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Mark Harris, Director of Finance of Savills private said: "the cost of five-year fixed-rate money recently tumbled and it is the cheapest rate, we have ever seen. But it is still significantly higher rates of many owners pay if they are on the cheaper tracker and standard variable rate loans.

Many borrowers have faced the dilemma of their current mortgage or move to a patch, because interest rates were cut to unprecedented levels by the Bank of England.

Although their existing variable rate loans can be very attractive now, their mortgage monthly payments may increase sharply when rates are rising.Switch to a fix means that these borrowers initially pay more, but their new loan might have to reveal the alternative cheaper after some rate increases.

For example, customers of Cheltenham & Gloucester and Nationwide Building Society, who pay lender's standard variable rate (SVR) benefit from 5pc 2 at the moment interest rates well below record provides the same ING.Mais if the Bank of England to increase the rate of two percentage points, it would be reversed.

However, since no one knows when the rate begins rising or how high they go, how the borrowers decide if they would be better off switching?And if they decide to pass, as they do now or may they enjoy low SVRs for a little longer?

Anyone who could afford much higher rates should go to the certainty of a patch, advisors dire.Mais others appropriate to compare how you lose if you pass a hotfix unnecessary, then the worst of cases do not pass and then being hit by rates rises.

We asked Melanie although finance soldier, mortgage broker, for more than five years of sticking with an SVR 2 5pc and switching to treat ing in two scenarios different cost rate.It was the outcome more benign rate that we expect realistic and, at the other end of the spectrum, the series more pronounced rate increases which could reasonably be held.

Benign scenario envisaged interest rates increase at the beginning of 2012, percentage point and then staying at 1. 5pc for five years.In the other scenario, rates increase by one year percentage point each year until November 2015, when they reach 5 5pc.

We assumed a sum of ￡ 300,000 interest-only mortgage for a borrower on a 2 5pc SVR, means a monthly refund of ￡ 625.

Benign scenario, stay with the current agreement is considerably cheaper overall. If the five-year remortgaged the ING borrower set 3 69pc now, monthly payments would increase from ￡ 923 a month and the total cost of the five years would be ￡ 55,350, Julianne dit.Cependant, paste with 5pc 2 SVR rather cost ￡ 49,813-￡ 5,537 economy.

But the worst-case scenario for the rate of interest, this position is reversed.Set the borrower immediately mortgage to 3 69pc ing will pay a total of ￡ 55,350 over five years, then stay with loan existing cost ￡ 71 750.Dans this case, the cost of choices does set is ￡ 16,400 over five years.

So in this case the borrowers who choose to stay with their current agreement stand to lose scenario more serious that adjacent to win under the benign.

But this does not apply if you have much cheaper mortgage rates - for example those likely to pay 1. 49pc on the Woolwich - tracker or for those who cannot access to one of the cheapest fixed-rate transactions because they do not have sufficient equity in their homes. It might be useful to make money - or to ask a broker to do it for you - for your own situation.

"Course, it is not a straight line" either / or "decision."If rates start to rise, people may still set at a later date - however, expect the price of fixed-rate transactions increased considerably in the meantime.

If you decide to set, the next question then is faire.Les rates will not want to stick with their current agreement at the last possible moment. Here, the risk is left too late and see the best fixed rate deals removed, that arrives until the Bank of England raises rates officiels.Comment can you when it's time to make your move?

No one can predict with certainty, interest rates even economists.But there are some warning signs to search according to Ray Boulger John Charcol, broker.

"Rates of interest on fixed-rate markets are strongly influenced by large"swap"levels", he said. "Then they do are not widely reported, they depend in turn largely on the gilt - yields that you can find quite easily."Five-year gilts are currently producing approximately 1.6pc.Il added that lenders were not changing rates quickly, there is often a short"window"between the swap rate hike and fixed?rate deals with mortgage overlap.

"You could try also read the last few paragraphs of the minutes of meetings of the Committee on monetary policy of the Bank of England - this is where indications on future rates are usually found," said Mr. Boulger.

If you prefer the experts forecast, could help a courtier.M.Boulger said his company contacted customers if he thinks that the time to fix come. "US customers via email newsletter and used to inform them that it was desirable to fixation.Nous we did not yet and I expect to during several months, but these things can change quickly.?

Julianne has added: "" be considered binding for five years instead of two, because if interest rates start amounting to later next year you could remortgage, once again, only when rates are more patch élevés.Un five years give you certainty. ""

Although there are many mortgage rates around, qualification can be difficult while banks and building societies have made their ready criteria much serré.Mais there are steps you can take to apply for a mortgage loan that can improve your chances of acceptance.

"It is more difficult to obtain funding agreed now that you've taken your existing mortgage, it is important to make yourself as attractive as possible to the lender," said Julianne. "More your best, fairness, therefore if you sit savings account are not earn a lot of interest, it should be used to reduce your mortgage.

"If you do this, keep some side in an emergency, such as the money paid on your mortgage is difficult to obtain return unless you have a flexible agreement."

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