Major fare increases in Santander, Virgin and Clydesdale

Santander is also making changes to the rates it uses when assessing affordability in order to continue to lend responsibly.

The bank says there will be only small changes to housing affordability, but buy-to-let stress rates will increase by 50 basis points.

However, there was a glimmer of hope for borrowers this afternoon as two- and five-year swap rates have both fallen by around 9.5 basis points from their highs yesterday.

In Clydesdale, the biggest interest rate increases are on residential product transfers, with fixed rates rising by as much as 78 basis points.

These are some of the biggest moves yet, although Nottingham rose about 80 basis points this week.

Clydesdale is also increasing transfers of buy-to-let products by up to 60 basis points and some discount deals for home purchases and mortgage refinancing by up to 20 basis points.

At Virgin Money, some interest rates will rise tomorrow by as much as 70 basis points for residential two-year purchase fixes.

The five-year fixes for purchasing and the two-year fixes for refinancing a mortgage will increase by up to 65 basis points, among many other substantial increases.

The Mortgage Works is increasing prices on many of its products tomorrow and new rates have already been published on the intermediary’s website.

It follows similar announcements earlier today by nat.

Calculations from Moneyfacts show that borrowers taking out a five-year loan this month could face a shock payment jump of £4,655 per year, based on a £250,000 mortgage at average interest rates.

Aaron Strutt, product and communications director at Trinity Financial, said: “It will be interesting to see when interest rates start to fall again and how slowly they fall.

“Swaps have fallen a lot since the peak, but the rises keep coming.

“If anyone thinking about taking out a Virgin Money or Clydesdale mortgage waits until tomorrow, they will end up paying significantly more.”