Libor rise leads to lenders' rate hikes
The recent financial turmoil on the markets is leading to wide-ranging mortgage rate increases.
HSBC, First Direct and the Woolwich have all announced rate hikes, as a direct consequence of banks becoming less willing to lend to each other in the troubles.
With stock markets showing severe volatility following the bankruptcy of US firm Lehman Brothers and the "shotgun wedding" takeover of HBOS by Lloyds TSB, the rate of inter-bank lending is on the up.
Known as Libor, it is a key indicator of confidence among banks - which depend on money from other firms for much of their revenue.
Libor has risen sharply over recent days and now stands at well over six per cent - an expensive rate which has squeezed revenue at banks, some of whom are now passing this cost on to the consumer.
"I think the majority of lenders are looking at the pricing of their mortgages," Aaron Strutt at mortgage brokers Chase De Vere told the BBC.
HSBC is increasing fixed rates for some mortgages by 0.3 percent, while First Direct is to put up its two year fix by 0.2 percent.
Meanwhile, the Woolwich has hiked its three-year and five year fixes by 0.35 and 0.25 per cent respectively.
Recent research from Equifax shows that nearly a quarter of people who have tried to secure a mortgage loan this year have found it "difficult" to get a competitive deal.
Regional Debt Advice; Debt Advice Woolwich,