Fixed Rates

BORROWERS who want to fix their mortgage are being urged to act quickly after two of the country’s biggest lenders pulled their deals and economists warned a Bank rate of 6% looks more likely.

Halifax last week hiked the rate on its top two-year fix from 5.49% to 5.79%, while Abbey recently increased its best deal from 6.19% to 6.24%.

Other lenders have followed, with Portman upping its two-year fix from 5.29% to 5.69% and Northern Rock hiking its deal from 5.49% to 5.69%.

Louise Cuming of Moneysupermarket, a comparison site, said: “Borrowers needing the stability of a fixed rate product should reserve their next deal now if their mortgage term is coming to an end. Fixed rates appear to be going up – and fast.”