While some may hope this will be a “temporary blip”, Springall points out that it will depend on how long the current volatility continues and how the markets expect the Bank of England base rate to change.
The average two-year fixed mortgage rate soared above the average five-year fixed rate after the fall-out from the September 2022 mini-Budget. This inversion remained for around three years, as it wasn’t until August 2025 that the average two-year fixed rate finally dropped below the average five-year rate, signalling a return to a more “traditional” market.
More than 1,500 mortgage deals disappear
In addition to rising rates, lenders have withdrawn more than 1,500 mortgage products since 9 March 2026, which is roughly equivalent to a fifth of the overall market, Moneyfacts’ data revealed. This means borrowers now have fewer than 6,000 mortgages to choose from.
On 21 March alone, product choice fell by 448 deals – the highest amount in a single day since the aftermath of the September 2022 mini-Budget.
Even though product numbers showed a slight recovery between 24 and 25 March, Springall notes that, when products return to the market, “they will likely be at inflated rates to catch up with the current state of play”.
Shock for first-time buyers
First-time buyers have been hit particularly hard by the recent volatility, as the average two-year fixed rate on deals at 95% loan-to-value (LTV) has soared above 6%.
Springall calculates that, for those taking out a two-year fix now compared to the start of March, this hike in rates could add around £1,200 per year to their mortgage repayments. This is based on a mortgage of £250,000 with a 25-year term, with a two-year fixed interest rate of 6.10% vs. 5.45%.
In a further blow to those looking to get on the property ladder, more than 200 deals at the 95% LTV tier have been withdrawn since 6 March 2026. On Saturday 21 March alone, 52 deals were pulled, marking the biggest daily fall in product numbers at this tier since the mini-Budget.
Will mortgage rates continue to rise?
There are many factors that influence mortgage pricing, but the Bank of England base rate and swap market perhaps have the most sway.