The rate of interest charged on home loans is set to increase, it has been suggested.
According to Fool.co.uk, as the rate at which banks lend to each other - known as the London Interbank Offered Rate (Libor) - rises, so too will mortgage rates for consumers.
The website suggests that since the banking problems of last week, Libor has increased to above six per cent.
David Kuo, head of personal finance at the website, commented: "Libor is a better guide to the costs of fixed-rate and standard variable-rate mortgages than the Bank of England base rate."
He therefore urged consumers who are about to come to the end of a fixed-rate mortgage deal to apply for a new one immediately before the price of home loans rises again in accordance with Libor rates.
Meanwhile, figures produced recently by the Co-operative Bank and Places for People found that first-time buyers in the UK looking to secure a property require average savings of £19,100 in order to get a mortgage.
