Brokers are now advising borrowers who want a fix to take one out as soon as possible, especially as they are cheaper than trackers at the moment.

The popularity of fixes has increased as borrowers have sought certainty, according to the Council of Mortgage Lenders. Nearly 60 per cent of borrowers fixed in April, up from 54 per cent in March and the largest proportion since December.

For example, the cheapest fix from First Direct at 5.49 per cent, available to borrowers with a 20 per cent deposit, would cost £1,226 per month or £17,968 over the two-year term for a £200,000 loan, including the fee of £1,498.

By comparison, the best two-year tracker from Mansfield building society at 5.9 per cent, available to borrowers who have a 25 per cent deposit, would cost £1,276 a month or £19,238 for a £200,000 home loan over the two-year term, including the £999 fee and factoring in a quarter-point rise in interest rates at the start of next year. The First Direct deal is therefore £1,270 cheaper.

Even if economists are right and we get another 0.25-point cut in rates, the tracker at 5.65 per cent would still be more expensive than the fix.

Bien said: “Fixes appear to be cheap compared with trackers, but this is unlikely to last long. Borrowers who are looking for the certainty of a fixed rate should move quickly to secure a deal as lenders are raising the price of some of their most competitive fixes.”

Buy-to-let lenders continued to pull the plug on deals last week. Mortgage Express, owned by Bradford & Bingley, the biggest buy-to-let lender which saw its profits halved this year, withdrew its most competitive deals.

The Halifax Bank of Scotland-owned BM Solutions, the second-biggest buy-to-let lender, increased rates by up to 0.2 points.

Britain’s biggest mortgage lenders have persisted in withdrawing products, tightening criteria and raising rates despite efforts by the Bank of England to encourage banks to lend more, including swapping government bonds for mortgages.

Concerns are mounting that the scheme, thought to have ballooned to £90 billion from the Bank’s starting offer of £50 billion, is not working.

Sir James Crosby, the former HBOS chief executive, has been asked by Alistair Darling, the chancellor, to prepare a report on the mortgage freeze.

It is understood that Crosby has heard evidence that the liquidity programme has failed to kick-start the retail mortgage market as well as several proposals to overhaul the scheme.

THREE - YEAR DEAL BRINGS US CERTAINTY

Richard Fell, 38, an air traffic controller, will remortgage his £1m-plus home in Fordingbridge, Hampshire, in August.

Fell, who is married with two children aged three and six, has a tracker mortgage with Alliance & Leicester at 4.36 per cent and is waiting to see what it offers at the end of his two-year term.

In the meantime, he has booked a three-year, fixed-rate mortgage with Abbey at 5.78 per cent, which will see his monthly repayments jump by £232 to £1,766 on his £280,000 loan.

Fell, pictured above with six-year-old Ben, said: ‘Right now we need certainty and I feel the fixed-rate deal will give us that. I could go on to A&L’s revert rate of 5.99 per cent and avoid the remortgaging fees but the repayment jump would be worse.’

He added: ‘I have been worried about the turmoil in the mortgage market so I thought it would be best to book ahead. If A&L does come up with a better offer I will turn down the Abbey deal.’