Mortgage Rates: Act 'Fast' To Get Best Deals

A financial information website is urging homeowners to act "fast", warning that fixed mortgage rates are on the rise.

Moneyfacts said it saw a "jump" in rates - particularly for people with higher deposits - immediately after the governor of the Bank of England signalled last month that its base rate of interest may start to rise again at the turn of the year.

Bank rate has remained at 0.5% since March 2009 - with policymakers reluctant to raise it for fear of damaging Britain's shaky economic recovery.

A rise in bank rate - which would be the first increase since 2007 - would make mortgages more expensive for people not on fixed-rate deals.

Mark Carney has insisted that rises, when they happen, will be slow and gradual to limit the pain for borrowers.

Moneyfacts highlighted a significant shift in mortgage market activity in July, with 36 out of 125 changes being related to rate increases compared to six out of 120 in January.

The website said that the average two-year fixed rate for a person with a 40% deposit had risen from 1.81% in July to 1.86% in August.

For someone looking for a five-year fix with a 40% deposit, the average rate on offer has edged up from 2.54% to 2.59%.

Charlotte Nelson, from Moneyfacts, told Sky News: "Since Mark Carney's speech in July, we have seen providers prepare for the inevitable, with many opting to increase selected rates in their range."

She (Munich: SOQ.MU - news) added that intense competition between companies was easing.

"We still have the lowest ever rates on the market but lenders are not tinkering with them now."

She described the shift as a warning sign for borrowers that the era of ultra-low rates was coming to an end.

The Bank of England is on Thursday due to announce its latest decision on interest rates.

In a break from tradition, it will also release the minutes of its Monetary Policy Committee meeting at the same time in a move designed to provide immediate clarity on its rate decisions and policy thinking.

The Bank has also chosen to outline the findings of its quarterly Inflation Report shortly after the rate announcement.

Mr Carney is expected to face further questions from journalists over the timing of a rate rise.