Leading mortgage lenders are pulling fixed rate mortgages out of their product range 'at a rate of knots'.
Quite simply, the rates that they can borrow money at to lend out have changed and that margin received at what they are paying on debt versus what they charge has narrowed i.e. they are paying more to borrow money themselves.
Our view
When lenders start pulling fixed rates, particularly when rates are so low as they are now, expect rate increases. Don't just expect fixed rate deals to be re-positioned later this month, also expect other rates to increase.
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