The news that some mortgage lenders have halted new deals has concerned many mortgage borrowers.

In fact, searches for ‘remortgage’ exploded 215% on Tuesday, according to Loan Corp, after a raft of lenders announced product withdrawals amid market uncertainty. That’s double the average volume over the week, and searches for ‘mortgage help’ have also rocketed 201% in the past week.

Karen Noye, mortgage expert at Quilter, said: “Lenders’ systems have been crashing with long virtual queues for borrowers and advisers trying to get them or their clients a deal at current rates.

“Rates that were available one hour are gone the next which is making it a tricky time for buyers.”

What’s happening?

There are still thousands of mortgages available to new borrowers, but the cost of borrowing for lenders is rising quickly.

Some – including the UK’s largest lender Halifax – have decided to pull some mortgage products to give them time to regroup while the money markets are so volatile, and to reprice deals according to the new borrowing costs.

This financial volatility was sparked by the government’s mini-budget last week, which resulted in the value of the pound plummetting in response to the Chancellor’s pledges. And the Bank of England has already strongly hinted that it will need to hike its Base Rate yet again (following its seven consecutive increases since December).

What does it mean for borrowers?

Don’t panic. If your mortgage is coming up for renewal you should still be able to remortgage. If you’re a first-time buyer or home mover you should still be able to secure a new deal from the thousands available.

But you should expect to pay more and the process might take longer, as lenders are currently so busy.

Rates have risen hugely in 2022, and are likely to be higher than when you last took out a mortgage, which will usually be two or five years ago, depending on your product.

According to Hargreaves Lansdown, someone who fixed for 2% two years ago could be looking at a remortgage rate at 5% by next week. If they had a £200,000 mortgage over 25 years, that’s a rise in monthly payments from £848 to £1,169 – or £321.

What can you do?

If you do nothing you will revert to your lender’s default rate – known as its Standard Variable Rate – when your fixed rate ends. This is very likely to be much more expensive than what you’ve been paying.

It’s recommended that you switch to a new deal, either with your existing lender (called a product transfer) or with a new lender (called a remortgage). Either way, you can still expect to pay higher interest rates than you’ve been used to.

You can secure a new deal ahead of the end of your fixed rate product – usally four months with a product transfer and six months ahead for a remortgage. So it’s worth checking now exactly when your current deal is up.

How to get a new deal

To get a new mortgage, you can speak to your existing lender or go to a mortgage broker.

Brokers are experts in the market and will look at your needs and circumstances before advising you on the best deal from across the market, including those on offer from your existing lender.

As well as having up to date knowledge on products, they understand which lenders are currently operating a good service and which are taking longer to make mortgage offers.

They will work around your needs, advising you in person or over the phone, on your lunch hour or in the evening.

Finally, they will help you with the form-filling and chase the lender on your behalf, taking away much of the hassle of securing a mortgage deal.