Mortgage Rates Skyrocket: Average Two-Year Fixed-Rate Deal Now £35 More Expensive

This is due to recent data showing inflation not coming down as quickly as expected, leading financial data firm Moneyfacts to predict the Bank of England will raise rates higher than previously thought, from 4.5% to 5.5%.

Several lenders have already raised their mortgage rates and removed deals from the market, and this trend is expected to continue.

The Bank of England has been steadily raising interest rates to tackle soaring prices, but those on fixed-rate deals have been shielded from the increases until their deals expire.

This has resulted in a "remortgage nightmare" for many people as they face a large increase in monthly payments when their fixed-rate deal ends.

The UK's house prices have fallen at their fastest annual pace in nearly 14 years in May, according to the latest data from a building society.

They also predicted that "headwinds to the housing market are set to strengthen in the near term." While a drop in house prices is generally good news for first-time buyers who have seen property values rise in recent years, rising interest rates have made mortgage costs higher than many people planning to buy a home had anticipated.