Lenders are raising interest rates on mortgages as demand outstrips their ability to fund loans, according to the Bank of England. There were 51,100 mortgage approvals to buy homes in June, compared with 45,000 in May, the Bank reported in its Trends in Lending monthly survey. That is the highest level of lending since early last year, and consistent with signs of stabilisation in the housing market.

However, some lenders told the Bank that a pick-up in demand had led them to increase rates on fixed-rate mortgages above the rise in swap rates.

Financial Times