L&G: Get deals done while you can

The Bank of England inflation report said the “Bank rate may need to remain at low levels for some time to come”, yet 5-year fixed rate deals are already rising.

But Duncombe said: “Borrowers can’t afford to be complacent. Lenders will price in a change in base rate well in advance of any decision to increase and therefore the historically low rates we have seen in recent times are not going to be around for long.”

A rate rise of just 0.5% could see the average mortgage bill increase by £750 per year.

He added: “Borrowers should therefore look at their options and talk to an advisor to tie down a more favourable deal while they still can.

“A mortgage is the largest financial commitment many of us will take out in our lives so it is crucial that borrowers make changes that are suitable for their own circumstances.”