Halifax, one of the nation’s largest lenders, announced today that they were raising the rates on their two year fixed mortgage loans. Even though banks are being encouraged by the government to drop their rates, few are paying heed and some are bucking the advice altogether and raising the rates higher. Experts feel that the move from Halifax on their fixed mortgage rates is very significant and is the company’s way of getting a point across on the state of their current mortgage holdings. Other banks may follow in Halifax’s footsteps, making it more difficult for consumers to get a fixed mortgage at a decent rate.One mortgage expert said: “A jump of this size means Halifax are pricing themselves out of the two year mortgage market — they clearly don’t want the business.”Simon Knight, the chief executive of GMAC-RFC, which today announced 280 job cuts, said: “Liquidity available for mortgages has continued to diminish in the UK market into 2008. The reduction in our workforce is a direct response to current market conditions, and reflects our expectation that these conditions will prevail for some considerable time. In a much smaller market, with less liquidity generally, it is sadly necessary to take this step.”
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