Officials have expressed concern that many homeowners in the UK could be left facing financial hardship if the base interest rate increases, and some have suggested that those that are in danger of facing higher repayments may want to do some forward thinking and look into safeguarding themselves against higher repayments.

Industry experts have said that interest rates in the UK could start increasing as early as next spring, and for those that are on variable rate mortgages and have been enjoying the rock bottom interest rates there could be a sudden payment shock as they find that their monthly repayments suddenly soar. One official said that homeowners needed to brace themselves for the possibility of an increase of possibly 2 percent over the next year or two.

One expert said that it was worth homeowners on variable rate mortgages considering the low rates of interest now available on fixed loans, and safeguarding themselves by switching to a low rate fixed mortgage for a few years. This would then protect them from unexpected repayment increases if the base rate was to increase over the next year or two, as their rate and repayment would then be fixed for the specified duration such as two or three years.

Andrew Montlake, a mortgage advisor, said: “As rates have fallen to historical lows people should be taking advantage of some of the attractive fixed rates on offer. While it is nice to be on a low tracker rate, this can change quickly and people have to be sure they can afford not just a 1 per cent rise, but possibly a 2 per cent rise in rates over the next year or two.”