Tweet
Mortgage lenders have pulled a number of leading fixed-rate deals from the market in a move that will prevent homebuyers protecting themselves against interest rate hikes.
News of a shock rise in inflation on Tuesday has prompted a number of lenders to withdraw or review their entire range of fixed deals in the face of a near-certain base rate increase next month, while others have taken their best products off the shelf.
The move will hit first-time buyers particularly badly - many of them rely on the security of a fixed deal as they borrow increasing amounts to get on to the property ladder.
Recent figures reveal a surge of interest from maiden buyers seeking to "lock in" a low rate for a two, three or five-year period.
But in the face of increased demand and a likely hike in the bank base rate of 0.25% - or even 0.5% - banks and building societies are taking action to re-price products.
Alliance & Leicester has pulled its entire range of fixed rate deals, with Portman Building Society and Nationwide stating it is reviewing its products.
Other lenders - including Skipton Building Society and Kent Reliance - have removed some of their leading fixed-rate deals.
Sally Lauder, of Alliance & Leicester, said: "We have had a range of highly-competitive fixed rates available for some time.
"However, unprecedented demand for these deals left us with no option but to give notice on Tuesday that we only have sufficient funds until close of business on Wednesday, based on current volumes."
Louise Cuming, head of mortgages at moneysupermarket.com, said the move would hit first-time buyers and could impact on the market as a whole.
News of a shock rise in inflation on Tuesday has prompted a number of lenders to withdraw or review their entire range of fixed deals in the face of a near-certain base rate increase next month, while others have taken their best products off the shelf.
The move will hit first-time buyers particularly badly - many of them rely on the security of a fixed deal as they borrow increasing amounts to get on to the property ladder.
Recent figures reveal a surge of interest from maiden buyers seeking to "lock in" a low rate for a two, three or five-year period.
But in the face of increased demand and a likely hike in the bank base rate of 0.25% - or even 0.5% - banks and building societies are taking action to re-price products.
Alliance & Leicester has pulled its entire range of fixed rate deals, with Portman Building Society and Nationwide stating it is reviewing its products.
Other lenders - including Skipton Building Society and Kent Reliance - have removed some of their leading fixed-rate deals.
Sally Lauder, of Alliance & Leicester, said: "We have had a range of highly-competitive fixed rates available for some time.
"However, unprecedented demand for these deals left us with no option but to give notice on Tuesday that we only have sufficient funds until close of business on Wednesday, based on current volumes."
Louise Cuming, head of mortgages at moneysupermarket.com, said the move would hit first-time buyers and could impact on the market as a whole.
