Although the bank of England kept interest rates on hold last week at 0.5%, many experts are forecasting an increase before the year is out. When interest rates are so low, it doesn’t take a genius to forecast that the next move is up – but forecasting the timing of the increase is more tricky.

So what would an increase in mortgage rates mean to you? If you’re trying to sell your house, it’s not going to help is it? And if you’re happy where you are, have you fixed your interest rate?

In recent weeks many lenders have reduced their fixed rates and the number of deals under 4% have doubled. And with the best 2 year fixed rates sitting at less than 3%, now could be the time to get that fix.

To a certain extent, the interest rate situation will be conditioned by developments in the housing market. We feel that the recent mini upsurge we have seen has no legs as unemployment is still rising and mortgage lending is running at 60% down on last year. And if we are wrong, the Bank of England will see rising prices as time to bring forward the inevitable rate increase.

Therefore, with rates having edged down and with future rate increases on the horizon, anyone who moves their mortgage to a fix is making a shrewd move. If you can fix now for 5 years at less than 5%, that represents cheap borrowing – go to it!