Where have all the fixed rates gone?
Julia Harris, Mortgage Analyst at Moneyfacts.co.uk comments:
“The shock announcement of last week’s base rate increase may have taken lenders by surprise, with most industry experts expecting the rise to occur in February or March. Some lenders, however, have been quick off the mark, with several already announcing increases to their SVRs and revised tracker rates.
“However there is a twist in the tail this time round. So far 12 lenders, predominately building societies have withdrawn either selected fixed rates or their entire fixed rate range, without launching replacement products.
Mortgage Lender |
wef |
Rates withdrawn |
Barnsley BS |
11.1.07 |
5.29% to 31.1.12 |
Cumberland BS |
12.1.07 |
All fixed rates |
Egg (Best Buy Rate) |
15.1.07 |
4.74% for 2 years |
Kent Reliance BS |
12.1.07 |
3, 5, 10 year rates |
Mansfield BS |
12.1.07 |
All fixed rates |
Newbury BS |
11.1.07 |
5.47% to 31.12.11 |
Portman BS (Best Buy Rates) |
15.1.07 |
All fixed rates |
Progressive BS |
12.1.07 |
All fixed rates |
Saffron BS |
11.1.07 |
5.85% to 30.11.09 |
Skipton BS |
12.1.07 |
All fixed rates |
Stroud & Swindon BS |
12.1.07 |
5.15% to 28.2.22 |
Tipton & Coseley BS |
12.1.07 |
All fixed rates |
“So has there been a flurry of customers snapping up these ‘cheap’ deals, causing the societies to exhaust their tranches of fixed rate funds? Or could it be an opportunity to reprice, allowing a larger profit margin?
“With a further rate rise still on the cards for 2007, those consumers on a tight budget will need to act quickly before more of the current best buy fixed rate deals vanish.
“The next few months will be an interesting time in the mortgage market. We could see short term fixed rates of under 5% vanish, or alternatively see associated arrangement/product fees increased in an attempt to keep them low, as lenders are forced to buy their funds at the now much higher rate offered by the money markets.”
NOTES TO EDITORS:
Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.
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