Tensions in the Middle East have unsettled mortgage markets, with lenders rapidly pulling and repricing deals.

The typical shelf-life of a mortgage has fallen sharply from 33 days at the start of February to just eight days, the lowest level recorded since tracking began in 2011, according to Moneyfacts. The number of available deals has also dropped by 1,283 in March to 6,201 — a 17% decline and the lowest level in two years.

Borrowers with smaller deposits have been hit hardest. Nearly 400 deals for those with 5% or 10% deposits have disappeared, significantly reducing options for first-time buyers as lenders pull back from higher-risk lending.

Rachel Springall, finance expert at Moneyfacts, said: “The unrest in the Middle East caused mortgage mayhem, with lenders rushing to pull products from sale and reprice at higher rates throughout March.” She added that the market has seen its “worst upheaval… since the mini-Budget,” describing it as “awful news for first-time buyers.”

Mortgage rates have also risen during this period. Average two-year fixes have climbed from 4.83% at the start of March to around 5.89%, while five-year deals have increased from 4.95% to 5.77%. However, there are early signs the market may be stabilising, with rate rises slowing in recent days and some lenders beginning to make small reductions as expectations of easing geopolitical tensions improve.

Below is a selection of this month’s best buys from Moneyfacts.co.uk (remortgages):

Two-year fixed rates: 4.90% from first Nationwide BS. Product fee £999. 60% LTV.
4.91% from Yorkshire BS. Product fee £995. 60% LTV.

Five-year fixed rates: 4.80% Nationwide BS. Product fee £999. 60% LTV.
4.80% from Yorkshire BS. Product fee £995. 60% LTV

Discounted variable: 4.09% From Ecology BS for 2 years. Product fee £0. 80% LTV.br> 4.24% From Bath BS For 2 years. Product fee £999. 80% LTV.

BUY-TO-LET (BTL)

Best two-year fixed rate: 5.20% from Yorkshire BS. Product fee £995. 90% LTV.

Five-year fixed rate: 5.16% from Yorkshire BS. Product fee £995. 90% LTV.

Best Discounted variable: 4.49% For 2 years. From Newbury BS. Arrangement £1,499. 90% LTV.

The information we provide is our personal opinion and should not be relied upon for financial advice. Should you need financial advice or guidance please contact an appropriate professional.