An average two-year fixed-rate mortgage deal is £35 a month more expensive than a few weeks ago, new figures show.
The interest charge has gone up by 0.3% since recent data showing inflation not coming down as quickly as expected, finan
cial data firm Moneyfacts said.
The surprise led many to predict the Bank of England will raise rates higher than previously thought, from their current 4.5% to as high as 5.5%.
It has prompted many lenders to raise mortgage rates and also remove deals.
Hundreds of mortgage deals have now been pulled from the market as lenders reassess their offers.
Over the weekend, several lenders made changes to their mortgage deals which are expected to further squeeze the budgets of households and firms.
Santander's new business mortgage rates increased between 0.05% and 0.43% on Monday, and Coventry Building Society is hiking its two-, three- and five-year deals on Tuesday.
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According to Moneyfacts, the average two-year fixed rate on a £200,000 mortgage over a 25-year term is now 5.64%.
That compares with 5.34% before the latest inflation data.
It comes as new data from UK Finance shows people increasingly taking out mortgages over longer terms, with a record one in five first-time buyers opting for mortgages of more than 35 years.
UK Finance suggested customers might be choosing this option "in order to lower monthly payments and, thereby, improve their affordability
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