Halifax has confirmed it is to raise interest rates on its mortgage products. A spokesperson for the lender, which is the UK’s largest mortgage p
Halifax has confirmed it is to raise interest rates on its mortgage products.
A spokesperson for the lender, which is the UK’s largest mortgage provider, confirmed rates would be increasing by up to 0.2 percentage points from today (2 October).
They added that some products would only change by between 0.05 and 0.1 percentage points.
The spokesperson said: “Our mortgage rates are determined by a number of factors and we regularly review our products and policies to ensure they continue to meet customers’ needs.”
Mortgage rates have been at record lows and falling since the Bank of England cut the base rate to 0.25 per cent in August 2016.
But Halifax’s move is the latest indication that the era of record-low mortgage rates could be coming to an end.
In an interview with the BBC’s Today programme on Friday (29 September), Bank of England governor Mark Carney said interest rates could rise “in the relatively near term”.
His statement led to speculation the rate increase could come as early as 2 November, which is when the Bank’s Monetary Policy Committee next meets.
After Skipton and Nationwide increased rates last week, Daniel Bailey, principal at Derbyshire-based Middleton Finance, said: “We could be seeing the first tentative signs that lenders are now looking to increase fixed rates ahead of a potential increase in the Bank of England base rate before the end of the year.
“Mark Carney has predicted many times that interest rates were going to increase and nothing has happened. It almost feels like rates need to increase for him to keep any credibility. Now may be the time to fix into a fixed-term deal if you have been sat on standard variable rate for some time.”