Proactive Investors - Santander UK (BME:SAN) has announced it is hiking fixed mortgage rates for the second time in less than a week.
Adding to the host of lenders nudging up fixed deals this week, including Nationwide and NatWest (LON:NWG), the Spanish bank is increasing rates by up to 0.26%.
On Monday Santander unveiled a suite of rate increases for both fixed and tracker products by up to 0.25%.
Today's new changes will not be implemented until the close of business on Friday.
Lenders have been moving rates back up after previous cuts, as hopes of a summer Bank of England interest rate cut have dimmed.
The bank's monetary policy committee will announce its next interest rate decision next Thursday, 9 May, but expectations are low.
Financial markets now see the first BoE cut coming in September, with the chances of a second cut this year only around 50-50, down from the projected six moves this year that had been priced in at the start of the year.
"The current market feels like a chaotic game of pass the parcel, where lenders are scrambling to avoid holding the lowest rate when the music stops," said Stephen Perkins, managing director at Yellow Brick Mortgages.
Dariusz Karpowicz, director at Albion Financial Advice, said the second rate hike from Santander in a week "reflects the broader market's reaction to rising swap rates.
"As we approach summer, this trend hints at a looming tightening of lending, presenting hurdles for borrowers."
Katy Eatenton, mortgage specialist at Lifetime Wealth Management, said it was "frustrating that Santander's pricing wasn't accurate on Monday".
She said it "seems unlikely that rate reductions will be coming anytime soon".