Three leading lenders raise interest rates
Three leading lenders have announced yet another round of interest rate rises.
Bradford & Bingley (B&B), First Direct and the Co-operative Bank have all increased the cost of their fixed-rate loans, as the rates at which lenders borrow on the money markets continue to rise.
B&B has hiked rates on its residential fixed-rate mortgages by between 0.5% and 0.7%.
Meanwhile, its lifetime variable mortgage rate has risen by 0.1% and interest on its fixed-rate self-certification mortgages has increased by 0.95%. The lender’s buy-to-let loans have seen a 0.3% rise in rates.
First Direct has increased its two-year fixed-rate mortgage by 0.16% to 6.15%; the Co-operative Bank has raised its three-year fixed-rate mortgage by 0.7% and its five-year fixed-rate deal by 0.9%.
Earlier this week, financial website Moneyfacts, reported that new borrowers taking out two-year fixed-rate mortgages can now expect to pay interest at over 7% as rates on this highly popular type of home loan are at their highest since February 1997.