Best fixed-rate mortgages axed by Finance News Bulletin
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Published: 17/01/07
Homeowners facing increased mortgage repayments following the shock have an account rate rise have been strike by a double whammy - with lenders pulling the plug on the best set ratesSo far, 12 lenders – mostly building societies - have either axed top fixed rate deals or separate all their fixed rates from proffer without giving any replacements, according to financial data expert Moneyfactscouk
Lenders' motives in halting the sale of their best fixed rate deals so quickly have been questioned by Moneyfacts, which has suggested they are seeking to profit from the chance to raise ratesJulia Harris, mortgage forecaster at the group, supposed: 'So has there been a flurry of customers snapping up these 'cheap' deals, causing the societies to tire out their tranches of fixed rate money Or could it be an opportunity to reprice, allowing a larger income margin'With a further speed rise still on the cards for 2007, those consumers on a tight budget will need to do something quickly before more of the current most excellent buy fixed rate deals vanish
'The next few months will be an interesting time in the mortgage market We could see short term set rates of under 5% vanish, or alternatively see associated arrangement/product fees greater than before in an attempt to keep them low, as lenders are forced to pay money for their funds at the now much higher speed offered by the money markets'The biggest name to pull the socket on fixed rates is Portman Building Society, which according to Moneyfacts halted the sale of its entire variety yesterday, awaiting new rates Portman was offering two of the better deals on the market, a 4
83% two-year set rate with a £999 fee and a 499% two-year fixed speed with a £499 feeInternet bank Egg axed its most excellent buy 474% two-year set rate, while Kent Reliance stopped its three, five and ten-year fixes
Mortgage experts have warned those looking for a novel homeloan to act quickly if they want the best dealsLouise Cuming, head of mortgages at Moneysupermarketcom, supposed: 'My recommendation, if you will not incur a penalty to switch mortgage goods, is to shop around urgently, especially if you are paying the lender's standard changeable rate of around seven per cent In the first example borrowers should approach their existing lender to see if they can transfer onto a more competitive rate
'Where likely, those with a mortgage likely to be pretentious by this rate rise and who fear they will struggle with any further increases in spending should consider remortgaging to a improved or fixed rate product'• Barnsley BS, Cumberland BS, Egg, Kent Reliance, Mansfield BS, Newbury BS, Portman BS, Progressive BS, Saffron BS, Skipton BS, Stroud & Swindon BS, Tipton & Coseley BSTo save lenders a group of time and effort (and misplaced income) they should take into account the next speed rise before setting the price of their 'new' fixed rate offerings By the occasion the paperwork's done, the flyers have gone out, and the advertisement's inserted for this round, base speed will be 5
50% That said, they might as well price-in a 6% bottom rate, as that is where we are heading
and soonSelect a loan term 12 months (1 year) 24 months (2 natural life 36 months (3 years) 48 months (4 years) 60 months (5 natural life 72 months (6 natural life 84 months (7 natural life 96 months (8 natural life 108 months (9 natural life 120 months (10 years)Please choose a type of insurance Life insurance Home and contents Car Breakdown services physical condition - medical physical condition - dental
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