Major mortgage warning as 1.5k deals ‘pulled’ | Personal Finance | Finance
An expert has urged Brits to take action (Image: Getty)
Brits have been told to take action as 1,500 mortgage deals have been “pulled” since the war between Iran and the United States and Israel started. An expert has suggested that rates are expected to continue to rise in the coming weeks. Jinesh Vohra, CEO of Sprive, urged homeowners to “act early” by reviewing their deals and overpaying where possible in order to mitigate the impact of rising rates.
Mr Vohra said: “Lenders pulling over 1,500 deals and new expectations of multiple rate rises this year show just how quickly things can shift – and how exposed homeowners are to global events far beyond their control. When markets react like this, lenders pull back fast. For borrowers, this means higher costs and fewer options almost overnight. And can have an immediate impact for those looking to buy or sell.
“Homeowners should be thinking proactively now, reviewing their deal early where possible, and overpaying if they can to reduce the impact of higher rates.”
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An expert says mortgage holders should ‘act early’ (Image: Getty)
He added: “In an environment like this, the homeowners who stay on the front foot are the ones who come out ahead.”
The specialist also said his firm can “help in this kind of environment, allowing homeowners chip away at their mortgage by earning cashback towards their mortgage from their everyday spending, without having to make huge lifestyle cuts and build resilience against rising costs.”
Homeowners’ choice of mortgage deals shrunk by nearly a fifth over the past couple of weeks, with nearly 1,500 fewer deals available, according to analysis from a financial information website.
Moneyfacts said that, as of this morning, there were 1,492 fewer residential mortgage products available compared with March 9, meaning the number of available products has shrunk by 19.5%.
Some 744 deals have disappeared since Thursday last week, experts said.
The war in the Middle East has had far-reaching consequences (Image: Getty)
On that day, the Bank of England base rate was held at 3.75%, but forecasts for UK inflation were also hiked.
Moneyfacts said homeowners will find the the average two-year fixed-rate mortgage has risen from 4.83% at the start of March to 5.43% on Monday morning.
The average five-year fixed-rate deal on the market has risen from 4.95% at the start of March to 5.45%.
Adam French, head of consumer finance at Moneyfacts, said: “Rates continue to climb as lenders scramble to keep pace with rising funding costs.
“The average two-year fixed-rate has gone from 4.83% at the start of March to 5.43% today, its highest level since February 2025. The average five-year fix has gone from 4.95% to 5.45%, now at its highest since July 2024. Even the very cheapest deals have shifted significantly.”
