A phrase I often hear from my clients is, “Rates are going up, so I’d better fix now.”

The problem is that there is no free lunch and the issue of whether to fix the interest rate on your loan, be it on a multi-million pound commercial investment or your home mortgage, needs to be considered from a wider perspective.

Financial markets price these sentiments into the fixed rate or cap premium they offer. As such, when a client fixes their interest rate because they think, like most others in the market, that rates are going up, they will not necessarily benefit from the savings they believe they will receive.