More than 400 buy-to-let mortgage deals have been quietly shelved by lenders as rates continue to rise.
The residential deals have been axed because those who hold the purse strings fear that interest rates will get higher than previously predicted.
While the Chancellor does not make the decisions, he is seemingly relaxed about higher rates because he thinks it is the only way to dampen inflation.
Buy-to-let landlords have been hit hard by other policies and the sector is really struggling.
Whether there are as many buy-to-let landlords wanting mortgages in the current climate is unlikely.
Moneyfacts, which added up the 405 missing deals, also showed rising rates for new fixed-term home loans.
The number of residential mortgage deals on sale fell by almost seven per cent in seven days – down from 5,385 on 22 May to 5,012. A reduction of nearly 400 products.
Rachel Springall, finance expert at Moneyfactscompare, said: “Borrowers searching for a new deal may well be concerned about the latest developments in the mortgage market.
“Over the past few days, we have seen a few lenders withdraw selected fixed products, with some pulling out of the market, at least temporarily.
“Product choice has started to fall, and as may be expected, average fixed mortgage rates are on the rise.
“This volatility is down to the concerns surrounding future interest rate hikes, and lenders are reassessing their propositions. Consumers looking to refinance will find rates around five per cent on average for a fixed deal, compared to around three per cent a year ago.
“It is vital borrowers seek advice to assess the situation and to find a mortgage that suits their circumstances.
“Landlords will be disappointed to see a drop in product choice and that average fixed rates are on the rise.
“The volatility surrounding interest rates towards the tail end of 2022 started to improve, but as it stands, average rates are expected to keep climbing because of the ongoing concerns over future interest rate hikes.
“Buy-to-let product choice dropped below 1,000 deals in October last year, in the aftermath of the fiscal announcement, so it will be a concerning echo of that period if choice plummets to such a low again.
“Interest rates are only part of the decision-making process when entering a buy-to-let investment, so it is always wise to seek advice to ensure it is the right time to commit to a deal.”
Mike Bradley, a senior broker at Home Owners Advice, said: “Lenders are exercising caution.
“They remember all too well what happened in 2008. An upward movement in interest rates will lead to a decrease in available deals.
“The slowing down of the mortgage market is predictable, but it isn’t dead. New deals are introduced regularly and those looking for a deal should seek out a broker to advise them.”