Yesterday Cheltenham & Gloucester withdrew all of their products from the marketplace. Today it was announced that they have repriced their entire range.

It's fixed rates will increase by at least 0.25%- despite the Bank of England's recent rate cut to 5%- as will C&G's tracker rates. For example, Cheltenham & Gloucester's three-year fixed rate with £995 fee (currently 5.85%) will rise to 6.14%, a rise of 29%.

A statement from Cheltenham & Gloucester read “From Tuesday 20 May we will be making some changes to our mortgage range. Over the last few days the cost of funds has increased sharply and as a result it is now necessary to reflect this in our rates. By making these changes we are looking to maintain our competitive position within the market with those competitors who have moved following the increase in funding and those that are likely to move over the coming days"

It is unclear to which lender the statement was referring. Halifax have recently reduced their rates: likely candidates include Abbey, Alliance & Leicester and Bradford & Bingley.