Hopes of mortgage rates steadily easing have "collapsed", with at least 530 homeowner mortgage deals having vanished from the market since Monday, according to a financial information website.

Moneyfacts said the number of mortgages disappearing from the market since then represents about 7.5% of deals. Some average mortgage rates have already broken through the 5% mark amid changing financial markets, and Moneyfacts said earlier this week that mortgage deals have been withdrawn at the fastest pace since the 2022 mini-budget.

Moneyfacts said on Friday that the average two-year homeowner mortgage rate on the market was 5.10% - up from 4.87% on Monday. The rate is at its highest since July 2025.

The average five-year homeowner mortgage rate on Friday was 5.19%. This was up from 4.98% on Monday and the highest since April 2025.

Adam French, head of consumer finance at Moneyfacts, said even the cheapest rates are shooting higher, adding: "It's unwelcome news for borrowers, as hopes of steadily falling mortgage rates have collapsed and given way to a much more uncertain outlook.

"The destination is now heavily dependent on how global markets and inflation expectations evolve in response to the conflict in the Middle East."

Markets were sent into turmoil after the US and Israel launched wide-ranging strikes on Iran on February 28.

Iran responded with its own attacks on Israel and US-allied states in the Gulf, forcing the closure of the Strait of Hormuz, which accounts for around 20% of global oil and gas supply.

This has prompted some of the largest oil and gas producers to suspend production, driving oil prices to as high as $120 a barrel on Monday.

Swap rates - the interest rates lenders pay to financial institutions to secure fixed-rate funds - are nearly as high as they were a year ago. On Thursday, the five-year swap rate was 3.918%, up from 3.787% on Wednesday, and up from 3.647% a month ago. One year ago, it was 3.931%.

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