Three major mortgage lenders raised rates this weekdespite the efforts of Bank of England to reduce borrowing costs.

Santander, HSBC and TSB increased their rates by up to 0.3 percentage points. These measures come as mortgage lenders have had a rush through customs, brokers say. They raised rates to ease demand, even after the Bank of England last week cut borrowing costs by 0.25 percentage points.

The number of approvals for homebuyers increased to a new two-year high in September, with 65,600 loans being approved – 700 more than in August, according to the Bank of England.

Nick Mendes, technical head of mortgages at broker John Charcol, said: “While many lenders have chosen to maintain their existing rates to preserve business volumes and service standards, those offering competitive prices have been forced to adjust, probably due to demand levels.

“These surges often stretch service levels, leading to rapid rate changes to effectively manage demand.

Mr Mendes said striking a deal now was a good idea; if rates fall, you can renegotiate. If they increase, you can stick to your agreement.

“For customers nearing the end of their fixed rate contract, it is essential not to delay in the hope that rates will return to levels seen weeks ago. Reaching a deal now provides certainty in an uncertain market. There is always the opportunity to review and adjust if circumstances change, but acting quickly minimizes exposure to further rate increases.

These measures now put Barclays among the best deals, with a two-year fixed rate of 4.11 per cent for those with a 25 per cent deposit.

With a 40 percent deposit, NatWest offers 3.96 percent. Locking in for five years means lower rates of 3.84 per cent for a large deposit, or 3.89 per cent for 25 per cent, both with NatWest.

The recent general trend for mortgage rates is down from highs recorded two years ago following former prime minister Liz Truss’ mini-horror budget.

But a number of inexpensive products have been withdrawn from markets in recent weeks. Santander has withdrawn a 3.68 per cent five-year fixed rate product for borrowers with a 40 per cent deposit in their home.

The budget also announced more expensive borrowing in commercial markets, with traders betting that additional spending would have an inflationary impact on the UK. This has an effect on mortgage rates.

This effect is visible in the yields offered on UK government debt. The day before the budget, 10-year bonds yielded 4.32 per cent, compared to 4.42 per cent today. This drives up the cost of borrowing for most.