Halifax and Barclays increase mortgage rates amid Budget jitters [Video]

Two of the biggest mortgage lenders Barclays and Halifax have increased their mortgage rates in a new blow to borrowers and first time buyers

Barclays said that from tomorrow most of its rates for purchase and remortgage will go up by 0.2%.

The move means that it will no longer be offering rates below 4% except for a five year fixed deal for purchase for buyers with a deposit of at least 40%. This rises from 3.76% to 3.96%.

However all its two year fixed deals are now back above 4% with its lowest priced product, for Barclays Premier bank customers only, rising from 3.87% to 4.07%.

Meanwhile Halifax, the country’s biggest mortgage lender, said rates on its two and five year remortgage products will go up between 0.11% and 0.24%, also from tomorrow.

The moves follow a sharp rise in gilt yields that are used to price fixed rate deals as the City started to …