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Home buyers are quickly finding out that fixed mortgages are getting very expensive as more banks announced this week that they were raising their rates. Although fixed mortgages are usually seen as being more secure, there is now a high price to pay for that security. Those seeking a fixed mortgage should be prepared to pay premium interest rates according to financial analysts. This trend will continue for sometime, making it very hard for home buyers to decide what they should do to save money.

“Fixes are popular because the future direction of interest rates is so uncertain,” says David Hollingworth of broker London and Country. “There is a lot of noise out there and alarming headlines. People want stable payments. They want to dissociate their finances from rate moves.”

Drew Wotherspoon from broker Charcol adds: “De- pressingly for borrowers, it will not end here, with other [lenders] certain to follow. So the message for those who want a fixed rate is act now.”

“The devil is always in the detail with fixed mortgages Ð some of the fees for coming out of a deal early can be punitive,” says Sean Gardner from comparison site MoneyExpert.com.

Related reading: Fixed Mortgage