More lenders have pushed up their mortgage rates ahead of the Bank of England's interest rate decision on Thursday. Santander followed hot on the heels of the Halifax in announcing it is increasing ratesIt is widely expected to hold interest rates at 3.75 per cent. Higher interest rates increase the cost of borrowing for households and incentivise saving. The average two-year fixed rate today is 5.62 per cent according to rates scrutineer Moneyfacts, while the average five-year rate is 5.64 per cent. 'Markets and lenders are increasingly nervous about inflation and that is now starting to really hit borrowers here in the UK with higher mortgage rates.'