Lenders have been pulling their sub-1% mortgage deals over the past week.

Last Monday, October 25, there were 82 sub-1% mortgages available with rates ranging from 0.84% to 0.99%, but now there are only 22, according to data from Defaqto.

The Bank of England is expected to raise the base rate on Thursday and lenders have been raising rates ahead of this.

Products at 95% LTV have seen substantial increases, from an average of 2.45% to 2.69% now – equivalent to an extra £24 on the cost of a £200,000 repayment mortgage.

Last week, the best rate at 80% LTV was 1.24% for a two-year fixed, but this has jumped by almost a quarter to 1.64% today.

Two-year fixed rates have generally seen the biggest increases, but the best rate for a 70% LTV five-year fix has risen from 1.04% to 1.19% and at 60% LTV the best five-year fix has jumped from 0.99% to 1.09%.

Defaqto consumer banking expert Katie Brain says: “We have enjoyed record low interest rates for a long-time and they had to start going back up at some point. 

“For anyone who needs a mortgage, there is never a good time for this. However, interest rates are still very low compared to previous years and there are still some great deals to be had.

“Sometimes any savings on the headline interest rate can be wiped out by expensive fees and you need to know what the cost is over the whole period you are tied in for. 

“It is always worth getting independent advice from a professional who can advise you on the right product for your needs.”