Hopes of steadily falling mortgage rates have ‘collapsed’ and given way to a much more uncertain outlook, Moneyfacts said.
Hopes of mortgage rates steadily easing have “collapsed”, with at least 530 homeowner mortgage deals having vanished from the market since Monday, according to a financial information website.
Moneyfacts said the number of mortgages disappearing from the market since then represents about 7.5% of deals.
Some average mortgage rates have already broken through the 5% mark amid changing financial markets, and Moneyfacts said earlier this week that mortgage deals have been withdrawn at the fastest pace since the 2022 mini-budget.
Moneyfacts said on Friday that the average two-year homeowner mortgage rate on the market was 5.10% – up from 4.87% on Monday. The rate is at its highest since July 2025.
The average five-year homeowner mortgage rate on Friday was 5.19%. This was up from 4.98% on Monday and the highest since April 2025.
Adam French, head of consumer finance at Moneyfacts, said even the cheapest rates are shooting higher, adding: “It’s unwelcome news for borrowers, as hopes of steadily falling mortgage rates have collapsed and given way to a much more uncertain outlook.
“The destination is now heavily dependent on how global markets and inflation expectations evolve in response to the conflict in the Middle East.”
