MPowered and LiveMore will pull products today amid rising swap rates as markets react to the Budget.

Specialist lender MPowered says: “Due to the rise in swap rates, we’ll be revising our fixed rate products at 5:30pm Friday 1 November,” in a note to brokers sent yesterday.

MPowered head of product Peter Stimson said in a video message that Sonia two- and five-year swap rates had risen around 32bps points between Wednesday and Thursday since Chancellor Rachel Reeves delivered her Budget, which raised around £70bn in revenue, roughly divided between tax and borrowing.

Stimson said government bond prices had risen, which knocked on to swap rates “as they are intrinsically linked”.

Hargreaves Lansdown head of personal finance Sarah Coles adds: “The bond market hasn’t loved the level of borrowing baked into the Budget, so the markets are asking the government to pay handsomely for the privilege.

“This means gilt yields rising, which they have done considerably since the speech. Yields continued climbing on Thursday, and passed 4.5% for the first time in a year. This isn’t anything like the carnage after the mini-Budget, because yields have climbed more slowly.

“However, it will take a toll on mortgage rates.”

Later life firm LiveMore will also withdraw loans at 5.30pm today, adding that it will provide “new rates across our entire range on Saturday 2 November”.

It adds, in a note to brokers:

• Generate any key facts illustrations for lifetime mortgages. You will have until 5.30pm on 15 November to convert to applications
• Submit all applications for standard and retirement interest-only mortgages

Yesterday, Paragon Bank pulled a selection of its landlord mortgages, blaming turbulent swap rates.

The landlord lender said it was “withdrawing some of our products” due to the “volatility of swap rates,” in a short note to brokers.