Halifax under fire over new changes

"These increases show that the markets do not have renewed confidence following last week's Budget. It's not been the best of starts to the week for borrowers." Dariusz Karpowicz, Director at Albion Financial Advice, said: "The news today is a mixed bag for mortgage hopefuls.

"Santander and NatWest's rate hikes are certainly a setback, especially after the recent optimism around falling swap rates. However, those swap rates, which reflect lenders' borrowing costs, have been dropping in the 5-year market, leading some brokers to believe mortgage rates may actually fall in the coming weeks.