Your mortgage deal might have been competitive when you first got it.

But you could be saving a lot of money by reviewing and re-mortgaging when an appropriate deal is available.

If you've had your mortgage for a while, and you haven't reviewed it, how sure are you that you're still getting a competitive rate?

We've started to see signs of inflationary pressures, which means if the base rate goes up, then inevitably, mortgage interest rates are likely to follow.

Start planning at least four months before the end of the fixed rate period ending.

Once it ends your mortgage will revert to your lender's standard variable rate (SVR) of interest.

Streamlining your largest debt

If you do nothing when rates change or your mortgage deal ends, you might lose out to a more attractive deal.

Your mortgage is likely to be your biggest financial commitment. So it follows that streamlining your largest debt could produce the largest saving.

Mortgage rates have been very low by historical standards in recent times and that is partly why there has been such high demand for homes during the pandemic.

But the Office for Budget Responsibility announced that if inflation rises by more than 5 per cent then more expensive mortgages, particularly in 2023, would be more likely.

The base rate, which is set by the Bank of England (BoE), is important to homeowners because it acts as a benchmark for the cost of borrowing money.

One of the biggest concerns around a rise in inflation is the potential impact on the cost of mortgages.

Fixed rate

Higher energy, fuel, transport and food costs make a rise in the cost of borrowing more likely.

The question now seems to be not if the bank will raise rates, but when. The lower the base rate, the lower the interest rates.

If the base rate goes up, so inevitably will mortgage interest rates.

We are already starting to see some signs that fixed rate mortgage deals are increasing, and although competition should help to maintain lower rates, it looks as though the reductions in fixed deals enjoyed previously could be coming to an end and even beginning to reverse.

Rate rises will almost certainly affect homeowners paying a standard variable rate (SVR) or discounted deal linked to an SVR, as lenders will adjust this independent borrowing rate too.

Interest rates

If you currently have a tracker rate mortgage you could see an immediate change to your monthly payments, as your rate is directly correlated to interest rates.

If you're on a tracker or variable mortgage, you should start to shop around to see if you can find a cheaper option with a fixed mortgage, although you might have to pay an early redemption fee first.

If you are currently planning to apply for a mortgage it makes sense to act sooner rather than later and obtain professional mortgage advice, as some mortgage lenders may allow the current low rates to be locked in at an early stage in the mortgage application process.

Now is the time

If your current deal is coming to an end within the next six months now could be a good time to review your situation.

Some lenders will allow you to apply for current deals several months before your mortgage expires.

While increases in interest rates are clearly not good news for borrowers, neither are they a cause for immediate panic.

Your home/property may be repossessed if you do not keep up repayments on your mortgage.