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Mortgage lenders increase interest rates

23/06/2008

A recent survey carried out showed that lenders are still increasing mortgage interest rates.

Halifax, one of UK’s largest lenders, increased the cost of its fixed rate mortgage products by nearly 0.5 per cent, following its tracker product which has also been increased by 0.3 per cent.

Lloyds TSB has increased its fixed rate products by 0.3 per cent, leaving their two-year fixed rate mortgage to 6.44 per cent for all new borrowers. People who are looking to borrow 90 per cent will face interest rates of 6.75 per cent.

A Halifax spokeswoman commented: "Swap rates have moved up in recent weeks, that means that fixed rates have become more expensive. Unfortunately, these increased costs have to be passed on to new customers by banks and building societies."

Bristol & West also increased its rates by 0.75 per cent and the Woolwich increased its lifetime tracker product by 0.25 per cent.

Fixed rate mortgage deals have reached its peak through the last ten years, with two-year fixes averaging at a staggering 6.75 per cent.