The mixture of moves on mortgage deals comes after the Bank of England (BoE) opted to keep interest rates on hold at 4% last week

Halifax cut some of its mortgage rates this week, as other major lenders held or raised their rates on borrowing.

The average rate for a two-year fixed mortgage rose to 4.81% this week, while the average five-year fixed deal came in at 5.03%, according to data from Uswitch. Those are the average rates on 75% loan-to-value (LTV) mortgage, meaning buyers need to have at least 25% for a deposit.

The mixture of moves on mortgage deals comes after the Bank of England (BoE) opted to keep interest rates on hold at 4% last week, dealing a blow to mortgage borrowers across the UK.

Santander withdrew its two-year fixed-rate 60% LTV mortgage product for first-time buyers on borrowing of less than £250,000 on 19 September. A spokesperson for the bank said that the “change was part of reprice following the changes to swaps after the Bank of England held interest rates”. However, it continued to offer products with LTVs of 85% and above for first-time buyers.

Following the BoE’s decision last week, Alice Haine, personal finance analyst at online investment platform at Bestinvest by Evelyn Partners, said: Thanks to five interest rate cuts since last summer, and a more relaxed lending environment, mortgage affordability has improved for some.

However, she said that no movement on the headline interest rate this time round, “coupled with uncertainty around when the next reduction may be, is likely to be unsettling for mortgaged homeowners and prospective buyers.”

She said that the cohort of borrowers most likely to be dismayed by the latest BoE decision are “homeowners with large mortgages still cruising on ultra-low fixed rates. Many five-year deals, secured before interest rates began their rapid ascent in late 2021, are now expiring so household budgets may need an overhaul to accommodate the upcoming jump in repayments.”

Anyone coming off an old deal would be wise to lock in a new product rapidly rather than wait for borrowing conditions to ease further, said Haine.

She added: Mortgage rates have fluctuated in recent weeks amid uncertainty around the future path of interest rate cuts. That volatility may continue, particularly in the run-up to the budget, as policymakers will be keen to assess the impact of any new tax measures the chancellor will roll out.