Figures from financial data company Moneyfacts revealed that the average two-year fixed residential mortgage rate today is 6.26%, up from 6.23% yesterday, while the typical five-year fixed residential mortgage rate today has reached  5.87% – an increase from an average rate of 5.86% yesterday.

Mortgage products continue to fall

In addition to raising rates, lenders are also pulling their mortgage products. Moneyfacts found that currently there are 4,426 residential mortgage products available. This is down by 57 products from 24 hours ago.

Buy-to-let blues

As for the buy-to-let market, the average two-year buy-to-let residential mortgage rate today is 6.51%, a rise from 6.49% from the previous day. The average five-year buy-to-let residential mortgage rate today is 6.41%, again a 0.2% increase from yesterday.

There are today currently 2,416 buy-to-let mortgage products available, a reduction from 2,459 on the previous working day.

Five tips to cope with the mortgage mayhem

However, despite such a volatile climate, Brian Murphy, the head of lending at Mortgage Advice Bureau has highlighted five ways in which worried borrowers can deal with the current malaise.

1. Don’t panic

Worried mortgage holders need not to panic despite the current headwinds in the mortgage market. Murphy noted that borrowers, whethe rthey be first-time buyers or remortgagors, should make sure to set time aside to thoroughly research the products still available, and which of these meet your needs and criteria.

If you are midway through an application process, regardless of the changes a lender may make, it’s likely they will hold the interest rate you’ve agreed to for six months.

2. Speak to a broker

In such a complex market, it’s vital that you speak to a mortgage adviser who can guide you though the mortgage journey until a deal is sealed.

Despite that fact the mortgages deals are being pulled there are still many available, and mortgage advisers often have access to exclusive deals.

3. Do your homework

Murphy also encourages potential home buyers to be ready to sift through the paperwork.

If you are caught short with this leading to a delay on submitting a mortgage application, then there is a risk that a lender could suddenly remove any deal on the table.

4. Shop around

Making sure that you shop around. This is equally important for first-time buyers and current homeowners looking to remortgage in a higher interest rate climate.

It’s also important that you consider not just the headline rate but also assess any other fees that may be involved.

5. There is always a plan B

If you find that a mortgage product has been withdrawn, then take a step back and review the other options.

Occasionally mortgage advisers will be alerted a few hours before a deal is pulled off the market, leaving a small window of opportunity to still complete your application.

Advisers can also direct you to the next course of action in the worst case scenario of having an offer pulled.

Take control of the situation

Murphy said: “Homeowners, particularly those faced with remortgaging soon, might be feeling alarmed by the recent stream of mortgage offers being pulled from the market.”

“In response to April’s and again more recently June’s less than expected drop in inflation, we’ve witnessed lenders suddenly pulling various deals one after the other like dominoes.

“Making top story headline news, many homeowners will find themselves worrying about the increasingly limited availability of products on the mortgage market, and what to do if their mortgage offer disappears.

“Whilst you may feel vulnerable and powerless, there are some things that everyone on the hunt for a mortgage deal should do to make them better equipped in the uncertain climate.”