Monday marked another frantic day for UK mortgage lenders, as TSB Banking Group (LSE:TSB) became the latest to pull deals while interest rates on others soared.
Amid the chaos caused by the threat of a further Bank of England interest rate hike later this week, average two-year fixed mortgage rates jumped above 6%, while the number of deals on offer had fallen by 581 since early May to 5,264, according to Moneyfacts.
Prime Minister Rishi Sunak dismissed any speculation that the government would boost support for homeowners struggling with the higher rates on Monday morning, instead reiterating plans to half inflation.
Lenders have referenced 15-year highs in gilt yields, which hit 5% for the first time since 2008 early on in the day, suggesting the jump will give the BoE another reason to hike rates on Thursday.
All the while, concern is growing that interest rate hikes on mortgage deals are not coinciding with increases in savings account offerings, leading to claims that UK banks could be profiteering as margins grow.