People who currently borrow money from high street mortgage lenders using any of the latest deals should be wary of rates which appear too good to be true, it has been suggested.

Hannah-Mercedes Skenfield, mortgage expert at moneysupermarket.com, has said that mortgage lenders often offer low rates but charge additional fees, which in effect cancels out what first attracts many borrowers.

Commenting on the effects of the Bank of England's base rate cut, she said: "Undoubtedly the biggest winners from the fall in interest rates have been those consumers who have been sat on standard variable rates."

She added that if it was not for this drop many householders would have been forced to remortgage.

The Base Rate cut to 0.5 per cent is a record low and was implemented by the Bank of England to ward off the effects of the recession last year.

A recent survey conducted by the Post Office revealed that nearly three million people do not know their mortgage rate value and warned that such people could fall victim to high interest rates.

People interested in moving house may wish to consider using self storage facilities.

Written by Emily Sanders