At least 1.8 million borrowers who have taken out a fixed-rate mortgage will see their deal come to an end this year.

       For one group of borrowers, those who fixed their mortgage for five years back in 2020, the end of their deal may result in a financial shock, as one property expert has warned.

       Five years ago, interest rates were 0.25%. In March they were reduced to 0.10% and stayed at that rate until December 2021.

       Between 2009 and 2020, interest rates were 1% or under, meaning borrowers enjoyed a decade plus honeymoon of low interest rates.

       Alistair Singer, director at My Home Move Conveyancing, said many mortgage borrowers will have fixed their mortgage at a historically low rate. The average 5 year fixed rate was 2.4% in 2020 while this month it would have cost an average of 4.77%

       Over a year the difference in interest paid is over ￡3,000 on a ￡130,000 outstanding mortgage, although some households will have paid off significant capital there will be many who may have struggled to pay off their mortgage as a result of the Covid pandemic and the cost of living crisis.

       READ MORE Major bank launches sub 4% interest mortgages in start of potential ‘price war' [LATEST]

       Singer said: "The situation is particularly pressing for those who secured five-year fixed-rate mortgages in 2020 when interest rates were at historic lows. As these fixed terms end, the vast majority of homeowners can expect to pay more for their mortgage.

       He said the average UK homeowner could face an increase of ￡259 in their monthly payments – amounting to ￡3,110 annually.

       Singer said it was important for borrowers to be prepared for an invevitable rise.

       "It is important to get prepared early and start looking into remortgaging deals, as coming to the end of your mortgage term without another one in place can be costly.

       "When a fixed-rate mortgage ends, homeowners automatically transition to their lender's standard variable rate (SVR). This means your interest rate can change based on market conditions - potentially causing you to miss out on better deals available."

       B

       Don't miss...

       Nationwide mortgage customers given huge boost by lender [REPORT]

       Brits told 'loyalty doesn’t pay' as over 30 savings providers slash interest [ADVICE]

       The expert has given readers six tips to help buyers prepare for their remortgage:

       1) Don’t leave it too late. If your mortgage is due to end within 3-6 months, check your current terms now as remortgaging can take anywhere from 4-8 weeks. Starting early gives you time to compare your current mortgage against new deals and carefully consider your options.

       2) Check your end date, current interest rate, future standard variable rate (SVR), and outstanding balance. While you can switch automatically to your lender's SVR and remortgage later, this usually means paying unnecessarily high interest rates.

       3) Track and improve your credit score. Just like with your initial applications for a mortgage, lenders will check your credit score to determine their lending risk and products available to you. Review all your existing debts - including overdrafts, loans, credit cards, and store cards - and make sure they are in order before applying.

       4) Check your equity. Before remortgaging, check your Loan-to-Value (LTV) ratio by dividing your current mortgage balance by your property's current value. A lower LTV means you have more equity in your home, which makes you less risky to lenders. This typically leads to better mortgage rates, putting you in a stronger position when the time comes.

       5) Save enough for remortgaging fees. Understanding potential fees is crucial when remortgaging. Review your current mortgage contract for early repayment charges, which typically range from 1-5% of the remaining balance, as well as exit fees that usually stay under ￡100.

       6) If you are unsure, seek advice. The amount of products available can be confusing and a mortgage broker can recommend the best deal for you having researched the market. This will include looking at products that you can potentially transfer to with your existing Lender without remortgaging.