Average two- and five-year fixed-rate mortgage rates have both risen above 5% as the inflationary impact of the conflict in the Middle East causes lenders to rush to revaluations.
The average two-year fix is now 5.01%, up from 4.84% on March 6, while the typical five-year fix is now 5.09%, up from 4.96%, according to financial experts Moneyfacts.
Moneyfacts said 472 homes mortgage products were withdrawn of the market in the last 48 hours.
This is approximately 6.5% of the total residential mortgage market, which now stands at 7,164 available products.
This is the largest drop in the number of mortgage products available since the aftermath of the mini-Budget in September 2022.
The largest decline in residential mortgage products ever recorded was the withdrawal of 935 residential mortgage products on September 27, 2022.
This was just over 25% of the mortgage products available at the time.
Adam French, head of consumer finance at Moneyfacts, said: “Many of these deals are likely to return in the coming days and weeks as lenders adjust their prices to reflect higher interest rate expectations.
“It is unwelcome news for borrowers as the prospect of falling mortgage rates has quickly given way to rate hikes. How far they can go now depends heavily on how global markets and inflation expectations evolve as the conflict in the Middle East unfolds.”