Switching from an average standard variable rate (SVR) to a new fix could save more than £2,200 a year, calculates L&C Mortgages.

The broker says that with SVRs increasing to an average of 3.91%, a fixed rate of 1.36% would cut a “typical” monthly mortgage payment – this being on a £150,000 repayment deal over 20 years – by £187.67, providing an annual saving of £2,252.

L&C believes that more rate rises “are on the cards” with inflation continuing to rise.

L&C Mortgages associate director David Hollingworth sets this saving against this inflationary factor. He says: “It’s easy to focus on the costs that are climbing rapidly like energy bills and many homeowners will feel the pinch due to the price cap rise in April, when council tax and National Insurance changes will also begin to bite.

“Many of these elements are out of our control, but the mortgage is often a substantially higher outgoing and could offer a silver lining for homeowners.

“Fixed rate mortgages offer a chance to save thousands for those that have drifted onto a lender’s SVR.

“Cutting the biggest household bill could offer savings that mitigate the inevitable increase in other costs but also gives the chance to shelter payments from any further interest rate rises.”