<p>Banks and building societies began withdrawing cheap fixed rate mortgage deals last month in anticipation of two or three interest rate rises in the near future. The move came after the inflation rate hit a ten-year high of 3.1% and some analysts predicted interest rates could reach 6%. Lenders including Halifax, Alliance and Leicester, and Portman Building Society, all pulled deals. If base rates hit 6% monthly costs on an interestonly mortgage of £200,000 will rise by £125. Fixed rate mortgages are by far the most popular way of borrowing money amongst home buyers, according to a recent survey by Spicerhaart Financial Services. </p> <p>This trend has strengthened as interest rates have risen. In March this year 91% of borrowers opted for a fixed rate mortgage, following January’s rate rise. In October last year, before November’s quarter point rise, around 80% opted for a fixed rate mortgage. Spicerhaart operations director Steve Cox said: “It is almost certain that there will be a further base rate rise in the next couple of months. As a result, we expect there to be a surge of borrowers looking to switch their mortgages to a fixed deal in the forthcoming few weeks during the …