Three leading mortgage lenders have increased their rates this weekdespite the efforts made by Bank of England to reduce borrowing costs.

Santander, HSBC and TSB raised rates by up to 0.3 percentage points. The moves come as mortgage lenders have had a rush through customs, according to brokers. They raised rates to ease demand even after the Bank of England cut borrowing costs by 0.25 percentage points last week.

Number of home buyer approvals are up to a new two-year high in September of 65,600 loans being approved – 700 more than in August, according to the Bank of England.

Nick Mendes, mortgage technical director at Broker John Charcol, said: “While many lenders have opted to maintain their existing rates to maintain business volumes and service standards, those offering competitive rates have been forced to it probably adjusts due to app levels.

“These influxes often stretch service levels, prompting rapid rate changes to effectively manage demand.

Mr Mendes said striking a deal now was a good idea; if rates drop, you can renegotiate. If it goes up, you can stay with your business.

“For customers approaching the end of their fixed rate terms, it is essential not to delay in the hope that rates will return to the levels seen weeks ago. Securing a deal now provides certainty in an uncertain market. There is always the option to review and adjust if circumstances change, but prompt action reduces exposure to further rate increases.”

The moves now make Barclays among the best offers, with a two-year fixed offer of 4.11% for those with a 25% deposit.

With a 40 per cent deposit, NatWest offers 3.96 per cent. Locking in for five years means rates as low as 3.84% for a large deposit or 3.89% for 25%, both with NatWest.

The recent general trend for mortgage rates it was down from highs experienced two years ago in the wake of former Prime Minister Liz Truss’ horror mini-budget.

But a number of cheap products have been pulled from the market in recent weeks. Santander has withdrawn a 3.68% five-year fixed rate product for borrowers with a 40% deposit on their homes.

The Budget also announced more expensive borrowing in commercial markets as traders bet the extra spending would have an inflationary impact on the UK. This has an effect on mortgage rates.

This effect can be seen in the yields offered on UK government debt. A day before the budget, 10-year gilts were yielding 4.32%, compared with 4.42% today. This increases the cost of borrowing for most.