Five lenders move at once

NatWest, Santander, HSBC, Lloyds and TSB all announced mortgage rate increases within hours of each other, days before the Bank of England's next interest rate decision on Thursday.

Why rates are climbing

Lenders are pricing in worry about where inflation and interest rates go next. Experts now expect as many as five base rate rises between now and the end of next year.

Santander swings hardest

From tomorrow, Santander lifts two-year fixes by up to 0.45 percentage points and five-year fixes by up to 0.4. Its 4.52 per cent two-year deal from a few days ago is gone.

“These Santander rates are going to come as a bit of a shock to customers who check today and again on Wednesday.”

A broker's disbelief

Aaron Strutt of Trinity Financial said the scale of the same-day move is something he has not seen before in his time watching the big lenders.

“I can't remember the last time five of the big six lenders hiked their rates on the same day.”

The sub-5 deals disappear

Barclays' market-leading 4.55 per cent two-year fix with an £899 fee goes to 4.75 per cent, having only risen days ago. HSBC now starts at 4.79 per cent over two years and 4.75 over five.

“It looks like Barclays has raised lots of its deals to over 5 per cent, which is something we were hoping would not happen.”

Building societies follow

Nationwide and other mutuals are repricing for the second time this week too, with selected fixed rates up by as much as 0.3 percentage points.