The Bank of England raising the interest rate to 0.25% has led to lenders increasing both their tracker rates and fixed rates, shows data from Moneyfacts.

The average rate for a two-year fix at all LTVs went from 2.34% in December last year to 2.38% this month, and the average rate for a five-year fix increased by 2 basis points, to 2.66% across the same time frame.

This is the third month in a row that these two rates have increased.

More significantly, the average rate for a two-year tracker shot up from 1.58% to 1.75% on a monthly basis and the average term tracker rate moved from 3.38% to 3.53%.

Meanwhile, the average standard variable rate ticked up by 1 basis point only, to 4.41%.

However, at 95% LTV, the average two-year fixed rate fell by 3 basis points from December 2021 to January 2022, to 3.06%, and the average five-year fix dropped too, from 3.39% to 3.33%.

Total product choice, the data adds, which stood at 5,315 at the end of last year, now numbers 5,394 – “levels not seen in 13 years,” according to Moneyfacts finance expert Eleanor Williams says.

She continues: “Borrowers with a 5% deposit or equity may be very pleased to note… the average two- and five-year fixed rates have fallen even further to reach another record low this month.

“In fact, the average two-year rate at 95% LTV is currently 1.38% less than the 4.44% that borrowers searching for an equivalent deal this time last year would have faced.

“Supporting recent analysis from Yorkshire Building Society, which noted that the number of first-time buyers had reached a 20-year high, our data illustrates that there are 339 more products on offer at 95% LTV than were available in January 2021.

“Following the end of the Stamp Duty holiday, it may be that this is a sector in which lenders are keen to continue competing for business, supported by the mortgage guarantee scheme which is set to run until the end of this year, and regardless of changes to base rate.”