Barclays PLC (LSE:BARC) has become the first big lender to hike mortgage rates after inflation rose more than expected in March.
Two and five-year mortgage rates have been increased, Barclays announced on Friday, as it unveiled sweeping product changes, which included some cuts.
The lender started charging 4.98% on a 75% long-to-value two-year fixed mortgage from Friday under the move, while five-year deals now include rates of up to 4.8%
This comes after inflation figures on Wednesday showed consumer prices increased by 3.2% in March, against 3.4% in February but above market expectations for 3.1%.
Hopes for interest rate cuts by the Bank of England in the coming months took a blow as a result, with markets left fully pricing in just one reduction this year.
Average mortgage rates across the UK sat at 5.81% for two-year fixed deals and 5.39% on five-year fixes, according to Moneyfacts.