Time to snap up a fixed rate

Consumers with a mortgage on the standard variable rate of interest are being urged to move fast to get a good fixed-rate deal ahead of a possible future interest rate rise.

The Bank of England's monetary policy committee is set to meet to discuss rates on March 10, and while economists are divided as to when it will increase interest rates, most agree that a rise is planned either then, or in May.

Ian Giles, marketing director at Purely Mortgages says: "We're seeing lenders edging up their fixed rates in anticipation of a base rate rise. Our advice is don't waste time, remortgage quickly. A quarter point rise is not insignificant and adds an extra £31.25 per month on a £150,000 mortgage."

This week, Bristol & West pulled its two-year and five-year fixed rate mortgage deals at 4.89% and 4.95%, and from next week it will be offering the same products at a new rate of 5.19%. Portman BS also increased the rate of its two-year fixed rate mortgages, from 4.48% to 4.55%.