Full list of banks hiking mortgage rates despite interest cut -including Nationwide, Santander, HSBC

Mortgage payers are set to face higher bills - despite a cut in interest rates. A number of lenders have increased their mortgage rates despite the Bank of England (BoE) move to lower the cost.

Many point to an expected increase in inflation following the government's budget. Meanwhile, hundreds of offers have been removed from the market. It comes despite the fact that the Bank of England confirmed that interest rates would go to 4.75 per cent in the backdrop of a 1.7 per cent inflation rate (below the targeted 2 per cent inflation rate).

Another key factor in increased mortgage rates is the impact of swap rates. These are the rates at which lenders exchange fixed interest payments for variable payments and which are often priced based on future interest rate predictios.

On average, a two-year fixed mortgage this week hit 5.44 per cent, compared to 5.39 per cent which was in place before the Bank of England's interest rate announcement. Hina Bhudia, a partner at Knight Frank Finance, said: “It often takes one large lender to prompt a broader shift in mortgage pricing and announcements of rate hikes are now coming thick and fast.

“The outlook for interest rates has changed and the market needs to reprice as a result. The moves we’re seeing aren’t small either. We’ll need a real and enduring change in the inflation outlook for mortgage rates to begin falling again, which means the recovery is on pause for now.”

Nicholas Mendes, mortgage technical manager at broker John Charcol said: “While many lenders have opted to maintain their existing rates to preserve business volumes and service standards, those offering competitive pricing have been forced to adjust, likely due to applications levels. These influxes often stretch service levels, prompting rapid rate changes to manage demand effectively.

“Adding to the pressure, swap rates – key indicators used by lenders to price fixed-rate mortgages – have edged upward, further necessitating these adjustments. The combination of market dynamics and rising swap rates highlights the difficult landscape borrowers are navigating.”

All the banks that have hiked their mortgage rates

Barclays - two-year 5.15% fee-free fix (90% loan value) increase to 5.49% Coventry Building Society - closing applications to new borrowers HSBC - Raised costs on two, three, five, and 10-year deals Nationwide - five-year fixed rate deal from 3.94% to 4.14% Santander - residential fixed rates increase by 0.29% TSB - two and five-year deals increase by up to 0.3% Virgin Money - Products now start at 4.39%

A Nationwide spokesman said: “Nationwide is not immune to the current swap rate environment and the changes we’re making on our fixed-rate range are reflective of that and the rate changes happening across the market. Our tracker rates are seeing a reduction to reflect last week’s bank rate decision.

"We continue to support existing customers with our pricing pledge and remain competitive and well-positioned in the market to support all borrowers.”