More than half of homeowners, or 52%, with a fixed, tracker or discount mortgage are on deals that need to be renewed within the next two years, with some expecting to face rises of almost £700 a month, data from The Mortgage Lender shows.  

It adds that, 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.  

The data comes after the Bank of England continued its run of rate hikes by lifting the interest rate by 75 basis points, the biggest rise since 1989, to 3%, earlier this month.   

The move is designed to combat rising inflation, which stands at 11.1%. In November, the base rate was 0.1%.  

The lender’s report points out that the rises have left “consumers prepping for hikes in their mortgage costs”.  

It says 25% of those with a mortgage expect their mortgage costs to rise.   

Among those that expect their mortgage rates to rise in the next two years, the average they expect their monthly mortgage payments to rise by comes to £441.   

This surges among 18-to-34-year-olds, with those who expect their mortgage rates to rise by £689 per month over 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.   

It adds: “Mortgage borrowers will therefore 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.”  

However, average two- and five-year fixes have fallen from highs in October, according to Moneyfacts data last week.   

The average rate for a five-year fix has fallen to 5.95% last Friday, data from Moneyfacts shows.  

At the start of this month, it stood at 6.32% and, at the end of October, the average rate for a five-year fix had been priced at 6.51%.  

The two-year fixed average rate has also fallen across the same time frame, although it is some way off the 6% mark. As of Friday, it was 6.13%, having fallen from 6.47% at the start of this month.  

The Mortgage Lender head of sales Steve Griffiths says: “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.  

“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.”