Mortgage deals withdrawn in record numbers over rate rise fears

The withdrawal of mortgage products hit unprecedented levels overnight, according to analysts.

Moneyfacts, a financial information service, said that 935 mortgage products were taken off the shelf compared with a day earlier.

It said that was the biggest daily drop it has ever recorded. It was double the previous biggest drop, which occurred during Covid.

This lowers the choice for people buying a first home or remortgaging.

A total of 2,661 mortgage products are still available - but that is half the number that were on sale at the start of December when interest rates started to rise.

The latest surge is the result of lenders' expectations that the Bank of England will soon raise the benchmark rate significantly.

In order to prevent their own deals becoming too cheap in comparison with their rivals, lenders are withdrawing mortgage deals in order to re-price them. They are also guarding against an unmanageable surge in demand if they price too low.

Brokers are reassuring those who already have a mortgage, or an agreement for a new mortgage, that they will be unaffected for the time-being. When they come to remortgage, they will find monthly repayments are likely to become a lot more expensive.

Rachel Springall, from Moneyfacts, said: "Borrowers would be wise to keep calm over the current volatility in the mortgage market and seek the advice from a independent broker. Various lenders have been very vocal that their decision to withdraw products is a temporary measure, amid the uncertainty over interest rates.

"Those looking to remortgage may find they have more equity in their home amid rising house prices, but first-time buyers may be struggling to find a property they can afford."

What have been your experiences of trying to secure a mortgage since the summer? Share your experiences by emailing haveyoursay@bbc.co.uk.

Please include a contact number if you are willing to speak to a BBC journalist. You can also get in touch in the following ways:

If you are reading this page and can't see the form you will need to visit the mobile version of the BBC website to submit your question or comment or you can email us at HaveYourSay@bbc.co.uk. Please include your name, age and location with any submission.