The average cost of a new fixed-rate mortgage is continuing to creep up, data shows, as brokers warn that borrowers could face “further pain” if the latest data out this week shows inflation has risen back above the Bank of England’s 2% target.

The average new two-year fixed-rate has also crept up and now stands at 5.51%.

If headline CPI comes in higher than expected, there’s every chance rates will continue to edge up.”

Similarly, Craig Fish, the director of the broker Lodestone Mortgages and Protection, said that with inflation predicted to rise above 2%, there was every chance more lenders would continue to adjust their rates upwards this week.