Following HSBC’s surprise decision to withdraw all its mortgage deals for new customers late last week, ahead of yet another hike in interest rates, several other lenders have followed suit.

Clydesdale Bank, part of Virgin Money group, and Saffron building society have both withdrawn mortgage products for new customers as market jitters continue.

Mortgage brokers described the market as being in a ‘state of frenzy’.

Lenders are removing deals from the market at short notice and repricing fixed rates higher as swap rates – the level at which banks lend to each other – have increased significantly in recent days. Lenders use swap rates to price their own fixed rate mortgage deals for customers.

It is hoped that HSBC and Clydesdale will relaunch their fixed rate deals later today, but brokers are expecting new deals to be priced at ‘much higher rates’.

Saffron building society has also withdrawn a range of its fixed rate mortgage deals, including 5% deposit deals for first-time buyers and some buy-to-let products.