UK mortgage rates have surged past 5% as lenders pull hundreds of deals in response to market volatility. The average two-year fixed rate now stands at 5.01%, while five-year fixes have reached 5.09%, the highest levels since mid-2025.

Over the past 48 hours, 472 residential mortgage products – around 6.5% of the market – have been withdrawn, marking the sharpest short-term drop since the 2022 mini-Budget turmoil.

The biggest single day fall of residential mortgage products on record was the withdrawal of 935 residential mortgage products on 27 September 2022. This was a little over 25% of available mortgage products at that time.

Adam French, head of consumer finance at Moneyfactscompare.co.uk, said: “Recent days have been some of the most turbulent in the UK mortgage market since the aftermath of the September 2022 mini-Budget. In the last 48 hours almost 500 residential mortgage products have been withdrawn as lenders reacted to rapidly rising swap rates. However, the scale is nowhere near the shock seen in late September 2022 when 935 products, which accounted for more than a quarter of the market at the time, disappeared in a single day.

“Many of these deals are likely to return within the next few days and weeks as lenders adjust their pricing to higher rate expectations. Moneyfacts average mortgage rates have also jumped considerably higher, with the typical two-year fixed rate now at 5.01% for the first time since August 2025 and the average five-year fix surging past 5% to reach 5.09%.

“It’s unwelcome news for borrowers, as the prospect of falling mortgage rates has quickly given way to rate rises. How far they could go is now heavily dependent on how global markets and inflation expectations evolve as conflict in the Middle East unfolds.”