Mortgage rates are rising and are expected to keep going up, as the fallout from the Mini-Budget continues.
So, what does this mean - and what should you do next - if you’re a homeowner?
Lenders have been pulling deals over fears for the economy, with some being replaced by higher rates.
Nationwide has already increased fixed rates, with one of its two-year fixes reaching 5.59%.
HSBC and Santander have suspended new mortgage deals.
But mortgage rates have been steadily rising since last November, in expectation of interest rates being hiked.
Last year, the cheapest two-year fixed mortgage was 0.84% - this compares with 3.75% today.
Following the Mini-Budget, markets are now braced for interest rates to hit 6% next year - in what would spell further misery for homeowners.
The Bank of England increased its base rate for the seventh time in-a-row last week to 2.25%.
It was at 0.1% last year, although it is still low compared to historic levels.
What does the base rate mean for your mortgage
Whether the base rate affects you or not depends on the type of mortgage deal you have.
If you have a tracker mortgage, your monthly repayments will move in line with the base rate - so if interest rates go up, then so does your mortgage.
Most standard variable rate (SVR) deals will also become more expensive, although it is down to your lender to decide whether they put up your rates.
About a fifth of households are on a tracker or SVR deal.
If you have a fixed-rate mortgage, then you’ll be protected from any rises until your current deal comes to an end.
But when you come to remortgage, you’ll likely face paying thousands of pounds more due to how much rates have risen over the last few months.
What to do if you have a variable mortgage
If you're on a tracker or SVR mortgage, and you know your new rate, see if you can save money by switching to another deal.
Start by comparing what other deals are out there by using a free comparison website - you should also talk to your current lender.
Getting a new deal with your existing lender is known as a “product transfer”.
Once you’ve compared all the different options available right now, note down all the important bits of information of your current deal so you can get an accurate price comparison.
For example, remember to look at your current rate, the terms and length and any exit fees, as well as the loan to value (LTV).
Always speak to a mortgage advisor if you’re unsure about which deal to go for.
What to do if you have a fixed-rate mortgage
For anyone coming to the end of a fixed-rate mortgage, there will be fewer - and more expensive - deals to choose from.
Moneyfacts said 935 mortgage products were taken off the shelf compared with a day earlier - the biggest daily drop it has ever recorded.
A total of 2,661 mortgage products are still available - but that is half the number that were on sale at the start of December.
It is best to start actively looking for a new deal as soon possible, as the market is changing rapidly.
Some lenders let you lock in a rate six months in advance - and many more let you lock in three months ahead.
Again, you may want to talk to a mortgage broker who can track down the best rates.
If your fixed-rate deal isn't going to end soon, then you'll need to factor in any early exit penalty fees to work out if you'll be better off leaving now.
Remember as well, the longer you fix - the more of a gamble you're taking on future prices.
Can a lender withdraw my offer?
A mortgage offer is a promise that a lender will give you a specific amount of cash under certain circumstances.
Lenders can technically rip up this offer at any point until completion - although they normally only do this 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.
This situation right now is changing rapidly.
Yesterday, some estate agents had reported that offers were being pulled - despite experts originally saying that this wasn't happening.
Why have mortgage deals been pulled?
Banks and lenders have been rattled by the Mini-Budget and the uncertainty of how the Government will afford massive tax cuts.
This saw mortgage deals being pulled while the market takes time to pull back to analyse the situation - as mortgage rates are based on a long-term outlook.
The dramatic fall in the pound on Monday led to fears of inflation – because the price of anything that’s imported will rise.
As a result, it led to expectations that the Bank of England would hike rates to try to bring it back down again.
"The dramatic overnight hike in market expectations of future rates has ramped up the cost of doing business," explained Sarah Coles, senior personal finance analyst at Hargreaves Lansdown.
"Lenders are taking a break to reassess and reprice."
