An estimated 1.1 million borrowers are on their lender’s standard variable rate (SVR) – the default and pricier rate for those who haven’t locked into a fixed rate mortgage.

According to data site Moneyfacts, the average SVR now sits at 5.06%. This is up 0.15% in the month to July and is up from an average 4.40% recorded in December – ahead of the five subsequent Bank of England base rate hikes.

This is the highest rate the site has recorded since January 2009 (5.14%). And compared to this time last year, the SVR stood at 4.41%.

But it’s not just default rates which are climbing. Moneyfacts revealed the average rate for a two-year fixed mortgage in July is 3.74%, a 0.49% rise on last month and up from the 2.34% recorded in December 2021. This is the highest recorded since May 2013 when the figure stood at 3.8%.

Meanwhile, the average five-year fixed mortgage stands at 3.89%, up 0.52% in just a month and a leap from the 2.64% noted in December ahead of the first base rate hike.

This is the highest average five-year fixed rate recorded since November 2014, where the rate was 3.93%.

Both the two- and five-year rates have now seen nine consecutive monthly increases.

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Eleanor Williams, finance expert at Moneyfacts, said: “Although the difference between the SVR and the average fixed rates has reduced in recent months, for eligible borrowers about to fall onto a revert rate, the incentive to lock into a new fixed deal is still clear.

“While we remain in a cost-of-living crisis, with pressure on many household budgets, it’s vital prospective borrowers explore their options and are not disheartened by recent rate rises. There are products in our top tables with even more competitive rates still available, and therefore some could possibly reduce their outgoings on their mortgage.”

She said those switching from the average SVR (5.06%) to the current average two-year fixed rate (3.74%)  might be able to make monthly savings of nearly £150 – based on a mortgage balance of £200,000 over a 25-year term.