Lenders pull entire range of new mortgage deals
The effect of war in the Middle East has led to banks taking all their new home loan deals off the market.
Some lenders have pulled their entire range of new mortgage deals from the market in light of the conflict in the Gulf.
Banks have been raising their rates in the past few weeks, but now there is a new development with a number choosing to withdraw new offers completely.
Swap rates, which are a major factor in the assessment lenders make, are shooting up.
And the average mortgage rate has risen from 4.91% to 5.50%, according to Moneyfacts. Two-year fixed rates have gone up from 4.85% to 5.56%, and five-year fixed rates from 4.97% to 5.54%.
Withdrawn
Clydesdale Bank, Fleet Mortgages and Coventry have all withdrawn fixed-rate mortgages for new customers, the i paper reports.
Family Building Society took its range of fixed mortgages, including for existing customers, off the market.
The outlook for interest rates has changed drastically over the past few weeks.”
Caitlyn Eastell, Personal Finance Analyst at Moneyfacts, says: “The outlook for interest rates has changed drastically over the past few weeks, spurred by unstable swap rates caused by the conflict in the Middle East.
“As a result, the mortgage market has been extremely volatile and over 1,700 products have been withdrawn since 9 March.”
Immediate impact
And Nick Mendes, Head of Marketing at John Charcol, says: “The immediate impact is likely to be further upward pressure on fixed mortgage rates, along with more short-notice withdrawals as lenders try to keep pace with fast-moving markets.
“Mortgage pricing does not wait for the Bank of England to come to fruition. If markets keep pricing in higher rates from here, lenders are likely to continue re-pricing in advance.
“Aldermore, Metro, Gen H, TSB, Nottingham, Leeds, Shawbrook and Principality have all either raised rates, withdrawn products, or repriced parts of their range.”
