Mortgage rates are going up - with fears very cheap deals are ending
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Two of Britain's biggest banks have joined a wave of lenders to raise mortgage rates.
Barclays and RBS-owned NatWest are acting before an expected doubling of the base rate by the Bank of England.
At least 20 firms have raised fixed-rate deals since September 21.
David Hollingworth, of London & Country Mortgages, said: "This is the beginning of the end for very cheap mortgages and will push up out goings for households when they come to get a new mortgage, adding to higher inflation in general."
Barclays yesterday increased two year fixed-rate mortgages by up to 0.2%. NatWest hiked its two and five year fixed-rate deals by up to 0.9%.
The lender raised 45 fixed-rate deals in total. The biggest jump is on a five-year fixed-rate deal for those remortgaging who need to borrow 85% of the value of their home. The rate has soared from 2.38% to 3.28%.
The rises follow speculation that the Bank of England's Monetary Policy Committee will double the base rate to 0.5% next month.
Barclays said: "The slight increase in rates on part of our product range is due to an increase in the cost of funding."
The rate hikes came as a shortage of homes for sale fuelled a pick up in house prices last month. The average property leapt 4% in value year on year, marking the highest figure since a 5.1% increase seen in February, said the Halifax.
The average house price across the UK in September is now £225,109.