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Mortgage lenders pull deals at fastest pace since mini-Budget

Mortgage lenders are pulling deals at the fastest rate since Liz Truss infamous mini-Budget amid growing agitation around the economic consequences of the Iran war. Nearly 500 homeowner mortgages have disappeared from the market in mere days, according to finanical information platform Moneyfacts, as average mortgage rates breeze past the five per cent mark. Moneyfacts [...]

Mar 11, 2026 &03121111202631; 13:12 UTC www.cityam.com Trending 4/5

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Negative for markets

Sentiment score: -75/100

High impact Immediate effect (hours)

WHAT THIS MEANS

UK mortgage lenders are rapidly withdrawing deals at the fastest pace since the 2022 mini-Budget crisis, with nearly 500 homeowner mortgages pulled from the market in days as average rates exceed 5%. This reflects growing economic uncertainty stemming from geopolitical tensions and rising interest rate pressures.

AI CONFIDENCE

85% Very high

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

↓

British Pound / US Dollar

GBPUSDCurrency

Expected to decline

UK economic uncertainty and mortgage market stress typically weaken sterling as investors reassess growth prospects

↓

FTSE 100 (London)

^FTSEIndex

Expected to decline

UK financial sector and housing-related stocks face headwinds from mortgage market contraction and rising rates

⇅

Euro Stoxx 50

^STOXX50EIndex

High volatility expected

European indices sensitive to geopolitical tensions (Iran war concerns) and broader economic slowdown signals

↑

Oil (WTI Crude)

CL=FCommodity

Expected to rise

Iran war concerns typically support crude oil prices due to Middle East supply risk premium

PRICE HISTORY

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⚡ SUGGESTED ACTION

Short GBP against safe-haven currencies (JPY, CHF) and reduce exposure to UK financial/housing stocks. Consider hedging with long positions in crude oil and defensive sectors given dual headwinds from mortgage market stress and geopolitical tensions.

KEY SIGNALS

Mortgage deal withdrawal at crisis-level paceAverage mortgage rates above 5%Geopolitical risk premium (Iran tensions)Lender risk aversion increasingHousing market stress indicators

SECTORS INVOLVED

Financial ServicesReal EstateBankingConsumer Discretionary

Analysis generated on Mar 12, 2026 at 01:18 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by City AM. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Mortgage lenders pull deals at fastest pace since mini-Budget

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