Nearly 800 mortgage deals withdrawn

Lenders have withdrawn nearly 800 fixed-rate mortgage deals over the last week, according to new data from financial experts Moneyfacts.

The data shows that lenders are more cautious to offer mortgages due to uncertainty over future interest hikes.

Despite inflation falling in April, prices are still significantly higher compared to a year ago. As a result, the Bank of England is expected to tighten monetary policy further next month.

The number of residential mortgage deals fell from 5,385 to 5,012 between 22 and 30 May, leaving many homeowners and first-time buyers with fewer borrowing options.

Property investment opportunities for landlords are even more limited, with the number of buy-to-let mortgage deals falling from 2,748 to 2,343 over the same period.

Mortgage rates are also steeper, with both two-year and five-year fixed-rate mortgage deals higher than 5% on average - compared to just 3% a year ago.

Rachel Springall, finance expert at Moneyfacts, said:

"Over the past few days, we have seen a few lenders withdraw selected fixed products, with some pulling out of the market, at least temporarily.

"This volatility is down to the concerns surrounding future interest rate hikes, and lenders are reassessing their propositions."

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