Homebuyers have been given ‘unwelcome news’ (Image: Getty)
Homebuyers have been given “unwelcome news” after hundreds of mortgages disappeared from the market in days. According to financial information website Moneyfacts nearly 500 deals disappeared over a 48-hour period.
Turbulence in the market has also seen average mortgage rates passing the 5% mark as lenders raised their rates. The organisation said on Wednesday that over the past 48 hours, 472 residential mortgage products have been taken off the market. That is about 6.5% of the market, with still 7,164 deals available – however it is the biggest fall in available mortgages since the mini-budget in September 2022.
A number of rate rises has already taken place among Britain’s biggest lenders over recent days, with more to come. HSBC UK is set to make further rate increases on Thursday, following its rate rise on Friday last week.
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Nicholas Mendes, mortgage technical manager at John Charcol, said prospective borrowers needed to keep their options open while keeping an eye on the market. He said: “HSBC’s move highlights how quickly lenders can respond when funding costs shift. Swap rates rose sharply earlier in the week as markets reassessed inflation risks linked to higher oil prices and geopolitical tensions, and that pressure is now feeding through into mortgage pricing. When a lender of this size reprices across so many parts of the market it often signals margins are being squeezed.”
Mr Mendes said there were signs on Wednesday that some volatility may be settling, but added: “Lenders tend to reprice with a lag after sharp movements in funding costs. If swaps stabilise at these levels, we may see pricing settle again, but the past few days show how quickly market sentiment can change when geopolitical events feed into inflation expectations.
“For borrowers, it’s another reminder that mortgage pricing can move quickly during periods of market uncertainty, so anyone approaching a purchase or remortgage may want to keep a close eye on rates and consider securing a deal early while keeping their options open.”
The biggest single day fall for residential mortgages recorded by Moneyfacts was the removal of 935 products on September 27 2022, which it said was a little over 25% of the deals available at the time. Average mortgage rates on the market are now at levels not seen since last summer.
The average two-year fixed homeowner mortgage rate on Wednesday morning was 5.01%. This is up from 4.84% on Friday last week and the highest level since it was also 5.01% on August 6, 2025.
The average five-year fixed homeowner mortgage rate on Wednesday morning was 5.09%. This is up from 4.96% on Friday last week and the highest level since it was 5.09% on June 26, 2025.
The overall average Moneyfacts mortgage rate opened on Wednesday morning at 5.04%. This is up from 4.91% on Friday last week and the highest level since August 7 2025, when it was also 5.04%.
Adam French, head of consumer finance at Moneyfactscompare.co.uk, said: “Recent days have been some of the most turbulent in the UK mortgage market since the aftermath of the September 2022 mini-budget. In the last 48 hours, almost 500 residential mortgage products have been withdrawn as lenders reacted to rapidly rising swap rates.
“However, the scale is nowhere near the shock seen in late September 2022 when 935 products, which accounted for more than a quarter of the market at the time, disappeared in a single day. Many of these deals are likely to return within the next few days and weeks as lenders adjust their pricing to higher rate expectations.
“Moneyfacts average mortgage rates have also jumped considerably higher, with the typical two-year fixed rate now at 5.01% for the first time since August 2025 and the average five-year fix surging past 5% to reach 5.09%. Mr French added: “It’s unwelcome news for borrowers, as the prospect of falling mortgage rates has quickly given way to rate rises. How far they could go is now heavily dependent on how global markets and inflation expectations evolve as conflict in the Middle East unfolds.”