The firm analysed data published by the Bank of England to look at the average interest rates charged on two-year fixed rates across a range of LTVs.

It noted that since the start of June the average rate on a 90% LTV two-year fixed rate mortgage has risen from 2.19% to 3.55%, while on 85% LTV deals it has grown from 1.84% to 2.97%.

However, Knight Frank noted that these increases are now being seen in a more pronounced way even for borrowers looking to buy with larger deposits. For example over the same time period the average rate on a 75% LTV product has risen from 1.41% to 1.85%, while typical rates on 60% LTV deals have jumped to 1.47% from 1.3%.

Hina Bhudia, partner at Knight Frank Finance, said that the upward march of average mortgage rates was a “worrying trend” for homeowners and buyers everywhere, and cautioned that lenders were continuing to hike rates in order to avoid being the cheapest on the high street in the middle of the busiest mortgage market seen since October 2007.

She added that lenders had been “swamped” with new business as they grappled with the effects of the pandemic, which had included the closure of a host of international call centres as a result of lockdowns introduced by governments across the world.

Bhudia continued: “The property market will remain open during lockdown and is likely to remain busy as a result. That means rates are likely to continue to climb over the short term, so borrowers should seek to secure a competitive rate as soon as possible. Mortgage offers are generally valid for up to six months, so you can revisit if the situation changes.”