Growing fears over persistent inflation in the UK economy led to further turmoil in the mortgage market yesterday, with lenders pulling further products, and average rates reaching their highest point since the turn of the year.

Data from financial information provider Moneyfacts.co.uk showed that lenders pulled a total of 25 two-year and five-year fixed rate deals on Tuesday, and continued to increase rates, with Coventry Building Society this morning the latest lender to continue the trend by announcing further rate increases.

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