Rate fears

It looks increasingly likely the Chancellor will sanction a rise in base rates when he meets the Governor of the Bank of England next Wednesday. Prices data released this week suggest an increase of 50 basis points - leading inevitably to a furth er round of mortgage rate rises.

Household Mortgage Corporation yesterday became the latest to raise mortgage rates following the December base rate rise. Its variable rate rises 0.34 per cent to 8.49 per cent, and its two-year fixed rate from 4.99 to 5.99 per cent.