Lenders pull mortgage products – call us now for mortgage advice

Wednesday 28 September, 2022

Mortgage lenders are continuing to pull products because of financial uncertainty. According to the Guardian approximately 300 mortgage deals were pulled in 24 hours by building societies and banks, because of the possibility interest rates could rise due to the pound’s fall in currency markets.

Which mortgage lenders have pulled products?

Some of the biggest lenders including Santander and HSBC have pulled mortgage products. Halifax, Virgin Money, and Skipton Building Society also pulled fixed rate deals for new customers. Other smaller banks including Clydesdale Bank, Bank of Ireland and Post Office Money have also withdrawn products.

Why are lenders pulling mortgage products?

On 23^rd September the new Chancellor announced a series of tax cuts which will be paid for by more Government borrowing. Markets reacted badly to this announcement which triggered a wave of UK asset sales. On Monday 26^th September the pound weakened sharply reaching a low of $1.03 against the US dollar.

Amy Kadir, mortgage broker St Albans, Hertfordshire said: 

‘We have seen many lenders pull mortgage products over the last few days as they struggle to get to terms with the financial uncertainty. We have experienced nothing on this scale since the 2008 financial crisis.  For the lenders fixed rate deals are based on interest rate expectations so when there is so much uncertainty in the financial markets and forecasters are suggesting interest rates could go as high as 5% or even 6% it is very difficult for the lenders to price these fixed rate products. We have already heard from a Bank of England spokesman yesterday that the Bank won’t hesitate to put up interest rates if necessary.  Given this uncertainty the lenders continue to pull fixed rate mortgage products.’

Amy Kadir, member of the St Albans mortgage team continued: 

‘We have clients who are currently trying to remortgage or get a fixed rate mortgage deal.  We are speaking to lenders to find out what we can do. If you are due to remortgage soon or are considering fixing your mortgage, please contact us as soon as possible on 01727 845500 for mortgage advice. If interest rates are raised your mortgage will cost more to service whether you are on a tracker mortgage, variable rate mortgage or a fixed rate mortgage. Many of our clients are on fixed rate mortgages and they are shocked when their mortgage deal comes up for renewal and they consider the cost of any new mortgage products.  Remember if you get a mortgage deal the banks and building societies have historically honoured this mortgage deal for up to six months so we recommend you call us first before you go house hunting, and call us early if your mortgage deal is coming up for renewal.

In Summary

Act now and call us on 01727 845500 for mortgage advice if you have a fixed rate deal that is coming up for renewal, you are a first-time buyer or need a commercial mortgage.

Your home may be repossessed if you do not keep up repayments on your mortgage.

 

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