Mortgage advisors are divided in their opinions as to who are the real winners and losers out of the recent interest rate rises.
No one could argue that borrowers who have variable rate mortgages have lost out because their monthly repayments have increased due to the extra interest due.
However there is debate over whether borrowers of fixed rate mortgage products are better or worse than before the recent base rate increases.
The interest rates set on fixed rate mortgage products are not necessarily tied to the Bank of England Base Rate. Rather, they are derived from the cost of borrowing to the lender, which is called the swap rate.
While the base rate has risen over the past year, so have swap rates. This should result in an increase in the interest rates offered by lenders on fixed rate mortgages. In other words, lenders would pass on the increasing borrowing costs that they forced to end to their borrowers.
However, this has not strictly been the case. Many lenders have not passed the increased swap rates on to their borrowers and have instead reduced their margins.
Some mortgage advisors are claiming that by not moving on the full amount of the increase in swap rates, the borrowers are gaining a huge benefit.
Other mortgage advisors, however, are quick to point out that although the interest rates offered on fixed mortgages have not risen in line with the increase in swap rates, they have risen, and borrowers are worse off as a result.
Whatever their individual opinions, mortgage advisers have been busy helping their clients save money by remortgaging to more favorable products as interest rates increase.
This flurry of activity has meant that mortgage advisers may have the real winners as they receive agreements and fees from mortgage lenders for each remortgage they complete for their clients.