A surprise boom in retail spending in May might prompt the Bank of England to raise interest rates earlier than expected.
The cost of an average two-year fixed rate mortgage has increased by over 60 basis points in the last three months, according to Legal & General.
The Bank of England's Monetary Policy Committee (MPC) voted strongly in favour of keeping interest rates at 5% earlier this month, according to minutes from the meeting.
The Government's official measure of inflation hit 3.3% in May, well above the 2% target set by the Treasury.
Eurozone inflation has climbed to a record level as food and fuel costs continue to soar.
Nationwide Building Society has announced it will raise mortgage rates on a number of fixed-rate and tracker mortgage products from tomorrow.
Inflation has risen sharply in the US due to rising fuel costs, and may prompt the Federal Reserve to raise interest rates.
The Bank of England may raise interest rates next month as a survey showed a lack of public confidence in its ability to control inflation.
Bradford & Bingley has raised its mortgage rates by as much as 0.55% for new borrowers.
Interest rates are expected to remain at 5%, according to analysts, as the Monetary Policy Committee (MPC) prepares to announce its latest decision.