Fix your mortgage!

“Now is not yet the time” to begin raising interest rates, observed the Bank of England governor Mark Carney this week – citing mixed signals on consumer spending and business investment, as well as “anaemic wage growth”. But the issue is definitely back on the agenda, said David Byers in The Times.

That much became clear when three out of eight members of the Bank’s Monetary Policy Committee voted for a base-rate rise at last week’s meeting. Policymakers are torn between tackling inflation (which at 2.9% is well above the 2% target), and responding to the risks to the economy from weaker real wages and a slowing housing market. Given the added uncertainty of Brexit negotiations, “I can’t see an imminent change,” said Jonathan Harris of Anderson Harris mortgage brokers. But, with mortgage rates at all-time lows, the only way is up. So if you’re coming to the end of a deal, or sitting on a lender’s standard variable rate, the advice is to fix as soon as you can.

Where are the best deals? Tesco currently has the lowest five-year deal at 1.68% (with a £995 fee). Virgin Money offers a comparable rate, but expect to pay double the fee. The lowest ten-year deal is Coventry Building Society’s 2.39% offer, with a £999 fee. Barclays, First Direct and TSB all have similar deals.