Borrowers who revert to their lender’s standard variable rate could face rates nearly 2 per cent higher than their current fix, says Moneyfacts.

Moving to a two-year fix today could save a borrower with a £150,000 mortgage over £3,5000 and, on a five-year fix, over £8,000, the finance website has worked out.

Moneyfacts warns that many people who have faced a negative financial impact from the pandemic plan to revert to their SVR, however.

It has provided data showing that the average two-year fix taken in March 2019 was set at 2.49 per cent across all LTVs and, by 1 March this year, the average SVR is 4.41 per cent – a 1.92 per cent difference.

And the average five-year fix across all LTVs taken out in March 2016 was 3.24 per cent, which makes for a 1.17 per cent difference.

Currently, the average two-year fix has an average rate of 2.57 per cent – while higher than its counterpart from two years ago, this is a 1.84 per cent difference against the SVR.

The five-year fix today is 2.75 per cent – a 1.66 per cent difference compared to the SVR.

Moneyfacts also notes that between March 2020 and March 2021, the average product fee has moved up from £1,040 to £1,067 – but deals with no product fee do make up 34 per cent of the fixed rate market – down slightly from 40 per cent a year ago.

Moneyfacts finance expert Eleanor Williams says: “Households may have found themselves impacted by the coronavirus pandemic in different ways; some have been fortunate to maintain a stable income and have been able to save money, but many have had their household income adversely impacted. One way to save some cash could be to remortgage, especially if a borrower is on an SVR.

“The Equity Release Council has stated that homeowners have overpaid more than £5billion of mortgage debt in the final quarter of last year, so those who secure a remortgage could then consider using some of the cash they have saved from their monthly SVR payments to reduce their outstanding debt and thus could save even more in interest overall.”

“Undoubtedly, although there may be those currently struggling financially, it would be unwise for borrowers to assume that they would not be eligible for a new mortgage, even if their existing lender is unable to offer a new deal. Seeking independent advice from a broker who is up to date on the ever-changing mortgage sector could unveil options which may save them significant sums.”