British lenders withdraw 308 mortgages as rates rise
British lenders pulled 308 mortgage products on Monday as the Iran crisis pushed up borrowing costs. This marks the largest single-day withdrawal since 2022.
Banks in the United Kingdom have withdrawn the highest number of mortgage products in over three years as market volatility intensifies due to the ongoing crisis in Iran. Data from financial services provider Moneyfacts reveals that lenders pulled 308 residential mortgage products from the market on Monday, marking the most significant single-day contraction since the 2022 mini-budget turmoil.
The sudden shift follows a period where mortgage pricing had been gradually decreasing. However, the geopolitical situation has triggered a surge in energy prices and British government bond yields. This has directly impacted the swap rates that lenders use to price their home loan products, forcing a rapid reassessment of available deals.
