moneysupermarket.com: Increases in mortgage rates

Commenting on the recent spate of increases in mortgage rates, Louise Cuming, head of mortgages at moneysupermarket.com, said: “The mortgage market seems to have taken a step away from its once controlling hand, the Bank of England, and has the potential to become an untamed beast.

“Abbey and Halifax have both announced increases to their tracker mortgages for new customers this week, despite the BoE base rate staying at 5.75 per cent.

“It appears we are entering a new playing field in the mortgage arena, where rates have a life away from Bank of England decisions. Homeowners may have breathed a sigh of relief after last week’s hold on base rates, but it is no longer safe to see this as an indication of stability. We are facing a market of increasing turmoil and I suspect that Halifax and Abbey are the first of many big providers to announce increases.

“Unfortunately it appears homeowners are being affected by the credit crunch – and this may be just the start.”