Mortgage lenders yesterday rushed to withdraw cheap fixed-rate deals in response to the Bank of England’s decision to raise the cost of borrowing.
Most lenders, including Northern Rock and Woolwich, had already begun raising fixed rates by about 0.25 percentage points but the latest move by the Bank of England has forced many to lift rates even further.
Halifax announced it would increase its standard variable rate from 7 to 7.25% from 1 February, while Nationwide, which is still offering 4.84%, said its fixed rates were being kept under review.
