With likely increases to the Bank of England base rate on the horizon, many mortgage lenders are
moving to withdraw their best fixed rate mortgage deals, replacing them with more expensive
products.
Several lenders have recently increased the price of their fixed rate mortgages, and even some
tracker deals are seeing hikes.
The central bank’s Monetary Policy Committee (MPC) has held the base rate at a record low of 0.5
per cent since March 2009. However, with increasing inflationary pressures now set to push a series
of base rate increases starting from May, there has been a quick response from lenders in re-pricing
their range of mortgage deals.
Skipton Building Society recently withdrew several of its best three and five-year fixed rate
mortgages. Santander, Woolwich and Northern Rock also took action last week to increase the cost
of their fixed deals.
Natwest have followed suit – with their market-leading 3.75 per cent fixed rate withdrawn and
replaced with a 4.35 per cent deal.
Market experts and mortgage brokers are warning those who might be looking to secure a fixed rate
– with their current lender or through remortgaging – to act quickly due to the current volatility of
the mortgage market.
Aaron Strutt of Trinity Financial Group said: “We are now at the stage where lenders are saying that
rates might not be available this time tomorrow because the majority of banks do not give notice
when they are withdrawing their rates.”
