Take on a fixed-rate mortgage rapidly

People are being advised to opt for the security of a fixed-rate mortgage before the Bank of England is tempted to increase interest rates further.

According to the price comparison site moneysupermarket.com, the top lenders such as Barclays, Abbey, Mortgage Express and Northern Rock have already raised rates on their fixed-rate products since the base rate increased by 0.25% in May 2007.

Louise Cuming, head of mortgages at moneysupermarket.com, described how a number of lenders, including Abbey, were already increasing the rates on fixed-rate packages as the market prepares for interest rates to jump up to 5.75% next month.

"Abbey increased its fixed-rate range last week and Halifax did this week. It is only a matter of time before other lenders follow suit and increase their rates again," she said.

"Borrowers needing the stability of a fixed-rate product should reserve their next deal now if their current mortgage term is set to end soon," she added.