Homeowners on variable rate mortgages have seen their repayments go up significantly over the past year, as interest rates have continually increased.

The base rate set by the Bank of England is currently 4.5 percent with some analysts predicting bank bosses will raise the rate again, as the rate of inflation remains high.

Liz Hunter, director at Money Expert, said the current predictions are that the base rate will go up to almost five percent by August, and then slowly fall over the next five years to around 3.4 percent.

She said, given the volatile situation with the changing interest rates, people who are looking to remortgage face a “difficult decision”.

She said: “If you’re on a variable rate mortgage and you are worried about interest rate rises, then it may be worth remortgaging to a fixed rate deal.

READ MORE: DWP confirms when 6 million people will get £150 Disability Cost of Living Payment

“If interest rates rise any more, which they’re predicted to do, then agreeing a fixed-rate mortgage now would protect people against further rate increases.

“This ensures that the interest rate won’t go up or down throughout the mortgage term, giving people more security and peace of mind, enabling them to budget for the payment each month.”

She said people on a variable rate can use an online mortgage difference calculator to find out how much their monthly repayments could change with a different rate, compared to their current one.

Ms Hunter also said it’s important for people to have a financial plan in place to deal with any interest rate changes, and to cover any extra cost increases.

She commented: “With consecutive interest rate rises, coupled with the cost of living crisis, people may be worried about their financial situation.

“Borrowers who are worried about the impact of this rise on their finances should seek financial advice.

“An expert will be able to help people manage their finances more effectively and see whether a plan should be put in place to avoid them falling into financial difficulty.”

Richard Dana, founder and CEO of Tembo mortgage brokers, said it can be difficult for families to plan ahead as interest rates are difficult to predict at the moment.

He explained the consensus is there will be one or two more rate rises with the base rate stabilising at around five percent.

He warned: “But this really depends on how the economy performs. If prices continue to increase at the rate they have been over the past year then interest rates will continue to go higher.”

Mr Dana said one factor that indicates how interest rates may change is the current rates on fixed rate mortgage deals, as these show what lenders think will happen in the market.

He explained: “Over a two-year period – the best rates are around 4.6 percent - suggesting that lenders are expecting rates to plateau over the next few years.

“Five-year rates are four percent - which suggests lenders are expecting rates to start coming down from their current levels over that timescale.”

To find the best deal, Ms Hunter recommended people shop around and use a price comparison site to see the variety of products on the market.

She said: “Most lenders will put people whose mortgage term is coming to an end on an expensive SVR, so it’s important to start shopping around shortly before the term is coming to an end to compare the market early and move to the best deal before they’re put on an SVR.”

Ms Hunter pointed out those who are not at the end of their term will need to think about early repayment charges before deciding if remortgaging is appropriate for them.

She explained: “Mortgages usually come with an early repayment charge, which will need to be paid before switching to a new mortgage. In this case, it may be worth waiting until the existing deal comes to an end before switching, particularly if the early repayment charge is high.”

Pete Mugleston, MD and mortgage expert at www.onlinemortgageadvisor.co.uk, warned 2023 will continue to be a “tough year” for mortgage borrowers.

He urged people approaching the end of the mortgage term to be proactive to make sure they get the best deal.

He said: “The smart move first of all is to seek advice from a mortgage broker. They’ll be able to save you a lot of time and stress by helping you research and compare all the best remortgage options available well in advance of your current deal ending to find the most competitive rates and favourable terms.

“A mortgage broker will also be able to review your credit score and financial situation to identify areas for improvement and increase your chances of securing better mortgage deals.”

For the latest personal finance news, follow us on Twitter at @ExpressMoney_.