40% of mortgage deals pulled since mini-budget; financial markets in turmoil –
Mortgage chaos: 41% of deals pulled since mini-budget
Forty-one per cent of mortgage products have been taken off the market since Kwasi Kwarteng’s mini-budget last Friday, which sparked panic in financial markets, and expectations of a jump in the Bank of England’s base rate to 6% by next summer.
A further 321 products were withdrawn overnight, on top of the record 935 pulled the day before, according to Moneyfacts.
Between Friday and today a total of 1,621 residential mortgage products have been withdrawn leaving 2,340 on sale today.
According to Defaqto, more than 20 providers have withdrawn their entire fixed rate mortgage range.
Katie Brain of Defaqto says:
What products are left are changing at a rapid pace, lenders seem to be really unsure of what to offer and what price with so many changes in the money markets at the moment.
Consumer finance expert Martin Lewis has tweeted:
For every £100,000 of mortgage, you'll pay roughly £600 a year more for each 1% pt interest rate rise.
Top fixes today are 3%ish more than a year ago (so £1,800 per £100,000).
If UK rates rise to 6%, as some predict mortgages'd likely rise more than another 3% again
BUT…
— Martin Lewis (@MartinSLewis) September 28, 2022
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For every £100,000 of mortgage, you’ll pay roughly £600 a year more for each 1% pt interest rate rise.
Top fixes today are 3%ish more than a year ago (so £1,800 per £100,000).
If UK rates rise to 6%, as some predict mortgages’d likely rise more than another 3% again
BUT…
— Martin Lewis (@MartinSLewis) September 28, 2022
That assumes people will be accepted for the top fixes.
At those rates of interest though many more will likely fail the affordability checks – which means likely sticking with their own lenders (poss costlier) fix or moving onto standard variable rates, which are even higher.
— Martin Lewis (@MartinSLewis) September 28, 2022
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That assumes people will be accepted for the top fixes.
At those rates of interest though many more will likely fail the affordability checks – which means likely sticking with their own lenders (poss costlier) fix or moving onto standard variable rates, which are even higher.
— Martin Lewis (@MartinSLewis) September 28, 2022
Liz Truss was asked about mortgages this morning.
An awkward moment.
BBC Stoke’s @johnacres48 asks Liz Truss about mortgages dwarfing any savings her govt may have made people.
“You’ve done this yourself. This isn’t to do with external forces. This is about your mini budget and what it’s done to the economy”.
Truss: “…….” https://t.co/xiw7nRSsCC
— Pippa Crerar (@PippaCrerar) September 29,…
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