Karen Noye, of advice firm Quilter, said affordable mortgage had become “increasingly hard to find”. This would only continue as Britain grappled with the economic consequences of war in Europe and higher energy costs pushed up inflation.

“Given the heightened state of uncertainty we are living in, it is unsurprising that lenders have pulled deals at such a fast rate,” she said.

Ms Noye warned borrowers about to buy a home or remortgage would “feel the squeeze of increased costs” as the shrinking market became more expensive. 

The vast majority of mortgages have gone up in price in the past month amid banks reluctance to compete and sell loans. Lenders have also braced for more interest rate rises by the Bank of England.

The average two-year fixed loan was 0.21 percentage points more expensive, charging 2.65pc, the highest since November 2015, Moneyfacts said. A five-year deal now carried 2.88pc interest, some 0.17 percentage points more expensive than a month ago.

Eleanor Williams, of Moneyfacts, said banks would “tighten their belts even further” amid the cost of living crisis and volatile economy. 

Next week, the Bank of England is expected to increase its rate for the third consecutive meeting, in a bid to curb soaring inflation. New mortgage deals are now hundreds of pounds more expensive than before Christmas, with borrowers on variable or tracker rate hardest hit.

Homeowners have faced higher-than-expected increases in charges as well. The average two-year tracker rate is now priced at 2.03pc – 0.45 percentage points more expensive than in December. This is more than the 0.4 percentage point increase in the Bank Rate over the same period.