The mortgage market has remained the biggest loser in the current credit crisis with products perpetually evaporating and lenders raising rates, making borrowers feel the most pain.

In recent weeks, almost every major lenders increased its rates and either blaming it on rising swap rates or the fact that rivals had done so and they needed to emulate them or be overwhelmed with applications from intending borrowers.

Last week the country’s two biggest mortgage lenders, Halifax and Lloyds TSB increased their rates, in a move that came with no surprises for speculators and homeowners. Actually, the credit crisis has done so much harm that people have become used to expecting anything to happen, particularly to the mortgage market. This, perhaps, explains why people were not so shocked to learn about yet another rates increases by lenders, even of the standing of Halifax and Lloyds.

Halifax had increased the cost of half of its fixed rate products by about 0.5 per cent, while five of its trackers had been increased by 0.3 per cent.

The lender explained that its action was necessitated by the increasingly rising cost of borrowing through the wholesale market. Usually banks and building societies turn to the wholesale market for help as they face increased demands from customers. This market usually determines borrowing rates on the basis of swap rates on the market.

Swap rates have, since the beginning of the credit crunch, been anything but stable. As they rise the costs of borrowing keep rising too and with the increased costs lenders often find an escape route by passing on the costs to borrowers, especially new customers. This has been the survival methodology employed since the crisis fatally dealt a blow on the global financial market.

 “Over the past few weeks, most major lenders have increased their pricing on a number of occasions. Wholesale money is very expensive,” said a Halifax spokesman in a bid to justify the rises. He also went further to add that swap rates had also “moved up recently”, which affected fixed rates mortgages and made them more expensive.

Lloyds TSB had in the same vein increased its fixed rate deals, raising them by 0.3 per cent, to give a two-year fixed rate mortgage of 6.44 per cent for people borrowing 75 per cent of their home’s value, jumping to 6.75 per cent for people borrowing 90 per cent.

About six months ago when the credit crisis surfaced, many people had thought by now it would be over and solutions would have been proffered. But the contrary is the case and the problem continues to get worse.

In the US, where it all started with the sub-prime mortgage crisis, the economy, although coping, is far from its old robust self. Here in the UK inflation has reached a record level making the financial crisis a lot more serious.

People are struggling to survive, making sure they do not lack in basic necessities. But the crisis in the mortgage market makes even their effort to survive more challenging.

However, one way to beat the problem, according to experts is to prioritise expenses and focus on the most important ones. People need to get rid of their disposable expenses, pay-off loans and debts and lessen the burden, a bit, for themselves.

Surviving at a time like this requires a lot of strategising. And good strategies could help people get out of debt and keep up mortgage repayments. Even in the face of incessant rates increases there is always a way out.