Major mortgage providers are raising interest rates for the second time this week, after major rivals also increased interest rates

Santander has announced it will increase mortgage rates for the second time this week, as lenders continue to increase interest rates on their home loans.

From tomorrow, the bank will increase a number of its fixed interest rate agreements aimed at home buyers and people refinancing their mortgage by up to 26 basis points.

Homeowners have until the end of today to secure Santander’s five-year 4.4 percent fixed rate deal, aimed at people remortgaging with at least 40 percent equity.

It is currently the second-lowest five-year fixed rate on the market, but could rise by up to 26 basis points from tomorrow.

Anyone buying with a 25 per cent deposit could also be affected by Santander’s rate changes.

The lowest two-year commitment of 75 per cent of the loan to value currently charges 4.83 per cent with a £999 fee, making it one of the best deals on the market. That could all change starting tomorrow.

In addition to mortgages for homeowners, Santander is also increasing interest rates on its buy-to-let fixes by up to 22 basis points.

Last week, more than 20 lenders increased rates, including TSB, Halifax, HSBC and Barclays.

More were added this week. NatWest and Nationwide increased mortgage rates on Monday and Tuesday, and Santander also raised some of its rates at the time.

Mortgage brokers were active today worrying about rising interest rates after two weeks of continued rate hikes.

Ranald Mitchell, director of Charwin Private Clients, told news agency Newspage: ‘Santander raising interest rates for the second time in a week is a good barometer of market sentiment and mortgage borrowers will be in serious trouble if this trend continues. ‘

Stephen Perkins, managing director of Yellow Brick Mortgages, added: ‘The current market feels like a chaotic game of ‘pass the parcel’, with lenders scrambling to avoid charging the lowest interest rates when the music stops.

‘With rates increasing multiple times within the same week, advising clients becomes a real challenge in this ever-changing landscape.’

Many hope that the Bank of England will cut the base rate at its meeting next week, on May 9.

Gary Bush, financial advisor at MortgageShop, said: ‘It is becoming very difficult to talk to customers about mortgages after this week’s seemingly endless rate rises.

‘All we can hope or pray for is that the Bank of England will bail out UK mortgage account holders with a base rate cut at the upcoming monetary policy meeting, as the mood on mortgage rates is turning very sour.’

However, a reduction in the base interest rate seems unlikely at this time.

Inflation stands at 3.2 percent in March, remaining above the central bank’s target of 2 percent.

Financial markets are also now predicting only two or three base rate cuts this year, the first of which could happen in August, although there are still some who think this could happen in June.