Some 150 mortgage deals disappeared from the market on Wednesday, following this morning’s inflation reading from the Office for National Statistics.
Lenders quickened the pace in pulling deals from the market after the surprise inflation figures showed the UK’s consumer price index rose 8.7% in June, failing to fall from May.
Analysts had expected the figure to be lower, leading to increased anticipation that the Bank of England will lift base interest for the thirteenth time in a row on Thursday.
Some 143 deals had been pulled by 4pm GMT on Wednesday, after the ONS figures came out in the morning, according to MortgageShop.
Average interest rates on two-year fixed mortgages had jumped from 6.07% to 6.15% meanwhile, as lenders look to act before the Bank of England’s rate call on Thursday.
Gilt yields, which banks use to price mortgages, also jumped to 5.06% on Wednesday, near a 15-year high recorded on Monday.
“This morning’s inflation figures will have done nothing to calm the markets,” The Mortgage Stop director Rohit Kohli said.
Analysts are now expecting a 50 basis point rise to UK base inflation on Thursday, bringing the figure to 5% and likely prompting mortgage price hikes for hundreds of thousands of people.