Borrowers coming to the end of fixed-rate mortgages could be better off staying with their existing lender rather than locking into another short-term deal, as rates and fees for new customers have risen so sharply.

The base rate was cut by a quarter-point this week to 5 per cent but new mortgage customers are unlikely to see much benefit. While a number of the biggest banks – Halifax, Nationwide and Woolwich – passed on the rate cut to existing borrowers, some simultaneously increased the cost of new fixed and tracker mortgages.