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Revealed: 41% of deals pulled since mini-budget as mortgage chaos grips UK

Since Kwasi Kwarteng's mini-Budget last Friday - which has caused a run on the pound and mass panic in financial markets - some 41% of mortgage products have been taken off the market, the Guardian has revealed.

This has come amid expectations of a leap in the Bank of England’s base rate to 6% by next summer and predictions of price falls of 10% in 2023.

According to Moneyfacts, a further 321 products were withdrawn overnight on Wednesday, following on from the record 935 pulled on Tuesday.


Between Friday last week and Thursday of this week, 1,621 residential mortgage products overall have been withdrawn, leaving 2,340 on sale as of today.

The situation has been so bad that over 20 providers have withdrawn their entire fixed-rate mortgage range.

"What products are left are changing at a rapid pace, lenders seem to be really unsure of what to offer and what price with so many changes in the money markets at the moment," Kate Brain of financial firm Defaqto told the newspaper.

Meanwhile, consumer champion Martin Lewis, founder of MoneySavingExpert, tweeted: "For every £100,000 of mortgage, you'll pay roughly £600 a year more for each 1% pt interest rate rise. Top fixes today are 3%ish more than a year ago (so £1,800 per £100,000). If UK rates rise to 6%, as some predict mortgages'd likely rise more than another 3% again BUT...That assumes people will be accepted for the top fixes. At those rates of interest though many more will likely fail the affordability checks - which means likely sticking with their own lenders (poss costlier) fix or moving onto standard variable rates, which are even higher."


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