After a quiet start to the week many major banks increased mortgage rates and that has more than offset any cuts by other lenders.

As a result, both the average two- and five-year fixed rates rose by 0.01% for the second consecutive week, now at 4.98% and 5.02% respectively.

The Moneyfacts Average Mortgage Rate also increased from 5.01% to 5.02%.

As head of news at Moneyfactscompare.co.uk Adam French points out, the prominent brands to increase selected fixed rates this week included Barclays by up to 0.10%, Santander by up to 0.13%, HSBC by up to 0.20%, plus Lloyds Bank and Halifax by up to 0.15%. On the flipside, TSB reduced rates by up to 0.05%.

Several building societies cut selected fixed rates, including Nottingham Building Society by up to 0.10%, Progressive Building Society by up to 0.14%, Skipton Building Society by up to 0.15% and Newbury Building Society by up to 0.15%.

West Brom BS made a small cut to its three-year deal at 95% loan-to-value of 0.05% and is now priced at 4.93%. The deal comes with a free valuation and no fee.

Not to go unnoticed, Gen H made selected cuts of up to 0.10% and Aldermore made selected cuts of up to 0.20%.

Commenting on the weeks just gone French said: “While there have been a handful of notable reductions this week, several major lenders increased mortgage rates following gloomier forecasts on the future of interest rates and the economy.”

He suggested this would be unwelcome news for the more than 350,000 households who  locked into a low-interest fixed-rate mortgage five years ago when rates were at record lows and are now likely to see their costs jump this winter as they reach the end of their deals.

He added “There is better news for first time buyers and borrowers with smaller deposits or limited equity of just 5% or 10%, who will find the choice of higher loan-to-value (LTV) deals has risen to its highest point in 17 years.”