“With many borrowers taking advantage of the record low rates on the market, it’s little wonder that approvals for remortgages are at a four-year high.

“This rise has been fuelled by the uncertainty of when base rate is likely to rise. Any borrowers opting for a fixed rate deal now will buffer themselves against any rate rises in the near future, which will help them to keep costs under control.

“However, the cost of fixed rate mortgages is already starting to creep up: the average two-year fixed rate has increased from 2.76% at the start of August to 2.82% today, while five-year fixed rate deals have also risen, increasing from 3.24% to 3.29% over the same period.

“This goes to show that we do not necessarily need a base rate rise to see rates move upwards. Borrowers therefore need to act fast to secure the remaining record-low deals on the market, as these offers will not last forever.”

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Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

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