Clydesdale Bank is withdrawing all fixed rates for new customers tonight, as new data shows that 1,500 deals have been pulled since the start of the war.
Buy-to-let lender Rely is also withdrawing all products this evening, but says it will relaunch new deals tomorrow.
Coventry withdrew all new customer fixed deals yesterday and has yet to replace them, while Fleet is pulling all fixed rate products at 5pm today.
Meanwhile, Halifax, BM Solutions, Nationwide, TSB, Pepper and Gen H are the latest lenders to announce price hikes.
New data from Moneyfacts shows the number of products on the market has shrunk by 1,492 products since March 9.
The comparison site also reveals the average two-year fix has risen from 4.83% at the start of March to 5.43% today, it’s highest since February 2025.
The average five-year fix has climbed from 4.95% at the start of March to 5.45% today, its highest since July 2024.
Moneyfacts head of consumer finance Adam French says “Hundreds of mortgage products have been withdrawn, and rates continue to climb as lenders scramble to keep pace with rising funding costs.
“Even the very cheapest deals have shifted significantly, with the lowest rate available to borrowers across the UK now at 4.01%, up from 3.51% before the conflict with Iran began.
“Hundreds of mortgage products have been withdrawn since the base rate decision last week, taking the total reduction to almost 1,500 deals since the conflict in Iran began – around a fifth of the market.
“The combination of rising rates and falling choice is a direct response to the conflict in the Middle East which has dramatically shifted expectations around inflation and interest rates.
“Many deals are likely to return to the market in the coming days and weeks but repriced at higher rates.
“While a quicker resolution to the conflict could ease some of the pressure on rates, the reality is that a more volatile world is a more expensive world.
“Even though the most competitive deals will remain below average, anyone looking to buy or remortgage this year needs to prepare for higher costs than previously expected.”
