Halifax hikes borrowing rates

Britain's biggest mortgage lender Halifax announced today it would be passing the full 0.25% hike in interest rates on to its borrowers.

Halifax said it would be increasing its standard variable rate to 5.75% from December 1 and would be reviewing its savings rates later this month.

It said the move would cost someone with a £60,000 mortgage around £9 a month, increasing their monthly repayments to £377.46.

Earlier today Abbey said it was raising its standard variable rate by 0.21% to 5.75% from November 12, while its variable tracker rate mortgage will rise by 0.25% to 3.55%.

At the same time Abbey said it would be increasing its savings rates by an average of 0.21%.

The Bank's Monetary Policy Committee raised interest rates for the first time in nearly four years last week, increasing the base rate by 0.25% to 3.75%.

Nationwide Building Society announced on the day that it would be raising its base mortgage rate by 0.35% to 4.89%.

Cheltenham & Gloucester - which is part of Lloyds TSB - First Direct and HSBC have all also said they will pass on the full 0.25% to their mortgage customers.

Other lenders, including Barclays and Bank of Scotland, said they were still reviewing their rates.

NatWest today announced it would increase the interest it paid on a range of its savings accounts by 0.25%, but its mortgage rates remain under review.