Mortgage borrowers will be relieved to know their rates are likely to continue to drop despite some lenders recently moving up their rates.

A rise in inflation month-on-month for the year to December caused some lenders to increase their rates, with Santander upping rates by 0.2 percentage points.

But the downward trend is likely to continue, according to market experts at Hargreaves Lansdown. Sarah Coles, head of personal finance, said: “If you have a remortgage looming, or you’re planning to buy, and this has struck fear into your heart, then the good news is that this isn’t expected to be enormously widespread, and the general direction of travel for rates in the coming months is still likely to be downwards.

“The Santander announcement came sandwiched between cuts from Barclays and Nationwide, so it’s the exception to the rule right now.”

Mortgage rates have dropped largely from the recent peak for average two-year rates, at 6.85 percent at the start of August 2023. These rates are now down to 5.58 percent.

But Ms Coles warned even with the declining rates, those who are remortgaging will face a “painful” spike in their repayments.

She spoke about the options homeowners have, explaining: “You can opt for a tracker rate, which will drop when the Bank of England cuts rates, but there are no guarantees over when or how far rates will fall.

“If certainty is your priority, you can lock in a fixed rate deal now – up to six months before the remortgage is due. If rates fall from here, you can ditch the deal and shop around.

“However, if there are any nasty surprises that push rates up again, you’ve secured a fixed rate bargain.”

She also encouraged anyone who is struggling to find the funds for their repayments to reach out for help.

She said: “If you’re struggling with affordability, it’s worth talking to your lender, who’ll have more options at their disposal – including moving to interest-only for a period, extending the length of the loan or even taking a payment holiday.

“Some of these will have an impact on your credit record, but will do far less damage than missing payments.”

The Bank of England held the base rate at 5.25 percent in its latest decision with some analysts predicting it will keep rates at this level in its next decision.

Rohit Kohli, director at The Mortgage Stop, said previously: “We are going to see some ups and downs over the coming months from lenders so these kinds of minor setbacks are inevitable.

“Inflation rose unexpectedly, if only marginally last week, giving lenders pause for thought but a day or two later the retail sales data for December was published and was dreadful, which will highlight the fragility of the economy to the Bank of England.

“The one positive to take out of it all is that lenders are fighting to lend money after a poor 2023 but how long it lasts is anyone’s guess.”

For the latest personal finance news, follow us on Twitter at @ExpressMoney_.