mortgages now pulled by lenders
Due to the (BOE) Bank of England’s
base rate fluctuating, lenders are starting to withdraw their
On Wednesday Alliance & Leicester
pulled their fixed-rate deals and the mainstream television organisation
BBC told the other mortgage lenders to follow.
When the interest rate increases lenders
normally withdraw their mortgage.
Lenders base their borrowing costs
on money market rates; this is in conjunction with the Bank Of
England’s base rate.
The UK inflation rate Wednesday period
rose to 3.1%; this figure was more than the average.
Analysts feel that in May there is
a chance of an increase on interest rates, simply due to growth
into the money market rates, this in the end increasing them to
a greater status.
It will be expensive for lenders and
they will have to coordinate these to consumers.
Roy Hardy, a mortgage broker at Cobalt
Capital, stated that, "Many lenders are currently offering
rates below the money market rate and this cannot go on forever,"
He added, "have been pushed up
because of speculation over BoE rates and this means it is more
expensive for mortgage lenders to buy money on the market".
Next week Alliance & Leicester
will introduce their fixed-rate mortgages, the deals will be competitive
and they hope homebuyers take on this new mortgage deal.
Free Mortgage Enquiry