The re-priced deals have tended to originate from major banks who want relatively low-risk borrowers. It's possible that homeowners who have high debt levels, or who have missed payments on credit, may find their choice more limited in the short-term.
Mortgage rates have been rising ever since the Bank of EnglandBank of England began a series of seven consecutive rises in the Bank rate, the benchmark figure of interest rates. After the mini-budget prompted widespread expectation of a higher and faster jump in the Bank rate in the coming months, rates went up.
Roughly 100,000 people a month come to the end of a fixed deal and often remortgage, while first-time buyers also sign up to fixed deals. The cost of 1.5 million homeowners on variable or tracker deals is going to go up in direct response to a Bank rate rise.
A homeowner borrowing 200,000 on a 30 year mortgage could have been looking at a rate of 3.5% and a monthly repayment of 898 just over a week ago. There are more likely to be faced with a 5.5% rate and a monthly repayment of 1,135.
There is uncertainty about the longer-term trend for mortgage rates. People will have to consider how much money they can borrow, and what lenders will judge them to be able to afford.
Moneyfacts said that there were 3,961 deals available on the morning of the mini-budget compared to 2,262 at the beginning of the week, a 43% fall. At the beginning of the epidemic, products were withdrawn quickly, but not at such a level.