Despite the Bank of England keeping base rates at a record low, banks have started to raise their rates on fixed-rate mortgages.
At least 11 banks or building societies, including NatWest, Santander, Nationwide, Halifax and Barclays, have increased the cost of some of their fixed-rate products over the last few weeks.
Barclays has increased the cost of its two-year fixed mortgages by up to 0.2% and repayments on a two-year fix at 60% loan-to-value will go up from 1.09% to 1.29%.
According to London and Country Mortgages, this means anyone borrowing £125,000 with Barclays will have to pay an extra £11.48 a month or around £137 a year.
NatWest will be increasing its five-year fix by 0.9% whilst its two-year fix will see a rise by around 0.16%.
Around four million people in the UK currently have fixed-rate mortgages, but no one on a fixed rate will see any changes until their current deal expires.
The cause of the rise is due to lenders having to pay more to access funds necessary to lend to homeowners. Despite base rates staying the same, swap-rates have increased which means banks and lenders expect base rates to rise soon.
This expectation has been all but confirmed by the Bank of England itself who has already suggested that base rates will rise in the relatively near term. Whilst there is no set date for the rise, some believe it could be as early as next month.
