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Nearly 800 mortgage deals pulled from UK market

More than 400 buy to let mortgages and 300 residential mortgages were pulled by UK lenders at the start of last week. This is less than ideal news for anyone who had been planning to buy or remortgage this year, with nearly 10% of mortgage options now unavailable.

Interest rates have been steadily climbing and this combined with high inflation and house price instability has led many lenders to reconsider their offerings. Though there are less mortgages available now, there are still almost double the number on the market compared to the 2,258 on offer in October 2022.

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With house prices dropping and interest rates rising, this has caused significant instability in the UK mortgage market. With 13 consecutive interest rate rises and another likely to happen this month, lenders have decided to reassess the mortgages they are offering. Now, nearly 800 residential and buy to let mortgages have been pulled from the market.

Many lenders have pulled selected 2, 5 and 10 year fixed rate deals and several have removed themselves entirely from the market, until UK rates drop.

The main cause of rising interest is inflation. Inflation in the UK is currently 8.7%, which while an improvement on the previous rate of 10.1%, is still much higher than anticipated. Inflation did decrease in April but at a much slower rate than expected.

Increasing rates are likely to lead to payment difficulties, with rates being particularly since last years Autumn mini budget. Average rates for mortgages started to fall recently. These rates have begun increasing again as inflation failed to fall as much as expected in April.

With the government aiming for 5% inflation by the end of 2023, the main way to achieve this is through continued interest rate rises. It was previously predicted the Bank of England (BoE) base rate would peak at a high of 5.5% before decreasing. This figure is now believed to be closer to 6%, hitting this rate at the end of 2023/start of 2024.

Which lenders have pulled mortgage deals?

Here, we have a full list of lenders that have pulled mortgages and which mortgages are affected.

Buy to let mortgages – 405 mortgages pulled overall

Aldermore – All fixed rate mortgages pulled

Bank of Ireland – All fixed rate mortgages pulled

CHL Mortgages – All fixed rate mortgages pulled

Fleet Mortgages – All fixed rate mortgages pulled

Foundation Home Loans  – All fixed rate mortgages pulled

Kensington – Selected fixed rate mortgages pulled

Kent Reliance – Selected fixed rate mortgages pulled

Marsden Building Society – Selected fixed rate mortgages pulled

Precise Mortgages – Selected fixed rate mortgages pulled

The Mortgage Lender – All fixed rate mortgages pulled

Residential mortgages – 373 mortgages pulled overall

Aldermore – All fixed rate mortgages pulled

Bank of Ireland – Selected fixed rate mortgages pulled

Bath Building Society – Selected fixed rate mortgages pulled

Furness Building Society – Selected fixed rate mortgages pulled

Foundation Home Loans – All fixed rate mortgages pulled

Halifax – Selected fixed rate mortgages pulled

Hinckley & Rugby Building Society – Selected fixed rate mortgages pulled

Kensington – Selected fixed rate mortgages pulled

LendInvest – Selected fixed rate mortgages pulled

Marsden Building Society – Selected fixed rate mortgages pulled

MPowered Mortgages – Selected fixed rate mortgages pulled

Newcastle Building Society – Selected fixed rate mortgages pulled

Principality Building Society – Selected fixed rate mortgages pulled

Scottish Building Society – Selected fixed rate mortgages pulled

Tipton & Coseley Building Society – All fixed rate mortgages pulled

Will more mortgage deals be pulled?

It is possible that lenders will remove more mortgages from the market if inflation remains high, as this will continue driving up interest rates. Higher rates can make mortgages less affordable per month, and lenders will be warier to offer mortgages if the likelihood of defaulting on payments is higher.

What should I do if I was planning to buy this year?

If you were looking to buy a home or remortgage this year, there are still a wide range of options available to you. Although it may be discouraging to see such instability in the market, it can still be possible to find a great mortgage with the right advice.

Our skilled mortgage team have more than 20 years of expertise and knowledge to help you find the right mortgage and rates, no matter your situation. As specialist brokers we can help with both traditional and more complex mortgages including:

Call 0330 118 8188 today to speak to one of our expert brokers or CLICK HERE to submit an enquiry online.

Useful resources

Finder – UK mortgage statistics

Money Facts Group – Mortgage choice falls as deals are pulled from sale

Bank of England – Interest rates and bank rate