoid a £1bn bill if they act now, Halifax advises.
An estimated 135,000 5-year fixed rate mortgages (see Editors’ Notes) were taken out in the last three months of 2020 at rates near historic lows. Fixed rate deals during the final quarter of 2020 were available at under 2%, with longer term 5-year loans an average of 2.4%.
Monthly payments jump
Based on an average 25-year loan advance of £210,000, monthly repayments on a 5-year deal fixed at 2.4% were set at £932 in late 2020. With an Interest Only loan on the same terms, payments would be £420. However, those deals are due to end and Halifax are encouraging borrowers to act now and avoid unnecessary costs.
At the end of their fixed rate deals, these borrowers could see the interest rate they pay almost triple as they move on to their lender’s “standard variable rate” (SVR). The average SVR is now around 6.9% and, with a remaining debt of around £177,000, would cause monthly repayments to jump to £1361 per month: a rise of £429. For Interest Only loans, the monthly payments increase by £788.
Act now to save hundreds
Though interest rates have not returned to their all-time lows, there are still good, fixed rate deals available that will soften the effects of super-low rates ending.
Remortgaging a repayment mortgage to a Halifax loan (4.24% fixed for 5 years, no fee) could save over £260 each month compared to moving on to the average lender’s standard variable rate, with repayments of £1095. Interest Only mortgage customers’ payments would be £773, more than £430 lower than being on the average SVR (See Editor’s Notes for full rate details).
