Thousands of mortgage borrowers with Halifax and Nationwide Building Society were among the first to face higher mortgage repayments today, as the two lenders announced increases to their standard mortgage rates.

Halifax, the UK's biggest mortgage lender, will increase its standard variable rate (SVR) from 6.75 to 7 per cent in response to yesterday's quarter point rise in the Bank of England base rate from 4.75 per cent to 5 per cent.

A Halifax borrower with a £100,000 loan will see monthly repayments increase by £16 a month, from £691 to £707. The total cost over the year will come to £192. New Halifax customers will immediately start paying the new rate. For existing customers, the new rate will take effect from December 1.

Nationwide, the UK's biggest building society, will raise its SVR by a quarter point to 6.49 per cent on December 1.

A borrower with a £100,000 mortgage will see monthly repayments increase by £15.53, from £659.05 to £674.58. The total additional cost over a year will be £186.36.

Abbey, the UK's second biggest mortgage lender, is yet to announce an increase, although the bank is expected to follow Halifax's lead and increase its rate by 0.25 per cent, to 7 per cent.

Fears are growing that many homeowners could struggle with repayments because of the increase in borrowing costs.

Mortgage experts are urging those affected by the rise to review their mortgage arrangements and switch to a cheaper deal immediately. Nick Gardner, of Chase De Vere Mortgage Management, the broker, said: "There really is no excuse for being on your lender's standard variable rate. We are urging all borrowers in this position to switch to a cheaper fixed rate as soon as possible before the last of the good value fixes disappear."

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