There are hundreds of residential mortgage deal offers in the U.K. that have been pulled.
According to data from Moneyfacts, 955 mortgage products were removed from the market on Tuesday. According to the company, this was the largest daily drop on record, with the previous high being 476 when the first U.K. Covid lockdown was announced in 2020.
Natwest repriced their products, increasing rates, while HSBC and Santander paused their mortgage product offerings.
Some products for new customers and increased rates for existing and new borrowers were halted but will be reviewed in light of market conditions.
NatWest and HSBC did not reply immediately.
Some mortgage deals were temporarily pulled by Virgin Money, Halifax and Skipton Building Society.
People are worried that mortgage rates will become too expensive. There have been reports that house sales fell through due to market uncertainty.
The U.K. bond and currency markets have been in turmoil. The British pound fell to an all-time low against the dollar after his announcement.
The yield on the U.K. 10-year gilt hit a 14-year high earlier in the week. The market moves sparked inflation fears and led investors to believe that the Bank of England would hike interest rates.
The central bank said it would intervene in the bond market and buy bonds.
As the base rate is the benchmark for U.K. mortgage and loan products, markets quickly began to price in a high base rate for next year.
According to a research note from Pantheon Macroeconomics, a two-year fixed rate mortgage could be worth as much as $670 per month.
Due to the market chaos, borrowers have less options when trying to find a mortgage deal, which could cause prices to go up even more.
Rachel Springall said borrowers shouldn't panic.
"Borrowers would be wise to keep calm over the current volatility in the mortgage market and look for advice from an independent broker." Springall said that various lenders have been very vocal about their decision to withdraw products.
The head of U.K. rates strategy at NatWest spoke to CNBC on Tuesday and said that she believed mortgage products being pulled is a temporary issue.
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