Santander, HSBC and TSB increase mortgage rates after applications rush in spite of Bank of England cut

Rental prices have increased by 61% in the last decade, meaning more people are looking to buy (Rebekah Downes/PA) - (PA Wire)

Three top mortgage lenders hiked their rates this week, despite efforts by the Bank of England to cut 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 in custom, according to brokers. They have upped their rates to ease demand even after the Bank of England last week cut borrowing costs by 0.25 percentage points.