The warning comes after a number of lenders announced hikes to their SVR (Standard Variable Rate) rates which come into force on May 1.
Analysis has 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.
The number of SVR rises announced by lenders recently , come into effect in May.
About one million customers will be affected by these increases announced by providers including 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.
Mortgage rates are nudging upwards, there is no doubt about that 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.
Any 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.
Consequently 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 base rate doesn’t.
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.
Mortgage rates are nudging upwards, there is no doubt about that 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.
Any 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.
Consequently 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 base rate doesn’t.
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