As lenders sweeten the deals for savers, borrowers are being punished with higher rates and tougher lending criteria.

Official interest rates fell 0.25 percentage points this month, but Halifax, the biggest lender, has robbed new borrowers of much of the benefit by raising its tracker rates last week by up to 0.20 percentage points.

A first-time buyer taking out a Halifax tracker will now pay 5.64% instead of 5.44% while a remortgage borrower will now pay 5.44%, against 5.24%.

Cheltenham & Gloucester will tomorrow raise the rates on some of its trackers by up to 0.20 points while Bank of Scotland last week raised the margin on its two-year tracker by 0.15 points.

Can I still get a good tracker?

Yes, but you will have to have a decent deposit – or a enough equity in your property if you’re remortgaging.

Saffron building society has a three-year tracker at 5.19% on a maximum loan of 85% of the value of the property with a £699 fee.

The Coop is offering the best two-year tracker at 0.01% below Bank rate for two years, or 5.24%, with a £999 fee on loans up to 90% of the value of the property.

I’m tied in to an existing deal. What’s happening?

While Halifax, Nationwide and Abbey cut their standard variable rates (SVRs) by the full percentage point, there was bad news last week from smaller lenders Britannia, Darlington and Manchester building societies, which chose not to pass on the Bank of England’s full rate cut to some borrowers on variable-rate deals.

Britannia cut its SVR by just 0.15 points to 7.05% while Darlington cut its SVR by 0.2% to 7.37%. Manchester, which did not pass on the December rate cut, has reduced its SVR by 0.20 percentage points to 7.59%.

Britannia’s stingey cut will cost a borrower on a £200,000 mortgage linked to its SVR £200 a year more than if the lender had reduced its rates by the full 0.25 points.

Melanie Bien of Savills Private Finance, a broker, said: “Now more than ever borrowers should avoid deals pegged to their lender’s SVR.

“That’s why trackers are usually recommended over discounts, although they too have their problems.”

And what about fixes?

They are looking good value, especially after the Bank of England warned last week that interest rates may not come down as much as the market expects.

First Direct has a fix available at 4.75% with a £1,498, fee but you must have a deposit of at least 20%.