TSB is making further rate increases on Tuesday, this time of up to 35 basis points on product transfer deals.

The lender has made several price hikes to various products already this week.

TSB previously raised fixed rates by 45bps.

The latest hike from TSB follows analysis from Moneyfacts earlier today showing average two-year fixed rates have risen to 5.75%, up by 92 basis points since the outbreak of war and by 40 bps this week alone.

More than 50 lenders have put their prices up this week

Chancellor Rachel Reeves met with the biggest six lenders and agreed that they would write to the 1.6 million borrowers who are set to come off fixed rate deals this year.

Borrowers reaching the end of five-year fixes this month face a payment shock of £4,655 a year if they secure an equivalent deal.

Those who revert onto their lender’s standard variable rate face an even bigger jump in costs as the average SVR is 7.13%