Almost 800 mortgage deals have been pulled since last week over fears of further interest rate rises.
New data from Moneyfacts shows the number of residential mortgages has fallen from 5,385 deals to 5,012.
The number of buy-to-let deals has dropped from 2,748 to 2,343.
Meanwhile, average rates on two and five-year fixed mortgage deals have also gone up, in further misery for homeowners.
The average rate on a two-year fixed deal now sits at 5.38%, and the figure is 5.05% for the average five-year fix.
This is compared to the average two-year fix coming in at 3.03% last May, and 3.17% for the average five-year deal.
But analysts note that rates are still down compared to after the disastrous Mini-Budget last September, when they peaked at around 6.5% on average.
Rachel Springall, finance expert at Moneyfacts, 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.”
Ms Springall explained how the volatility “is down to the concerns surrounding future interest rate hikes” after inflation figures came out higher than expected last week.
Consumer Price Index (CPI) inflation - which measures how prices change over time - slowed in April by less than expected to 8.7%.
Some analysts are now predicting the Bank of England will have to raise interest rates to as high as 5.5% to try and bring inflation under control.
By raising interest rates, borrowing becomes more expensive, and so the Bank hopes people will spend less and inflation will drop as a result.
“Consumers looking to refinance will find rates around 5% on average for a fixed deal, compared to around 3% a year ago,” said Ms Springall.
“It is vital borrowers seek advice to assess the situation and to find a mortgage that suits their circumstances.”
Why are mortgage payments rising?
If you're on a tracker mortgage, these types of deals move in line with the base rate - so when interest rates rise, your monthly payments will go up.
If you're on a standard variable rate (SVR) mortgage, then you'll likely see your rates go up as well when the base rate increases.
It is down to your lender to decide whether to pass on the increase - and unsurprisingly, most do decide to do this.
If you’re on a fixed-rate mortgage, the rate rise won’t affect your monthly bill until your current deal expires.
This means you're protected for now - but many who locked into their mortgage deal when rates were cheap will be in for a nasty shock when they come to remortgage, due to how much rates have risen.
If you're on a variable rate or your mortgage is ending in the next six months, you might want to check now if you can lock into a new deal.
Many lenders let you secure a new deal three to six months in advance.
If rates do come down, then you might be able to cancel the deal you've agreed to - but check with your lender before signing up first.
