The moves had echoes of a more severe temporary shutdown of the mortgage market in late September and early October last year, sparked by investor reaction to former Prime Minister Liz Truss' economic agenda.
According to Halifax's latest product guide for brokers, the rate on a two-year deal with a loan-to-value ratio of up to 60%, available for a 999-pound fee, will rise to 5.36% on June 7.Two-year deals rather than five-year deals are currently popular among borrowers who hope that rates will fall again soon.
"This latest increase by the biggest mortgage lender in the UK will spook buyers and sellers alike not to mention those due to re-mortgage in the next few months," Lewis Shaw from broker Shaw Financial Services said. Property website Rightmove said on Tuesday this was the first week since January that rates have averaged 5% or more across all LTV brackets.