According to This is Money with interest rates shown to rise early 2016, homeowners are now rushing to fix their mortgages.

Some of the most cheapest mortgage rates have been pulled off, as banks look to get even a little more from borrowers, however rates remain historically low.

Figures are showing interest rates are slowly rising, however borrowers should consider that rates are forecast to be rising in two years time and so those taking shorter termed fixed rates will need to consider that costs will likely be higher when those deals end.

Those who may have largest deposits such as 35 t0 40 per cent , have the possibility of fix rate for years below 2.5 per cent and for two years at below 1.2 per cent.

This is Money say that at the benchmark 25 per cent deposit mark, five-year fixed rate mortgages hover at about 2.5 per cent, while two-year fixes stand at about 1.3 per cent.

The figures from Bank of England show that average mortgage rates inched up ever so slightly in July after hitting a record low in June 2015. The average two-year fix at 75 per cent loan-to-value was 1.87 per cent, while the average five-ear fix was 2.83 per cent, this is compared to 1.83 per cent and 2.82 per cent the previous month.

 The best rates on offer are even lower than this. Homeowners can fix for two years at just 1.07 per cent and up to ten years at just over 3 per cent.

For some those may feel too short or too long, but a five-year fixes at below 2.5 per cent might look a very tempting middle ground.

Source:   26/08/2015