A number of lenders have been hiking up their fees in order to be able to offer a competitive rate to pull in borrowers following the Bank of England’s surprise interest rate rise.
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Abbey, for example, kept its two-year fix at 4.99 per cent since the rise but pushed up the arrangement fee from £799 to £999 until the deal was made unavailable on Thursday.
Nationwide has also put its fee up from £799 to £899, while Northern Rock’s fee on its two-year fix increased from £895 to £995.
Melanie Bien at Savills Private Finance said: “Some lenders have pulled their fixed rates and not yet replaced them.
“Those that have launched new deals have either significantly hiked the rate, or kept the rate low but increased the initial charge. Borrowers need to pay particular attention to fees.”
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Meanwhile, property website Rightmove is predicting that house prices will increase by six per cent across the country this year despite the increase in interest rates this month.
The amount of properties up for sale is at its lowest for three years helping to lift average prices by 0.1 per cent so far this month, the website said.
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