David Prosser: Cheap fixed rates are disappearing fast

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The Independent Online

Outlook Buy now while stocks last. That's the message if you're considering a fixed-rate mortgage. A dozen lenders have pulled their best deals in the past week, with the withdrawals accelerating since Tuesday's inflation data, which sent swap rates soaring.

It is not unreasonable behaviour. Mortgage lenders price deals on the basis of how they expect interest rates to move over the term of the product. With expectations of early base rate rises heightened this week, fixed rates are becoming more expensive.

At current levels, however, the best deals are still good value. If you're worried that a series of base rate rises might leave you struggling to stay on top of mortgage repayments in the years ahead, it's worth investigating the fixed rate market. Just don't leave it too late.

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