The UK mortgage market is experiencing its most intense turbulence since the mini-Budget of 2022, according to financial information service Moneyfacts.
The average rate on two-year fixed deals has risen above 5%, the highest level since August, while five-year mortgages are at their most expensive since June, Moneyfacts reported.
As reported by Moneyfacts, nearly 500 mortgage products have been pulled off the shelves in the last two days, the highest number since the aftermath of the mini-Budget.
Market Response
Adam French, head of consumer finance at Moneyfacts, stated: "Recent days have been some of the most turbulent in the UK mortgage market since the aftermath of the September 2022 mini-Budget."
French added: "It's unwelcome news for borrowers, as the prospect of falling mortgage rates has quickly given way to rate rises."
Interest Rate Changes
The average rate on a two-year fixed deal stood at 5.01% on Wednesday, up from 4.84% on Friday, while the average rate on a five-year fixed deal has risen from 4.96% to 5.09% over the same period.
According to Moneyfacts, 472 residential mortgage products have been withdrawn from the market over the last two days, around 6.5% of the market, with 7,164 deals still available.
Global Market Impact
The US-Israel war with Iran has led to rising oil prices, with the average cost of unleaded petrol rising by 1p to 139p a litre, and diesel increasing by 2p to 155.1p, according to RAC head of policy Simon Williams.
Williams noted that diesel has increased by nearly 13p, or 9%, since 28 February, and could reach around 167p a litre if oil prices settle at around $90 a barrel.
