HBOS has increased rates on a range of its two-year fixed rate and tracker deals despite calls from Gordon Brown to follow the Bank of England's rate cut lead.
The move by the country’s biggest mortgage lender comes barely a fortnight after it announced it would raise borrowing costs for customers with a deposit under 25%, and only hours since a meeting between top bankers and the Government.
Halifax kept its three and five-year fixed rates stable.
Industry commentators said the move was yet another example of providers being unable to cope with demand and hinted at a lack of trust between banks and Downing Street.
The Bank of England yesterday announced it would provide a further £15bn into the financial markets to ease liquidity concerns.
That announcement came shortly before a 90-minute meeting with bosses at Lloyds, Barclays, HSBC, HBOS and the Royal Bank of Scotland, in which Gordon Brown is said to have discussed a range of measures to manage the crisis in the mortgage market.
Part of the discussions were thought to include measures to ensure banks pass on interest rate cuts to borrowers, but HBOS has opted against this suggestion.
Today, Brown meets with US bankers in an attempt to halt the credit crunch.
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