Mortgage rates have climbed above 5%, while hundreds of mortgage products have been withdrawn from the market. Here’s what you need to know.
Mortgage rates have gone up in the wake of the war in Iran. The UK mortgage market has seen a sudden shift in recent days, with average mortgage rates rising and lenders withdrawing hundreds of products.
According to the latest data from Moneyfacts, the average mortgage rate stood at 5.04%, up from 4.91% last Friday, marking its highest level since August 2025. Both two-year and five-year fixed mortgage rates have also risen sharply.
The average two-year fixed residential mortgage rate now stands at 5.01%, compared with 4.84% just a few days ago, while the average five-year fixed rate has climbed from 4.96% to 5.09%.
Lenders have also withdrawn a significant number of mortgage products. In the last 48 hours alone, 472 residential mortgage deals were removed from the market, representing around 6.5% of all available products. The total number of residential mortgage products available now stands at 7164.
Fewer mortgage deals
This marks the largest fall in available mortgage deals since the aftermath of the September 2022 Mini-Budget, when the market was extremely volatile. At that time, a record 935 mortgage products were withdrawn in a single day, accounting for more than a quarter of all deals available.
The current situation clearly isn’t good news, but it’s still far less dramatic than the disruption seen in 2022.
Many lenders have temporarily withdrawn deals as they reassess pricing in response to rapidly rising swap rates, which influence mortgage pricing. However, many of these withdrawn products could return to the market in the coming days or weeks, once lenders adjust their rates to reflect changing market conditions. Things could settle down.
Base rate review
Before the recent events involving the US, Israel and Iran, financial markets had been anticipating a rate cut during the next base rate review on 19 March. However, rising oil prices and inflation concerns could make this unlikely.
For borrowers – particularly if you’re approaching the end of a fixed-rate deal or first-time buyers entering the market – these changes underline the importance of seeking advice from an experienced broker.
If you’re due to remortgage, or you’re considering moving home or buying your first property, we’re here to offer advice and help you explore your options.
We’re here to help if you have any questions. Call MB Associates, mortgage brokers in Surrey, on 020 8652 5240