On the 27 September, The Guardian reported that nearly 300 deals had been withdrawn in 24 hours, and financial information service Moneyfacts has since estimated that more than 40% of deals have been pulled in the aftermath of the mini-budget.
Very quickly, mortgage providers started to pull products from the market. Last Tuesday ,
This uncertainty was linked to the steep rise in gilt yields, the interest paid on government bonds. Banks typically use them to price their fixed-rate mortgages, and these rapid changes made it difficult to set rates. According to Moneyfacts, the average rate for a two-year fixed deal is now at 5.75%, compared to 4.74% on the day of Kwarteng’s mini-budget, which puts these rates at their highest level since December 2008.
Providers including Barclays, NatWest, Nationwide and Virgin Money are among those who have returned to the market already, while Halifax, Britain’s largest mortgage lender, is expected to launch its new rates tomorrow .The tumultuous state of the market has made the last week a deeply stressful one for buyers, with widespread reports of chains collapsing in the wake of rising rates and the lack of mortgage products available.
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