The only way is up for interest rates, so should people fix?

Since falling from five per cent in September last year, interest rates have now remained at 0.5 per cent for two months, suggesting that they have hit rock bottom.

The fall in interest rates saw people on tracker mortgages save hundreds of pounds a month on their mortgage, while those stuck on a fixed rate suffered at the hands of higher rates.

However, as the only way is up for interest rates, should people start fixing? Commenting, chartered financial planner at Fairinvestment.co.uk, Sharon Bratley said: "The fact that interest rates have remained the same for two consecutive months could be an indication that interest rates have bottomed out.

"The next step is likely to be an increase, but when this increase will happen remains to be seen. It could be next month or next year, but the fact is that interest rates are going to rise, which might be enough for mortgage lenders to start pushing their interest rates up.

"Those on a tracker mortgage may well be experiencing cheap interest rates at the moment, but have to consider that they could soon be paying significantly more once rates do begin to rise compared to some of the fixed rate mortgage deals available at the moment.

"If people start shopping around now, they could get a good idea of what is out there in the fixed rate mortgage market - it may mean paying more initially, but as soon as interest rates begin to rise there will be no stopping mortgage lenders who desperately need to realign their balance sheets.

"Ultimately, getting independent mortgage quotes and advice from an expert should help people to work out the best mortgage option for them," she added.