A growing number of homeowners are gambling with a one-year fixed rate mortgage instead of locking into a longer term fix in the hope that rates will fall.

One year fixed-rate deals can suit homeowners who want the certainty over their monthly payments but do not want to lock in for long because they believe rates will fall and do not want to miss out on cheaper deals.

Mortgage rates started falling in August after the Bank of England cut its base rate of interest from 5.25 per cent to 5 per cent.

On the day of the rate cut, the average two-year fixed mortgage rate was 5.77 per cent. Now it is 5.39 per cent.

Further cuts are expected, with many economists believing that



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