Not too late to fix your finances

However, moneysupermarket.com warns borrowers on variable rate mortgages to prepare for a base rate increase and consider fixing now.
The average two year fix rate deal now stands at 4.45 per cent, compared to 4.27 per cent last month, and 4.49 per cent six months ago; and in the last week alone several fixed rate mortgage deals have been pulled all together. Those looking for fixed rate security should therefore act now before more products are withdrawn as delaying could prove costly.
Someone with a 25 year term £150,000 repayment tracker mortgage at 2.2 per cent will currently be paying £650 per month. A 0.25 per cent increase in Base Rate would see their repayments rise by £19 a month. However if Base Rate climbs by one percentage point they would be paying £727 a month – an increase of £77.
Clare Francis, site editor at moneysupermarket.com comments: "With some leading economists predicting we could see the first Base Rate increase before June, borrowers need to take action as soon as possible if they fear they will not cope with an increase in their mortgage repayments.
"We've seen a raft of lenders pull their fixed rate mortgage in the last few weeks and replace them with higher rates and it's highly unlikely that fixed rate deals will come down again in the short term. If anything they're likely to continue rising. There are some highly competitive fixed rates so borrowers concerned about the impact higher interest rates will have on their mortgage payments, should snap them up while they're still available. It's still possible to get a two-year fix under three per cent and you can fix your mortgage payments for five years at under four per cent.
"However, most fixed rate mortgages have early repayment charges so borrowers will face a hefty penalty if they need to get out of the deal during the fixed term. This is something to bear in mind when deciding how long to fix for. "