Both Halifax for Intermediaries and The Nottingham have withdrawn selected products as lenders reprice with the UK economy in turmoil.
As of Wednesday 28th September Halifax Intermediaries made changes to a number of products including its new build, shared equity and larger loans ranges. :
Meanwhile, The Nottingham for Intermediaries is repricing its residential, buy-to-let, holiday let, RIO and self build products. It is also withdrawing 14 additional products.
Lewis Shaw, founder and mortgage expert at Shaw Financial Services, said he thinks the “writing is on the wall” for the economy.
“And so it begins,” he said. “Mortgage lenders are already sending rate changes out, hiking fixed deals, despite the flurry of moves last week.
“We’ve even just been told of the first 6%+ clean credit mortgage rate, which is the highest rate for a mainstream lender I’ve seen in over seven years.
“Is this the sign they know something we don’t? The writing is on the wall. Markets have shown what they think of Kami-Kwasi’s fiscal event.
“UK five year bond yields are above those of Italy and Greece, and the cost of insuring the UK against a default is rising. This will make HM Treasury hot under the collar.
“The Bank of England will be forced to step in with another base rate hike to try and calm spooked markets. That will feed into higher mortgage rates and, as always, it’ll be the taxpayer left carrying the can. In the history of poor economic policies, last week’s fiscal event will fly into the Top 10.”
And indeed it does look like the Bank of England will have to step in to try and halt the run on the pound.
Anil Mistry, director and mortgage broker, RNR Mortgage Solutions, reckons more lenders will follow the Halifax’s lead and reprice once more.
“This is not a surprise move from the Halifax,” said Mistry. “Other lenders will almost certainly follow suit and wait to see what move the Bank of England’s Monetary Policy Committee takes prior to bringing back a full range of products.
“Right now, the interest rate arena is on red alert and all eyes are on the Bank of England.”
And Imran Hussain, director at Harmony Financial Services agrees that more lenders will amend their ranges.
He added: “Smash, bang and wallop, but sadly this is just the start. Many lenders will follow suit given that another rate rise, potentially this week, is looking imminent.
“Products will get chopped and changed quicker than we can all keep up. The mortgage market was already hectic and now it’s going haywire.
“Swap rates for two-year products are now above 5%. Compared to where we were a year or so ago, that’s frankly insane.”
