“It will be incredibly frustrating for borrowers to see rates rise back up to where they were a month ago. The positive progress over recent weeks now feels all but lost, but what the market needs is a period of stability,” said Rachel Springall, finance expert at Moneyfacts.
She said 100 deals had been pulled temporarily as lenders reconsider their pricing plans.
She suggested that anyone who needed to remortgage this year could lock in a new deal now with their existing lender ahead of time, but should also seek help from a broker to see whether there are better deals elsewhere.
“Brokers are an anchor during turbulent times as they can help borrowers keep abreast of changes and be there step by step when going through a mortgage application,” she said.
Borrowers had been heartened by the regular falls in mortgage rates during June and early July, but brokers say the latest changes are evidence of the uncertainty in the sector.
“Any borrower hoping for rate cuts to become an ongoing trend will need to rethink,” said David Hollingworth, of L&C Mortgages.
“Momentum has performed an about turn and now clearly shifted to fixed rates rising in the near term at least.”