Britain’s top lender ups mortgage rates

Halifax, which is the biggest mortgage lender operating in the UK, has revealed its decision to increase the interest rates on its home loan deals.

With millions of people struggling to become debt free, many had hoped that the financial service firm would decide to follow the Bank of England’s lead and trim its interest rates.

Two-year fixed-rate and base rate tracker mortgages offered by Halifax will be charging higher levels of interest from now on and the bank has described the move as a “win win” for itself and its customers by encouraging them to switch to longer-term fixed rates.

Halifax’s announcement came shortly after its representatives met with the prime minister and he has drawn criticism from various sources who claim he must not have a meaningful relationship with financial firms, the Guardian reports.

The Bank of England reduced the base rate of interest by a quarter-point this month after having also done so in February and in December 2007.