Lisa Taylor, analyst at moneyfacts.co.uk comments: With continued rumblings in the market of a base rate increase later this year, consumers may be choosing now to secure a fixed rate deal, but with swap rates rising they may need to be quick before the very low rates disappear.
Taylor says that swap rates the rates that lenders borrow money – now stand at 5 per cent and it wont be long before consumers will face best-buy two-year rates of at least 5 per cent.
With many consumers stretching their disposable income to its limits and the added financial pressures caused by higher utility and fuel prices, signs of rate increases will be unwelcome, says Taylor.
Choosing a fixed rate now could cost you around £21 more than with a tracker on a mortgage of £150,000, says Moneyfacts.
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