These rises followed a warning from the Office for Budget Responsibility that mortgage repayments would increase by 15pc year-on-year by the middle of 2023. The Bank of England could raise interest rates as early as next week to combat rising inflation. Most variable-rate mortgage rates will climb as a result. Higher rates will mean borrowers have to pay hundreds of pounds more in interest. Fixed-rate mortgage borrowers will be protected from any rate rise until their term ends. However, banks have begun to raise the cost of these deals for new borrowers and remortgage customers. Brokers have urged homeowners to fix it now. Mortgage interest payments are forecast to grow 15pc by 2023 For example, the bank increased its two-year fix for borrowers with a 40pc deposit to 1.52pc from 1.17pc. On a £200,000 mortgage taken over 25 years, this would increase monthly repayments by £33 a month to £802. This would cost a homeowner an extra £396 a year. NatWest has also increased rates by 0.1 percentage point on a range of two and five year fixed-rate deals. HSBC also pushed up the cost of its fixed-rate deals, and TSB said it plans to do so from tomorrow. Borrowers urged to fix Mortgage brokers have urged borrowers to lock in a low rate while they last. The number of sub-1pc mortgages has fallen by more than a third since the beginning of the month and experts have predicted they will have disappeared entirely by December. Rates could rise significantly in the coming years. The average mortgage rate currently sits at 2pc, according to the OBR, but is forecast to have increased to 2.2pc by the end of next year and 2.4pc towards the end of 2023. Robert Payne, of Langley House Mortgages, a broker, said rates were unlikely to remain low for long. “I would be surprised if every lender did not introduce some sort of rate rise before the end of the year and logically borrowers are trying to take advantage of what's available before they do,” he said. Earlier this week Nationwide also increased the rates on some of its two, three and five-year fixes by up to 0.07pc, Mr Payne said. Aaron Strutt, of Trinity Financial, another broker, said: “We have not had as many rate changes since the lockdown hit and some of the biggest lenders pulled out of the market. We are getting lots of calls from borrowers who are frustrated they did not secure one of the sub-1pc fixes.”