With interest rates hitting a 15-year peak, owners who're remortgaging could possibly be attributable to face a month-to-month cost rise of £288 on common, new information exhibits.

This ends in a mean improve in mortgage funds of £3,456 per 12 months, equating to a 38.6 % rise. The common mortgage fee, in keeping with Dashly, will bounce from 2.29 % to five.23 %.

Dashly, the mortgage perception specialists that monitor over £100billion in mortgages, extracted this information from a pattern of 75,000 owner-occupied and buy-to-let mortgages with preliminary charges expiring between August 2023 and July 2024 and located common month-to-month mortgage funds might rise from £747 to £1,035.

This determine assumes debtors swap to the very best out there fee as an alternative of lapsing onto their Standard Variable Rate (SVR).

Brokers shared their views on newspage.media on the findings, with one, Lewis Shaw, founding father of Mansfield-based Shaw Financial Services, saying: “2024 will be the year of the remortgage, and given current market predictions, it will be absolutely brutal.”

Elliott Culley, director at Hayling Island-based Switch Mortgage Finance, weighed in: “This data reinforces what we are already seeing on the front line. Borrowers are looking into how they can mitigate the rise in mortgage costs.

“It's a tough market right now and tough decisions are being made as people change their short-term plans to stay on top of rising mortgage costs. Some will have to take the decision to downsize and some are trying to prepare for the inevitable increase in costs by reducing their overall mortgage balance before their rate rises.”

Meanwhile, Darryl Dhoffer, founding father of Bedford-based The Mortgage Expert, identified that some debtors will likely be affected greater than others. He mentioned: "For many, a pointy improve of their mortgage funds is inevitable.

“Let's not forget these are average figures, so borrowers with lower average mortgage balances will be less impacted than those with much higher above-average mortgage balances."

While remortgaging may naturally feel daunting in the current climate, experts at Arbuthnot Latham have shared some practical approaches to managing and reducing payments and generally, it requires homeowners to be proactive.

They said: “Regularly reviewing what types of mortgages are available and the interest rates they can offer can be a great way to reduce your mortgage costs.

“Something that often gets overlooked is the value of maintaining a healthy credit score and avoiding excessive borrowing. These can both contribute to you securing a better mortgage deal when yours expire.”

In addition, they mentioned: “Consider a property revaluation, especially if your property's value has appreciated since obtaining your mortgage. A lower loan-to-value may lead to reduced interest rates and better terms, which could help you to save significantly over the mortgage’s duration.”

They additionally famous the advantages of constructing lump sum funds – as an example from bonuses, inheritance or realising investments – which might considerably lower the excellent mortgage steadiness and result in “substantial” long-term financial savings.

However, they mentioned: “Before taking this step, review your mortgage terms and check you will not be liable for any early repayment charges.”

Arbuthnot Latham specialists additionally highlighted the dangers to pay attention to when contemplating interest-only mortgages, or extending the mortgage time period. They mentioned: “Interest-only mortgages may offer lower initial monthly payments and therefore look very attractive if your objective is to reduce your mortgage payments – but you will not be repaying the capital borrowed.”

Meanwhile, they famous that extending a time period “can be helpful” throughout financially difficult occasions, however harassed that longer mortgage phrases additionally imply paying extra curiosity over time.

The specialists added: “Find the right balance between affordability and long-term financial goals by consulting a financial adviser.”