Fresh concerns were revealed this week that the cost of fixed rate mortgages are likely to rise in the next couple of months. The rise in the cost of bank’s funds has already provoked several lenders to raise their fixed rates in response to the rise in underlying costs and more are expected to follow suit.

Economists have now predicted that unless inflation falls back into line then interest rates could continue to rise over the next few months. Brokers are advising borrowers to reserve their new mortgage rates now, even though they may have to pay several hundred pounds up front to do so.

The managing director of Hamptons International, Jonathan Cornell, said that waiting for rates to drop was too risky: “A lot of people have been caught out by thinking rates are really high now so must come down.”