It is expected that the Bank of England will be putting up interest rates imminently, the first interest rate rise in over a decade. This has resulted in 10 lendersraising their mortgage rates in the same week.
With rates being so low for so long may see a scramble by borrowers to take out a low-rate deal while they are still available.
Those who will be affected by the rise are new borrowers seeking a fixed rate mortgage.
Nationwide, one of the ten lenders, raised their rates on their cheapest two-year fixed deal from 1.19 per cent to 1.44 per cent.
The Halifax has followed suit by increasing its interest rate by 0.2 per cent on selected fixed rate products, the Monmouthshire Building Society, Newcastle Building Society and Aldermore have increased theirs by 0.1 and .025 per cent. Other leading lenders: Skipton, Leeds and Coventry Building Societies and Santander, have also adjusted their rates.
David Hollingworth of London and Country brokers said even though the rate increases by lenders were small, there is the chance they could mushroom as other lenders adjust theirs to stay competitive.
There are still great deals for borrowers out there but they need to act fast to secure one.
