More than 10 banks and building societies are pulling or tweaking mortgages - and are now pulling mortgage offers.
Lenders are withdrawing new mortgages due to the economic fallout from the Government's Mini-Budget last week.
These banks are pulling deals for new customers as they think mortgage rates will soon soar further.
Experts think interest rates could rise from 2.25% to 6% next year, as the Bank of England battles against high inflation - currently 10.1%.
Base rate is factored in to the cost of financial deals like mortgages.
If base rate goes up, tracker mortgage prices go up almost straight away, as do new fixed rate mortgage costs.
Has your mortgage already gone up because of rising interest rates? Let us know: mirror.money.saving@mirror.co.uk
Lenders are withdrawing or tweaking some of their deals to reprice them, but also to avoid lending to customers who may not be able to pay their loans back if costs rise.
For example, the Skipton Building Society said it had withdrawn its offers for new customers, in order to “reprice” given the market movement in recent days.
Can a lender withdraw my mortgage offer?
Yes - but it is rare.
A mortgage offer is a promise that a lender will give you a specific amount of cash under certain circumstances.
But lenders can rip up this offer at any point until completion - the point you have paid for the house and taken ownership.
Normally lenders only withdraw offers for serious reasons.
These include your situation changing seriously, the house not completing by the mortgage deadline, you lying about something or if the value of the house falls sharply.
Lenders can also withdraw offers if something big comes up that means you might not be able to make mortgage repayments.
That is now happening.
But just a few days ago mortgage brokers said no offers were being withdrawn.
David Hollingworth, of L&C Mortgages, said: "I really don't think pulling offers is where lenders are headed with this.
"The impact of recent days on the market is all about new business pricing.
"Borrowers are facing reduced choice when looking for a deal right now.
"But if they have already got a mortgage offer they shouldn't worry it will be taken away from them."
The full list of lenders pulling or tweaking new mortgage deals so far is:
- Halifax
- Virgin Money
- Skipton Building Society
- Clydesdale Bank
- Scottish Building Society
- Leek United Building Society
- Nottingham Building Society
- Bank of Ireland
- Paragon Bank
- Darlington Building Society
More are likely to follow.
The Skipton Building Society said it had also withdrawn its offers for new customers, in order to “reprice” given the market movement in recent days.
Virgin Money said: “Given market conditions we have temporarily withdrawn Virgin Money mortgage products for new business customers.
“Existing applications already submitted will be processed as normal and we’ll continue to offer our product transfer range for existing customers.
“We expect to launch a new product range later this week.”
Halifax also said it is withdrawing all mortgages that come with a fee.
