Published 21st Mar 2026, 11:45 GMT
For homeowners preparing to remortgage, the sudden shift means higher borrowing costs and fewer options than were available only weeks ago.
Several of Britain’s biggest lenders – including Santander UK, Barclays, Halifax, Lloyds Bank, NatWest, HSBC UK and Nationwide Building Society – have increased mortgage rates, alongside many smaller lenders.
Financial information website Moneyfacts said at least 530 homeowner mortgage deals have vanished from the market since early March, representing about 7.5 per cent of products available.
Meanwhile, the average “shelf life” of a mortgage has fallen to just two weeks – the shortest period seen in more than two years, it says.
The withdrawals follow a rise in “swap rates” – the financial market rates lenders use to price fixed mortgages – which have climbed amid economic uncertainty and inflation concerns linked to conflict in the Middle East.
Average mortgage rates on the market have also climbed above five per cent, according to Moneyfacts. For borrowers facing the prospect of refinancing in the coming months, the current volatility has prompted advisers to urge early action.
Andrew Milnes, head of the Mortgage Advice Bureau Bingley, says global events could continue to influence the outlook for interest rates and household finances. “Inevitably the Middle East conflict will drive up global inflation.
“The UK’s hope for a two per cent target by summer 2026 is now unlikely to be reached, meaning the cost of living pressure is now likely to persist through the year. That’s why it’s vital to get some certainty and stability into what is probably your biggest monthly outgoing.”
His key message to borrowers is not to delay seeking advice.
“Seek advice early, don’t sit and wait hoping it may get better, talk to someone who is looking at the market daily and can be quick to react for you, given the scenarios mentioned above, of rate and product withdrawal,” he says.
“If you are within six months of your deal ending, you should seek advice and try to lock in a rate now. Most offers can be changed if rates miraculously drop later, but they provide a vital ‘insurance policy’ against further escalations.”
Mortgage experts say understanding the options available is particularly important during periods of volatility.
Jatin Patel, head of mortgages, savings and insurance at Barclays, adds: “Homeowners can lock in a new deal up to 90 days before their current fixed rate expires, but with flexibility if circumstances or rates change. This can provide peace of mind for those who want to protect themselves against short-term volatility, whilst planning ahead.”
Here are some suggestions from Mr Patel for mortgage holders to bear in mind: 1. Remember fixed rates are locked in. If you are currently on a fixed deal, it is important to remember that your rate and monthly payments will not change until that deal ends, regardless of what is happening in the wider world. 2. Use the time before taking out a new deal to get prepared. Even if your deal does not end for a while, it is worth reviewing your household budget and understanding what your options might be when you next refinance. Barclays’ data indicates that for homeowners preparing for new mortgage deals, 45 per cent of people said keeping monthly payments low was their top priority. 3. People who are on tracker or variable rates may want to weigh up whether they would want the certainty over their payments from moving to a fixed-rate deal.
Subscribe to the YP’s Lifestyle newsletter 4. Those with a fixed-rate mortgage that is coming to an end may want to consider starting their search early to give themselves choice. People can often lock in a new rate 90 days before their end of term date with their existing lender – or up to six months out if they are looking at moving lenders.
Doing this early could help protect homeowners from further short-term market volatility while still giving flexibility if rates or circumstances change. With many lenders, people can lock in a new rate using their app, without the need to book in an appointment. 5. Homeowners may want to consider whether they want to move straight to a new fixed rate, or consider options such as moving to a tracker as they assess the market conditions, perhaps with a view to fixing at a later date. 6. Seeking advice can be important. A lender or a mortgage broker can help homeowners understand their options and choose a path that best fits their circumstances and budget. 7. Homeowners who are worried about their financial situation should talk to their existing lender.
