An average homeowner on a standard variable rate (SVR) could save more than £5,000 in payments by moving onto a new two-year fix, analysis by Experian shows.

The calculation assumes a 20-year mortgage loan of £150,000 on an SVR of 4.49%, which has a monthly repayment of just under £950.

On a new two-year fix at 1.11%, and assuming an arrangement fee of £999, saves the borrower over £5,000 across that two-year period.

Experian adds that nearly 6% of all homeowners will be coming to the end of their fixed term within the next three months.

“With an interest rate rise looming, it would be worthwhile to explore your options now and get a new rate locked in,” says Experian head of consumer affairs James Jones.

He adds: “With Christmas fast approaching, it’s that time of year when lots of us look for ways to make our money go further – but many overlook opportunities to cut the cost of existing borrowing.

“Homeowners may be able to secure substantial savings by switching to a new fixed-rate mortgage deal, so we urge anyone with a fix ending soon to look into their options.”

And L&C mortgages associate director of communications David Hollingworth comments: “There remain competitive deals on the market, but if expectation of an interest rate rise persists then the deals currently available might not be around for too much longer.

“Use a mortgage comparison to check whether you are on the cheapest deal, or if money can be saved by using another company’s offer.

“When thinking about the switch remember to factor in any other costs and check if there is an early exit fee associated with your current deal. However, shopping around could help to save thousands of pounds over a short period of time.”