Mortgage deals pulled by lenders

New research has found lenders are pulling their record low mortgage deals from the market.

Information from Moneyfacts.co.uk said the trend for cheaper loans is a thing of the past as lenders prepare for interest rate rises by hiking up their rates.

Charlotte Nelson, finance expert at Moneyfacts.co.uk, said while competition remained high in the market it was clear that record low rates were starting to disappear.

“Speculation of a bank rate rise has affected wholesale costs, so providers have had little option but to raise their rates,” said Charlotte.

“Five-year fixed rates have been particularly affected as the likelihood of a bank rate rise within the next five years is high.”

65% loan to value five-year fixed rate mortgages which used to be at 2.14% have been replaced by rates of 2.34%.

“Borrowers might feel as though they blinked and missed the lowest rates on the market as some deals only lasted a couple of months before they were withdrawn,” added Charlotte.

“For this reason, borrowers need to galvanize themselves now if they want to make the best of the low rates that are still around.”