Mortgage choice falls as deals are pulled from sale

The data also analysed the effects on mortgage rates. 

Firms within the residential mortgage sector such as Bank of Ireland UK, Bath Building Society, Furness Building Society, among others, have all pulled selected fixed mortgage products over the past few days. 

Aldermore, Foundation Home Loans and Tipton & Coseley Building Society have pulled their entire fixed rate range.

Since the start of last week, the number of mortgages has fallen from 5,385 deals to 5,012.

The average rate on a two- and five-year fixed mortgage has risen to 5.38% and 5.05% respectively since the start of May 2023.

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said: “Borrowers searching for a new deal may well be concerned about the latest developments in the mortgage market. Over the past few days, we have seen a few lenders withdraw selected fixed products, with some pulling out of the market, at least temporarily. 

“Product choice has started to fall, and as may be expected, average fixed mortgage rates are on the rise. This volatility is down to the concerns surrounding future interest rate hikes, and lenders are reassessing their propositions.

“Consumers looking to refinance will find rates around 5% on average for a fixed deal, compared to around 3% a year ago. It is vital borrowers seek advice to assess the situation and to find a mortgage that suits their circumstances.”

Meanwhile, the buy-to-let market has also seen lenders pull fixed deals, and average rates are on the rise.

Within the buy-to-let mortgage sector: Precise Mortgages, Kensington, Kent Reliance, and Marsden Building Society have pulled selected fixed mortgage products over the past few days. Aldermore, Bank of Ireland UK, CHL Mortgages, Fleet Mortgages, Foundation Home Loans and The Mortgage Lender have pulled their entire fixed rate range.

Since the start of last week, the number of buy-to-let mortgages has fallen from 2,748 deals to 2,343. The average rate on a two- and five-year fixed buy-to-let mortgage has risen to 5.61% and 5.52% respectively since the start of May 2023.