Fixed rate mortgages are already being pulled from the market as the Bank of England faces renewed pressure to raise interest rates to combat inflation which hit 3.7 per cent. First Direct pulled a 3.98 per cent five-year fixed deal, mirroring similar recent moves by Skipton and Newcastle building societies. Halifax admitted any of its deals could be pulled within days. Martin Lewis, of the MoneySaving­Expert website, said: ‘We are sitting on a ticking time bomb in the mortgage market right now. Those who want to fix need to do so now.’ Fears over interest rates followed news that the consumer price index rate of inflation hit 3.7 per cent last month, its highest level since April.

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