Mortgage lenders pull fixed-rate mortgages

A series of lenders have pulled their fixed-rate mortgages off the market in the wake of the Bank of England's decision to increase interest rates last month.

In the recent past banks and building societies have had time to prepare for any increase in interest rates, with the Bank's interest rate setting Monetary Policy Committee (MPC) normally signalling its intentions well in advance. But this month's decision caught the market unprepared.

"The shock announcement of last week’s base rate increase may have taken lenders by surprise, with most industry experts expecting the rise to occur in February or March," said Julia Harris, of Moneyfacts.co.uk.