Mortgage lenders continue to hike up their rates leading to increased concern for people planning on taking out loans on property.

Halifax, one of Britain’s biggest mortgage groups increased their borrowing costs of half of its fixed rate products by up to 0.5 per cent, while five of its trackers have been increased by 0.3 per cent.

Lloyds TSB also raised its fixed rate deals by 0.3 per cent. And fears that interest rates will rise again rather than fall have not been quelled,as three major mortgage lenders also increased their rates at the end of last week. Increasing their fixed mortgage rates by up to 0.95 per cent, this move by Bradford & Bingley, First Direct and the Co-operative Bank has only added to the already fast-growing cost of borrowing.

The Abbey is also among those making changes having reduced the arrangement fee for its offset mortgages by £1,000 to £1,499.