The average mortgage rate has surged by 59 basis points since the outbreak of war climbing from 4.89% in late February to 5.48% this morning and gaining 14bps in the last day alone.

Data from Moneyfacts shows the average rate across all types of product is now at its highest level since August 2024.

Yesterday saw lenders scrambling to withdraw products or hike prices amid soaring swap rates, causing the average rate to spike.

The average two-year fix is now 5.51% and average five-year fixed is now 4.95%, the comparison site’s latest data reveals.

Mortgage availability has shrunk by a fifth as around 1,500 deals have been withdrawn by lenders since the start of the conflict.

First-time buyers have been particularly badly hit as lenders have pulled  204 95% loan-to-value deals in the past few weeks, Moneyfacts found.

Moneyfacts finance expert Rachel Springall says: “Borrowers with a small deposit will also feel disheartened to find the average rate on a two-year deal at 95% loan-to-value has risen to 6.1%, with the five-year equivalent not too far off the 6% mark at 5.93%. 

“This will be a shock to first-time buyers especially, as many will not be able to build a deposit bigger than 5% due to the cost of living. 

“As a casualty of the turmoil in the market, 204 deals have disappeared at the overall 95% loan-to-value tier, since March 6. 

“Saturday saw the biggest daily fall of 52 options since the mini-Budget, and 30 more options have gone as of this morning, with nine lost yesterday.”

Looking back to the mini Budget, she says that on 28 September 2022, 52 options vanished in one day.

Springall adds: ““There appears to be no rest in sight for more upheaval to the mortgage market, with more deals withdrawn this morning it means the availability of residential mortgages has shrunk by 21% (a fifth) since the March 6 and there are now fewer than 6,000 options.

“Swap rates continue to sit above 4%, so it is likely more lenders will need to reassess their ranges this week if they have not passed on a big enough margin to cuts over the past few weeks. 

“It will be essential for borrowers to seek independent advice to keep on top of the mortgage mayhem.”