Halifax, the UK's biggest mortgage lender, is expected to deliver more woe to homeowners and first-time buyers tomorrow when it raises its fixed rates on loans by 0.5 percentage points.
The move, Halifax’s twentieth rate change since the beginning of the year, will hit homeowners on all levels, including those who hold a high level of equity in their property.
Homeowners who have more than 25 per cent equity in their houses, which have previously been shielded from the worst of the recent rate rises, now face an increase on a two-year fixed-rate mortgage from 6.49 to 6.99 per cent.
On a £150,000 home loan, this adds £47 a month to repayments.
Borrowers seeking larger loans for up to 90 per cent of their property's value will see the rate on a two-year fixed loan increase from 6.79 per cent to 7.29 per cent.
Halifax is also expected to increase the rates on three and five-year mortgages though by slightly smaller margins.