The average rate for a two-year fixed mortgage eased to 4.71% this week, down from 4.74% last week, while the average five-year fixed deal was unchanged at 4.94%, according to data from Uswitch

 Major lenders are moving in different directions this week. Barclays increased its cheapest deals on five-year and two-year fixes, while Halifax decided to cut its lowest two-year offer even further.

The average rate for a two-year fixed mortgage eased to 4.71% this week, down from 4.74% last week, while the average five-year fixed deal was unchanged at 4.94%, according to data from Uswitch.

The Bank of England (BoE) has cut interest rates to 4%, which is providing some relief to homeowners who should see their mortgage payments go down. At the same time, the primary inflation measure, the consumer price index (CPI), rose to 3.8% in the 12 months to July, well above the BoE’s 2% target.

Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: Mortgaged homeowners and first-time buyers may feel disheartened by the latest inflation reading. Rising inflation can dent affordability and reduce their borrowing power, making it harder to secure a mortgage or move up the property ladder.

Rising inflation also puts a spanner in the works for those hoping for mortgage rates to ease more dramatically, she said. Persistent price pressures may cause the central bank to delay further easing. While affordability has improved for buyers in recent months, thanks to lower mortgage rates and lenders relaxing their stress test rules, rates may not be easing as fast as people hoped.

The financial strain facing UK mortgage holders has intensified, with new analysis revealing that average borrowers are spending nearly half of their gross income on repayments, bringing affordability close to its weakest point since the 2008 financial crisis.