Hundreds of mortgage deals have vanished from the market as a fall in the value of the value of the pound led to forecast of highter interest rates.

Ten lenders including Clydesdale Bank and the Scottish Building Society have said they are pulling and tweaking deals.

Virgin Money and Skipton Building Society have halted mortgage offers for new customers, but said submitted applications would still be processed.

Halifax said it would stop mortgages with product fees.

Others include Leek United Building Society, Nottingham Building Society, Bank of Ireland, Paragon Bank and the Darlington Building Society.

Analysis of the market by has found that hundreds of mortage deals have been axed since the chancellors mini-budget on Friday.

On Friday there were 3,961 residential mortgage products were available.

By Monday this week, the total had fallen to 3,880 and by Tuesday, this had shrunk further to 3,596 deals.

That is 1,719 fewer than were available at the start of December 2021 (5,315) before the first of the series of Bank of England base rate increases.

The pound plunged against the dollar on Monday after Chancellor Kwasi Kwarteng pledged more tax cuts, on top of Friday's mini-budget when he announced the biggest tax cuts for 50 years.

The pound has since plunged to its lowest level against the dollar since decimalisation in 1971.

The pound stabilised at $1.08 after hitting a record low of $1.03 on Monday.

The Bank of England said on Monday it would "not hesitate" to hike interest rates after the pound hit record lows.

the worry lies with the rising base rate, which in turn pushes up home loan costs.

Some experts think Bank of England base rates could rise from 2.25% to 6% next year, as it battles against high inflation - currently 10.1%.

Glasgow Times: Clydesdale and Yorkshire Bank has pressed ahead with its �1.6billion flotation.

UK interest rates were increased to 2.25% last week - the seventh time in a row the Bank of England has raised rates in an attempt to get control over rising prices.

Interest rates have been rising since last December as inflation has soared to its worst level in four decades.

The mortgage choice remains significantly higher than it was during the depths of the coronavirus pandemic, which also caused significant economic uncertainty.

One low point was in October 2020, when 2,259 mortgage deals were available.

During the pandemic, low-deposit mortgage deals, often used by first-time buyers, were particularly at risk of being pulled as lenders were concerned about “riskier” lending.

Rachel Springall, a finance expert at, said: “The upheaval in the mortgage market may cause frustration amongst both borrowers and brokers as they see deals disappear overnight.

“The market remains considerably volatile so it’s vital consumers seek independent advice to assess what their best options are right now.”

Glasgow Times: File photo dated 19/11/12 of a branch of Virgin Money, as Virgin Money pushed back its plans for a £2 billion flotation after the shares offer was hit by recent turbulent market conditions. PRESS ASSOCIATION Photo. Issue date: Friday October 17, 2014.

Virgin Money, which operates Clydesdale Bank said: “Given market conditions we have temporarily withdrawn Virgin Money mortgage products for new business customers.

“Existing applications already submitted will be processed as normal and we’ll continue to offer our product transfer range for existing customers.

“We expect to launch a new product range later this week.”

Kwasi Kwarteng has previously brushed off questions about the markets’ reaction to his mini-budget – which outlined the biggest programme of tax cuts for 50 years.

Mr Kwarteng on Sunday claimed the cuts “favour people right across the income scale” amid accusations they mainly help the rich.

Some 8.3 million people have mortgages in the UK, according to UK Finance, the trade association.