Mortgage rates have been falling to new lows so far this year but with Bank of England governor now discussing raising the base rate later this year, borrowers must be prepared.

Price comparison website Money Supermarket said borrowers currently on an expensive standard variable rate (SVR) could see their monthly repayments increase by £264 per year if base rate rose by 0.25%.

It said fixed rate deals would protect homeowners against a sharp rise in mortgage payments in future. It said the leading five-year fixed rate product on the market is now on offer at 2.14%, this compares to a 4.89% best buy in 2008.

Dan Plant, consumer expert at Money Supermarket, said even if borrowers are locked into a deal, they may be able to switch to a lower rate.

“If you are in a position to fix right now, doing so will get you security at a cheap rate,” he said.

“But even if your current deal doesn’t end until December, many lenders will let you reserve rates that are available right now, for up to six months, for a small fee.

“If you are able to do this, you could ward off the possibility of a huge jump in repayments, which you may see if you waited till your deal ends.”

Borrowers were also told to consider the fees charged by mortgage lenders, as this can make remortgaging more expensive.

Plant added: “When comparing mortgages it’s vital to work out the total cost over the term of the deal, taking both rates and fees into account.

“Don’t automatically be put off by high fees, as it may be worth paying this to benefit from the lowest interest rate. Costs can vary greatly between providers so taking the time to work out the total amount you have to repay over the term of the offer is essential.”