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Almost a third (31%) of homeowners have allowed their mortgage to slip to a higher interest rate for at least a month after the end of their fixed rate contract, a mistake that can result in £3,000 in unnecessary mortgage repayments.

According to a survey by financial comparison site finder.com, the total time it took for mortgage loans to be reduced to a higher interest rate was on average 10 months.

Someone paying off the cost of an average UK home valued at £281,913 at a competitive 3-year fixed rate* of 5.5% would pay £1,361 per month over those 3 years.

However, if they do not take out a new mortgage immediately at the end of the initial fixed term, the interest rate will revert to the lender's standard variable rate, which is currently typically around 7.5%. This would cost them £1,661 a month, an extra £300. The average person paying on this for 10 months would therefore have to part with an extra £3,000 to pay the extra interest.

While the average time that homeowners surveyed left their interest rate open was 10 months, more than one in ten (11%) had paid a higher interest rate for over a year. Worryingly, 3% said they had paid an interest rate for over 5 years. This would cost over £30,000 in extra interest.