5 year fixedWith the UK economy growing faster than expected this could push forward the first base rate hike by as much as 12 months, economic forecasters say.

Borrowers considering taking out a five-year fixed should consider this sooner rather than later as anticipation of a rate hike grows.

There is a one in five chance that unemployment could fall to 7% in the first half of next year, which is one of Bank of England governor Mark Carney’s trigger points for hiking base rates from today’s 0.5%, according to the National Institute of Economic and Social Research.

But it admits there is “considerable uncertainty” about the rate at which unemployment will fall. Its best guess is that the level could get 7.4% by the middle of next year, down from today’s 7.7%.

Some are forecasting a rise in interest rates in the second half of 2015.

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