Mortgage lenders have pulled a number of leading fixed-rate deals from the market in a move that will prevent homebuyers protecting themselves against further interest rate rises.
Analysis from financial information website Moneyfacts.co.uk found that since the Bank of England upped the base rate last week by 0.25%, 12 banks and building societies have scrapped fixed-rate deals.
Last Thursday's surprise decision to raise the interest rate to 5.25% was quickly followed by announcements by major lenders that they would increase standard variable rates and tracker mortgages in accordance with the decision.
But in a further move that will disadvantage homebuyers, a number of building societies and banks have also withdrawn either selected fixed-rate deals or their entire fixed-rate range.
Fixed deals are popular with mortgagors seeking to "lock in" low rates for a set period of time, usually for two, three or five years.
Amongst the deals going are two "best buy" rates from Egg and the Portman Building Society. Portman pulled all its fixed deals on Monday as part of a repricing exercise.
Its new range - which will have increased rates as a result of the base rate change - is set to be launched, a spokeswoman for the building society said.
Commenting on lenders' decision to pull fixed rate mortgages from the market, Julia Harris, mortgage analyst at Monyfacts.co.uk, said: "So has there been a flurry of customers snapping up these 'cheap' deals, causing the societies to exhaust their tranches of fixed rate funds? Or could it be an opportunity to re-price, allowing a larger profit margin?
"With a further rate rise still on the cards for 2007, those customers on a tight budget will need to act quickly before more of the current best buy fixed-rate deals vanish."
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She added that "cheap" deals with short-term fixed rates of under 5% could vanish from the market in the coming months or that alternatively lenders may pass the cost on to consumers through higher arrangement or product fees.
