A flurry of rates rises this week has driven the cost of borrowing to buy a house further beyond the reach of borrowers in the UK, reports said.

This is as a result of the decision by at least 14 mortgage lenders, including the Halifax, RBS and Birmingham amongst others, to increase the cost of the various fixed-rate deals in the past couple of days.

And now the average cost of a two-year deal for a 90 per cent loan had risen to 6.75 per cent, said mortgage brokers Chase de Vere.

“Things have not been this busy with the withdrawal of deals for a month or so,” Aaron Strutt of Chase de Vere said.

Figures released by the Council of Mortgage Lenders (CML) yesterday revealed that fixed-rate deals had become more popular than a couple of months ago.

They accounted for 59 per cent of all new loans in April, the highest level seen this year.

The rising price of fixed-rate home loans since then has been driven by the increasing cost of borrowing the funds on the financial markets, according to reports.

The CML recently warned lenders to protect themselves in case house prices fell further. And some lenders have, against this backdrop, been putting up the cost of mortgages for borrowers who are unable to provide large deposits.

But those wanting to borrow 75 per cent or less of the value of their property, and who are considered a lower risk to lenders have, sometimes, had the cost of new loans reduced for them.

Meanwhile, Abbey increased the cost of its remaining 95 per cent mortgage Wednesday, which is available for five years at 7.04 per cent. And an arrangement fee of £2,499 is required to be paid up-front and not added to the size of the loan.