Mortgage borrowers are facing rising costs as major lenders increase rates and withdraw top deals, even after the Bank of England recently cut its base rate.

and are the latest high street lenders to raise their fixed mortgage rates, following similar moves by Santander, HSBC, and TSB earlier in the week, with hikes of up to 0.3% across fixed-rate deals.

Nationwide has also discontinued its sub-4% mortgage deals, implementing its own round of rate increases, while Virgin Money raised interest rates by up to 0.25% across its Purchase, Remortgage, Buy-to-Let, and Product Transfer options.

This changes come despite the Bank of England announcing a Base Rate cut to 4.75% this month in response to sustained lower inflation rates.

Brokers have said the mortgage rate increases are likely due to the "rising cost of funding" following the Labour Budget.

Gilt yields, which are the interest rates paid on British Government bonds, spiked after Rachel Reeves's speech, signalling "underlying uncertainty" from investors. Gilt yields affect swap rates, which are predictions of future interest rates. Swap rates typically move in tandem with gilt yields.

Higher swap rates drive up the costs for lenders, which means mortgage rates increase, impacting borrowers with both new and variable-rate mortgages.

Jack Tutton, Director at commented: "Yet more misery for mortgage holders as a result of the autumn Budget. The cost of borrowing for mortgage lenders has increased significantly following the Budget.

"This is due to the fear that inflation will start climbing again after the chancellor's new policies. As a result, it is unsurprising that HSBC, Virgin and now Nationwide are increasing their rates after a number of other lenders made the same decision last week."

David Hollingworth, associate director at said: "The slew of rate changes in recent weeks has continued to push rates higher, reflecting the higher costs for lenders, as the market outlook for rates has edged toward a 'higher for longer' expectation.

"A number of lenders managed to hold fixed rates below 4%, until now. As sharper rates have fallen away an air of inevitability was building and now all major UK lenders' fixed rates have once again edged back above 4%."

However, Mr Hollingworth reassured: "Unwelcome as it is for borrowers, it's important to note that there's no sign of rates skyrocketing as they have in recent years.

"The Bank of England Base Rate is still expected to fall over time, but markets are questioning if the pace will be as rapid.

"Forecasting and perception changes frequently but for now borrowers should grab a rate whilst they can, to avoid missing out if the deal is subsequently withdrawn."