The Moneyfacts.co.uk has today reported that nearly 600 mortgage products have been withdrawn by wary lenders in the aftermath of the nationalisation of the Bradford & Bingley.

According to the financial website, at the start of the week there were 3,983 residential and buy to let mortgages on the market. However, by Friday's close this had fallen to a mere 3,402, the lowest number  but this had fallen to 3,402 by the end of business on Friday, the lowest number ever recorded by Moneyfacts.

Michelle Slade, at MoneyFacts, said: "I am shocked by how quickly rates were pulled following the nationalisation of Bradford & Bingley on Monday.

"For the last couple of months rates have been slowly improving and more lenders have returned to the market. It is quite alarming how quickly the market had deteriorated once again."

Fixed rates are also rising, with Moneyfacts reporting that the average a two-year fixed rate deal  has increased from 6.26 per cent to 6.33 per cent.