Clydesdale Bank is withdrawing all flat rates for new customers tonight as new data shows 1,500 deals have been completed since the start of the war.
Buy-to-let lender Rely is also withdrawing all products tonight, but says it will launch new deals again tomorrow.
Coventry withdrew all new fixed rate offers for customers yesterday and has yet to replace them, while Fleet will withdraw all fixed rate products at 5pm today.
Meanwhile, Halifax, BM Solutions, Nationwide, TSB, Pepper and Gen H are the latest lenders to announce price increases.
New data from Moneyfacts shows that the number of products on the market has shrunk by 1,492 products since March 9.
The comparison site also shows that the average two-year interest rate has risen from 4.83% in early March to 5.43% today, the highest level since February 2025.
The average five-year interest rate has risen from 4.95% at the beginning of March to 5.45% now, the highest level since July 2024.
Adam French, head of consumer finance at Moneyfacts, said: “Hundreds of mortgage products have been withdrawn and interest rates continue to rise as lenders scramble to keep pace with rising borrowing costs.
“Even the very cheapest deals have changed significantly, with the lowest rate available to borrowers in the UK now standing at 4.01%, compared to 3.51% before the conflict with Iran began.
“Hundreds of mortgage products have been withdrawn since the base rate decision last week, bringing the total reduction to almost 1,500 deals since the conflict in Iran began – around a fifth of the market.
“The combination of rising interest rates and declining options is a direct response to the conflict in the Middle East, which has dramatically shifted expectations around inflation and interest rates.
“Many deals are likely to come back onto the market in the coming days and weeks, but at higher rates.
“While a faster resolution to the conflict could alleviate some of the pressure on interest rates, the reality is that a more volatile world is a more expensive world.
“Even though the most competitive deals will remain below average, anyone looking to buy or remortgage this year should prepare for higher costs than previously expected.”