Two more lenders hike mortgage rates ahead of Bank of England interest rate decision on Thursday

By ED MAGNUS, SENIOR THIS IS MONEY REPORTER More lenders have pushed up their mortgage rates ahead of the Bank of England's interest rate decision on Thursday. Santander and Halifax have both hiked prices across their fixed rate deals. A significant number of Santander's mortgages are being increased by 0.15 percentage points but some are being priced up by 0.19 percentage points.  Halifax has also upped rates. Rates for home movers and first-time buyers have risen by 0.15 percentage points while its remortgage deals are up 0.2 percentage points. Renewed tension between the US and Iran has led to fears of higher inflation, which has prompted lenders to raise prices.  The Bank of England will decide whether to increase the base rate on Thursday, in a move that could influence how banks price their mortgages.  Santander followed hot on the heels of the Halifax in announcing it is increasing rates It is widely expected to hold interest rates at 3.75 per cent.  It has maintained this stance throughout the year amid fears that inflation could spike thanks to the pressure on oil and gas prices arising from the Middle East conflict. Higher interest rates increase the cost of borrowing for households and incentivise saving. This usually reduces spending and keeps inflation down. Sonia swap rates, the inter-bank lending rate on which banks base the price of their fixed mortgages, remain above 4 per cent. Five-year swaps hit 4.23 per cent yesterday, up from 3.97 per cent a month ago.  The average two-year fixed rate today is 5.62 per cent according to rates scrutineer Moneyfacts, while the average five-year rate is 5.64 per cent.  The cheapest rates, available to those with the largest deposits and good credit ratings, are around 4.5 per cent.    Just two weeks ago, the cheapest two-year fix for a home buyer was 4.19 per cent and the lowest five-year fix was 4.31 per cent. Anthony McQuilliam, director at Essex-based Bolt Mortgages, said: 'The two biggest high street lenders repricing on the same day tells borrowers everything they need to know about where the market is heading in the short term. 'If a mortgage renewal or purchase is on the horizon in the next six months, a conversation with a broker needs to happen today, not next week.' Emma Jones of specialist broker When the Bank Says No, suggests that rates are unlikely to see a sustained fall until the conflict in the Middle East ends. 'Amid ongoing tensions in the Middle East, the price of oil has been on the rise again and that risks feeding inflation, which could see interest rates rise or at least stay higher for longer,' she said.  'Markets and lenders are increasingly nervous about inflation and that is now starting to really hit borrowers here in the UK with higher mortgage rates.' Mortgage rates have shot up again due to inflation triggered by the conflict with Iran reversing hopes that the Bank of England would cut rates. This means those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord. This is Money's partner L&C can help you with its fee-free mortgage service. > Find the right mortgage for you  To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you’re ready to find your next mortgage, why not use This is Money and L&C’s online Mortgage Finder. It will search 1,000’s of deals from more than 90 different lenders to discover the best deal for you. > Find your best mortgage deal with This is Money and L&C  Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.  How much tax would you have to pay on a home or buy-to-let?