1,500 mortgage deals pulled from UK market amid Iran conflict

• The UK mortgage market has experienced a significant contraction, with nearly a fifth (19.5 per cent) of available deals, amounting to 1,492 products, vanishing in just two weeks.
• This rapid reduction in mortgage products follows the Bank of England's decision to maintain its base rate at 3.75 per cent and increased forecasts for UK inflation, partly influenced by the conflict in the Middle East.
• Lenders are withdrawing products and repricing due to rising swap rates and a shift in expectations, with some finance experts now suggesting potential interest rate increases rather than cuts.
• Average fixed-rate mortgage costs have risen sharply, with the two-year fixed rate increasing from 4.83 to 5.43 per cent and the five-year fixed rate from 4.95 to 5.45 per cent since early March.
• While the current volatility is compared to the 2022 mini-budget, experts note the cause is different, stemming from global events and revised inflation outlooks, advising borrowers to prepare for higher costs.

IN FULL

Money experts say 1,500 mortgage deals pulled from market due to Middle East conflict