Cheltenham & Gloucester Building Society yesterday became the first mortgage lender to increase its rates after last week’s quarter-point base rate rise.
Only mortgages with fixed-rate periods for new borrowers are affected. C & G withdrew five of these including its market-leading mortgage fixed at 7.25% a year for five years. The replacements cost between 0.3% and 0.5% percentage points more a year.
Ian Darby of mortgage brokers John Charcol is expecting most big lenders to follow suit.
- Financial Times 06/11/96 page 18
