The interest rate on a typical five-year fixed agreement has increased again as a result of major mortgage lenders raising rates; it is currently close to 6%.
The Nationwide Building Society and The Halifax, two of the largest lenders in the UK, have raised their rates for new loans.
They are one of several suppliers who have recently changed locations.
Less than a week after the Bank of England increased the base rate, HSBC and TSB upped their rates on Wednesday.
On Thursday, Nationwide boosted its fixed rates, which are offered through brokers, by up to 0.35%, a day after HSBC and TSB both upped their rates by up to 0.55% and up to 0.35%, respectively.
The Bank of England shocked the markets by increasing its benchmark interest rate from 4.5% to 5% on Thursday of last week in an effort to combat the rising pace of inflation.
Several lenders have also increased buy-to-let mortgage rates, which can result in rising rent for renters.
“[Changes] are certainly coming through now,” said Aaron Strutt, of mortgage broker Trinity Financial.
“More of the big banks and building societies are increasing their prices again or pulling their mortgages, which means new borrowers and people looking to remortgage will face even higher repayments.
“We now seem to be in a pretty endless cycle where lenders keep raising rates as they struggle to price their mortgages.”
He advised acting immediately if someone looking for a mortgage spotted a rate they liked and believed gave fair value for money.
He said that some lenders were lowering rates because they were overworked, while others cited rising finance expenses.
High Street banks borrow money from the markets and then lend it to clients in the form of mortgages and other loans, but the expenses they must bear are increasing and have already risen to a level equivalent to that which followed last year’s mini-budget.
