It looks as if the significant falls in lenders’ interest rates – seen in recent weeks – has come to an abrupt halt.

Swap rates, which influence the price of fixed-rate mortgage deals, have been rising in recent days. Five-year swap rates have hit 3.79%, up from 3.49% a month ago, as mixed economic data for the UK and concerns over the contents of this month’s Budget have spooked markets.

Santander – until now at the forefront of mortgage interest rate cuts over recent weeks – has pulled its best-in-class five year fixed rate deals.

It offered the lowest interest rate for a five year fixed deal on a 60% loan-to-value mortgage at 3.68% and its products were amongst the cheapest rates for an equivalent 90% LTV mortgage at 4.49%. 

It plans to relaunch some products at higher rates tomorrow.

And in recent days the Coventry Building Society, the Co-operative Bank for Intermediaries and specialist lenders such as Aldermore and Keystone have pulled and/or replaced some lower priced deals.

On Friday, the average two-year fixed mortgage rate was 5.36%, according to financial information company Moneyfacts. A five-year deal was 5.05%.

Charlie Nunn, chief executive of Lloyds Banking Group, recognised some rates were rising at the moment but felt that was not a long term trend. He told the BBC over the weekend: “We do think they [mortgage rates] are going to continue to come down, but getting back to the level we saw in the last decade where interest rates were down at zero I think is unlikely.”

Nunn said the increase in borrowing costs had been “really challenging” for homeowners, but pointed out only about 40% of UK properties have a mortgage.