Latest figures from comparison site moneyfactscompare.co.uk reveal that the number of residential mortgage deals has fallen sharply in the last week, with some UK lenders opting to remove their entire range of fixed-rate products from the market. A total of 373 deals have been pulled in the last 7 days. In this article, we reveal the lenders responsible and the likely reason for the recent changes in the mortgage market.
Lenders that have pulled mortgage deals in the last week
- Aldermore (Entire fixed-rate range)
- Bank of Ireland UK (Selected products)
- Bath Building Society (Selected products)
- Foundation Home Loans (Entire fixed-rate range)
- Furness Building Society (Selected products)
- Newcastle Building Society (Selected products)
- Halifax (Selected products)
- Hinckley & Rugby Building Society (Selected products)
- Kensington (Selected products)
- LendInvest (Selected products)
- Marsden Building Society (Selected products)
- MPowered Mortgages (Selected products)
- Principality Building Society (Selected products)
- Scottish Building Society (Selected products)
- Tipton & Coseley Building Society (Entire fixed-rate range)
- Vernon Building Society (Selected products)
Why have there been changes in the mortgage market?
Experts had predicted inflation to fall to around 8.2% in April. However, the Office for National Statistics (ONS) revealed that it had only slowed to 8.7%, and markets reacted negatively.
In response to the recent fall in mortgage deals on the market, Rachel Springall, finance expert at moneyfactscompare.co.uk said "This volatility is down to the concerns surrounding future interest rate hikes, and lenders are reassessing their propositions."
While the number of mortgage deals has fallen from 5,385 to 5,012 in the last week, the total number of deals available is still more than double those that were available following the fallout from the now infamous mini-budget back in October 2022.
Average 2-year and 5-year fixed-rate mortgage deals
Product choice has fallen over the last few days, with lenders choosing to withdraw selected fixed-rate products from both the residential and buy-to-let mortgage market, with some pulling out of the market altogether. As a result, average rates on 2 and 5-year fixed-rate residential mortgages have increased slightly in recent weeks, but still remain lower than the highs experienced in October 22.
| May 22 | Oct 22 | 30th May 23 | |
| Average 2-year fixed-rate deal | 3.03% | 5.43% | 5.38% |
| Average 5-year fixed-rate deal | 3.17% | 5.23% | 5.05% |
Figures provided by moneyfactscompare.co.uk. Correct as at 30.05.23
How to get the best mortgage rates in the UK
While the news of product withdrawals may cause some concern among borrowers, competition in the mortgage market remains. So while missing out on a mortgage deal is no doubt frustrating, similar deals are likely to be available elsewhere.
To get an idea of the best mortgage deals available in the UK, check out our regularly updated article 'Best mortgage rates in the UK'. The page lists the best 2-year and 5-year fixed-rate deals as well as the best tracker mortgage deals, best first-time buyer mortgage deals and best buy-to-let mortgage deals in the UK.
Alternatively, you can check for the best rates using our mortgage comparison tool. The tool can help you find some of the best mortgage deals based on your loan-to-value ratio.
To get the best mortgage for your specific needs, you should consider speaking with an independent mortgage broker. A broker is able to offer the best deals not directly available to consumers. They can also provide advice and guidance throughout the application process.
If you don't have your own mortgage broker, you can source a locally vetted mortgage professional using VouchedFor*. Alternatively, consider using online mortgage specialist Habito*, which has access to over 90 lenders and can provide independent, tailored advice online or over the phone.
Finally, for the latest analysis and insight on whether interest rates are likely to rise or fall, check out our regularly updated article 'When will interest rates rise (or be cut)?'.
