Unintentionally, hundreds of thousands may overpay their mortgage.

The mortgage holders have been urged to see if there are any ways they can lower their monthly bills. Around 600,000 homes are on Standard Variable Rates (SRV), which adds thousands of dollars to their mortgage payments.

The average SVR is 7.25 per cent, and homeowners who pay these rates could be paying thousands of dollars more each year. 

According to new mortgage broker Mojo Mortgages data, the two-year average fixed rate for major lenders was 4.52 percent.

The difference in rates for a typical UK home worth £267,100 translates to an annual saving of £3,984.

SVRs are usually higher than fixed rates because they can fluctuate at the discretion of the lender or with changes to the Bank of England base rate. This results in payments that are more unpredictable and higher.

Before making the jump, people should consider a few things. People should first check whether their mortgage has an Early Repayment Fee (ERF).

ERCs can be charged to those who leave their mortgage early. These fees range between 1% and 5% of the outstanding balance. Consider whether switching will result in a greater savings.

The arrangement fees are also important to consider. This can be charged by some lenders for new mortgages. It could cost as much as £2,000. Look for a deal that is fee-free.