Foundation and Family Building Society have both temporarily withdrawn their products due to the current market instability.
Foundation has withdrawn all products, saying: “This is not a decision we have taken lightly.”
The lender says: “It is a necessary step to ensure that we can continue to do what is most important: making mortgages.”
“We are closely monitoring the market and will bring back our products as soon as conditions allow.”
Today the products will be removed at 5:30 PM.
Meanwhile, Family Building Society yesterday discontinued all its fixed rate mortgage products with immediate effect.
The product withdrawals apply to both new and existing customers and are no longer available for purchases, remortgages, further advances or product change requests.
The range of discounted variable rate mortgage products remains unchanged.
Family Building Society says: “We plan to launch a new range of fixed mortgage products as soon as this is operationally possible. We will let you know as they become available.”
Elsewhere, Kensington will revise prices for its entire residential and buy-to-let (BTL) product range by the end of business tomorrow.
New products will be available from March 26.
Yesterday saw lenders rush to withdraw products or raise prices amid soaring swap rates, pushing average rates higher.
The availability of mortgages has shrunk by a fifth Since the conflict began, 1,500 deals have been withdrawn by lenders.
This is evident from data from Moneyfacts the average rate for all types of products is now at the highest level since August 2024.
Today, the average mortgage rate has risen 59 basis points since the war broke out, from 4.89% at the end of February to 5.48% this morning, rising 14 basis points on the last day alone.
The average two-year fix is now 5.51% and the average five-year fix is now 4.95%, the latest data from the comparison site shows.
Commenting on yesterday’s moves, Nick Mendes, technical manager at mortgage adviser John Charcol, said: “The latest SONIA swap rates have fallen from earlier today, with the two-year cash rate now at 4.178%, three-year at 4.137% and five-year at 4.121%. This is important for mortgages, as lenders discount fixed rates at future financing costs, not just current bank rates.”
“A number are still in flux today, with Family Building Society withdrawing all fixed rates, Fleet temporarily withdrawing its fixed rate range including product transfers, Nationwide increasing selected fixed and tracker rates from tomorrow, and Accord making further increases across residential, product transfer, additional lending and buy-to-let ranges.”
“That’s really the point for borrowers. Mortgage pricing moves in real time and isn’t simply waiting for the next decision from the Bank of England. Markets may have calmed down somewhat during the day, but lenders are still dealing with a more volatile funding environment and that continues to feed into current pricing.”