Brokers are urging borrowers to remortgage as the age of record low mortgage rates draws to a close.
Last week, Bank of England governor Mark Carney hinted that base rates will rise sooner than the market expected, and brokers say this will put a stop to the mortgage price war that has driven rates to all-time lows.
Adrian Anderson, director of mortgage broker Anderson Harris, said: “Once the money markets price in a rate rise, the cost of fixed rates start shooting up so if you want a fixed rate you may want to secure one quickly.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said when rates do start rising they will do so slowly and settle at around 2.5%.
"But inevitably rates will rise at some point so it's important for borrowers to plan ahead."
Harris said that borrowers on a variable rate who would struggle to pay their mortgage if rates rose should consider locking into a fixed rate.
“There are some really cheap deals on the market, with two-year fixes starting at 1.05% and five-year fixes from 2.14%.
“In all likelihood, we have now seen the cheapest of these fixed rates so don't delay if you want one of the more competitive deals in the hope that a better rate will come along. It probably won't.”
David Hollingworth at London & Country Mortgages said mortgage rates could start rising in advance of any Bank of England announcement.
“Borrowers leaving it until rates make a move should not expect these supercheap rates to still be around.
“As expectation of the rise heightens fixed rates will be forced up.”