Santander has withdrawn new mortgage deals as it reassesses the market ahead of more expected interest rate increases by the Bank of England.

The lender said it would remove all rates for new borrowers at 7.30pm tonight, with a refreshed range to be launched on Wednesday.

It comes as the Bank of England is forecast to raise interest rates to 5.5pc by the end of the year, as policymakers battle to bring down persistent inflation.

Jonathan Haskel, a member of the Monetary Policy Committee that decides rates, said on Monday that further increases cannot be ruled out because prices are still rising faster than the Bank’s 2pc target.