As the liquidity freeze continues, thanks to the ponderously slow response and inaction of the Bank of England, banks and building societies are rationing/withdrawing mortgages and in some cases profiteering.
Halifax is raising rates on trackers and fixes, and will target people with small deposits.
A two year fix for remortgagers with a 5% deposit will increase by 0.45% to 6.79%. However, borrowers with deposits of more than 10% will see smaller increases and those with more than 25% could even see rates fall slightly.
Halifax has also raised rates on its two-year trackers for borrowers who have a 10%, deposit by 0.25% to 6.74%.
NatWest raised its offset mortgage rate by 0.25% to 6.45%, even though Bank rate has been on hold and is expected to fall.
Skipton building society added a £799 fee to its standard variable rate deal offer at 6.7% for new borrowers, unheard of for variable rate mortgages.
Needless to say, this is having a very damaging effect on the already troubled housing market; as people who thought that they could afford to buy a house now find that they can't.