The UK mortgage market has seen a sharp decline in available products, with hardly any sub-4% mortgage rates remaining. According to the Daily Mirror, there were just nine fixed-rate deals with rates below 4% on the market on Tuesday morning, down from 490 deals on March 9. Across the mortgage market generally, the outlet reported 689 fewer products on the market on Tuesday morning compared with March 9. Banks and building societies have been increasing their mortgage rates and withdrawing products amid rises to swap rates, which are used by lenders to price mortgages, the Daily Mirror said. According to Daily Mirror, Adam French described choice continuing to fall as lenders pull deals and reprice in response to rapidly rising funding costs with 689 fewer mortgage products available since March 9, almost a tenth of the market.
Quantifying the impact, rate increases have led to higher costs for borrowers. According to Daily Mirror, Adam French described the average two-year fixed mortgage rate jumping from 4.83% at the start of March to 5.28% today, its highest level since April 2025. For a borrower with a £250,000 mortgage over 25 years, that equates to paying £788 more per year on a two-year fix, or £651 more on a five-year deal compared to just a fortnight ago, he noted.
Market uncertainty is compounded by Bank of England expectations, with the central bank due to make its next base rate announcement on Thursday, but expectations of any potential cut have fallen, the Daily Mirror reported. The decline in mortgage products and rising rates reflect broader economic pressures, including inflation concerns linked to the Middle East conflict and adjustments in swap rates that influence lending costs. These factors have created a challenging environment for borrowers seeking affordable home loans, as lenders rapidly adjust their offerings in response to market volatility.