Homeowners considering taking out a new mortgage in December may find themselves paying more than they would have last month as companies continue to increase rates.
Lenders are beginning to up the prices on new products despite claims from George Osborne that low borrowing costs were helping “the security of British families”, reports the Financial Times.
During the last week alone, Northern Rock, Nationwide, Clydesdale Bank, The Mortgage Works and Skipton Building Society have raised a selection of mortgage rates.
This comes after the Bank of England’s recent Financial Stability Report predicted the payments would increase significantly next year as banks pass on higher wholesale funding costs.
Aaron Strutt from mortgage broker Trinity Financial said: ” Mortgage rates have been steadily increasing over the last few weeks and some lenders have put their rates up two or three times.”
Last week, Sir Mervyn King – governor of the Bank of England – called the current economic situation “extraordinarily serious and threatening” and urged banks to cut staff bonuses.