An exodus of Halifax customers could be on the cards for the bank as a result of its decision to hike its mortgage rates.
Homeowners look set to pay an additional £735 a year because of the increases - which will see the standard variable rate rise from 3.5 per cent to 3.99 per cent - and forecasters are warning the financial institution could see thousands of people switching to a new lender to soften the blow.
The bank, which is a division of Bank of Scotland, has enlisted the assistance of additional call centre staff to help answer the high volume of calls from disgruntled customers who are eager for an explanation as to why the rates have been raised.
Martyn Bulman, independent financial adviser at Chris Leech and Associates, told the Daily Mail: "It is inevitable that more lenders will follow Halifax and Royal Bank of Scotland's lead and increase their standard variable rates".
By Gary Cooper