- The UK mortgage market has experienced its most significant contraction since the tumultuous period following the mini-budget, with hundreds of products abruptly pulled from sale.
- Financial information provider Moneyfactscompare.co.uk reported that 472 residential mortgage products were withdrawn over the past 48 hours.
- The website highlighted this as the largest reduction in offerings since September 2022, when the mini-budget triggered widespread market instability and some average mortgage rates also surpassed the 5 per cent threshold.
- For comparison, Moneyfacts recorded its biggest single-day drop on 27 September 2022, when 935 residential mortgages – over a quarter of the available products – were pulled.
- Adam French, head of consumer finance at Moneyfactscompare.co.uk, said mortgage products have been withdrawn as lenders reacted to rapidly rising swap rates. “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,” he said.
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