Moneyfacts, the respected independent mortgage market monitor, is warning that lenders have been withdrawing buy to let fixed deals.
Within the buy to let mortgage sector Precise Mortgages, Kensington, Kent Reliance and Marsden Building Society have pulled selected fixed mortgage products over the past few days.
Aldermore, Bank of Ireland UK, CHL Mortgages, Fleet Mortgages, Foundation Home Loans and The Mortgage Lender have pulled their entire fixed rate range.
And since the start of last week, the number of buy to let mortgages has fallen from 2,748 deals to 2,343. The average rate on a two- and five-year fixed buy to let mortgage has risen to 5.61 and 5.52 per cent respectively since the start of this month.
It’s a similar story with mortgages for owner occupier buyers.
The Bank of Ireland UK, Bath Building Society, Furness Building Society, Newcastle Building Society, Halifax, Hinckley & Rugby Building Society, Kensington, LendInvest, Marsden Building Society, MPowered Mortgages, Principality Building Society, Scottish Building Society and Vernon Building Society pulled selected fixed mortgage products over the past few days.
Aldermore, Foundation Home Loans and Tipton & Coseley Building Society have pulled their entire fixed rate range.
Since the start of last week, the number of mortgages has fallen from 5,385 deals to 5,012.
And the average rate on a two- and five-year fixed mortgage has risen to 5.38 and 5.05 per cent respectively since the start of this month.
“Borrowers searching for a new deal may well be concerned about the latest developments in the mortgage market. Over the past few days, we have seen a few lenders withdraw selected fixed products, with some pulling out of the market, at least temporarily” explains Rachel Springall, finance expert at Moneyfacts.
“Product choice has started to fall, and as may be expected, average fixed mortgage rates are on the rise. This volatility is down to the concerns surrounding future interest rate hikes, and lenders are reassessing their propositions.
“Consumers looking to refinance will find rates around 5.0 per cent on average for a fixed deal, compared to around 3.0 per cent a year ago. It is vital borrowers seek advice to assess the situation and to find a mortgage that suits their circumstances.”
