Homeowners hoping for lower mortgage rates faced a setback this week as more than 530 deals were withdrawn from the market, accounting for about 7.5% of all available options, according to Moneyfacts.
This marks the fastest pace of withdrawals since the 2022 mini-budget.
As a result, average two-year mortgage rates increased from 4.87% at the beginning of the week to 5.10%, the highest level since July 2025. Similarly, five-year rates rose from 4.98% to 5.19%, reaching levels not seen since April 2025.
Analysts caution that the volatility in financial markets is prompting lenders to withdraw deals, leaving prospective buyers with rising costs and fewer options.
Adam French, head of consumer finance at Moneyfacts said: โItโs unwelcome news for borrowers, as hopes of steadily falling mortgage rates have collapsed and given way to a much more uncertain outlook.
โThe destination is now heavily dependent on how global markets and inflation expectations evolve in response to the conflict in the Middle East.โ
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