Halifax has today (2 October) become the third lender in less than a week to increase the interest rates on its mortgage products. Its rates will increase by up to 0.2 percentage points, although for some products the rise will only be between 0.05 and 0.1 percentage points.

The Halifax’s move follows increases last week by Nationwide and Skipton. On 28 September Nationwide increased its two-year fixed rates by 0.25 percentage points for 60 per cent and 75 per cent loan-to-value (LTV) deals and by 0.1 percentage points for LTVs of 80 and 85 per cent.

Skipton, meanwhile, has withdrawn a number of its buy-to-let deals and, on 29 September, increased rates on a tranche of its residential mortgage products by an average of 0.16 per cent.

Bolton-based Heavenly Finances Ltd director Calvin Husbands said: “This move by the Halifax is another indicator of the direction in which rates are starting to travel, and that it is an appropriate time for advisers to contact clients who are approaching the end of their existing deals, to talk to them about fixing their mortgages for the longer term. We are finding that the clients we are discussing this with now are looking to fix for three to five years.

“Historically, longer-term fixed rates have been the ones that have risen the most. Given the uncertain outlook for inflation, and Mark Carney’s latest pronouncements, now is probably the right time to secure long-term deals for clients who need them.”

In an interview broadcast by BBC Radio 4’s Today Programme on 29 September the Bank of England Governor Mark Carney stated that the Bank’s base rate could rise “in the relatively near term”. Speculation is now rising that the Monetary Policy Committee of The Bank of England could increase rates from their record low of 0.25 per cent as soon as 2 November, when its next scheduled meeting will take place.

Commenting on the prospect of higher mortgage rates, a spokesperson for UK Finance, the new trade association that includes the former Council of Mortgage Lenders, told Money Age: “Borrowers are currently being helped by low interest rates, but we know that mortgage costs will rise at some stage.

“It is important therefore for customers to plan ahead and consider how their finances would be affected in those circumstances. As ever, lenders will continue to help borrowers resolve any financial difficulty if possible, so customers should not hesitate to contact their lender if they anticipate any payment problems.”

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