Santander Withdraws From Mortgage Lending For New Customers. Lenders Pull 300 Deals In 24 hours
Santander became the latest high street bank to withdraw mortgage products for new customers. As a result, lenders pull nearly 300 mortgage deals in the past 24 hours by banks and building groups.
Nationwide Building Society also increased the interest rates charged across its whole range of mortgages. However, the British institution said that it would not be withdrawing loans made to existing customers. The building society is now charging 5.19% for a 5-year fixed rate loans. The same loan came with a rate of 0.9% in December.
Santander’s decision to shut the door on new business was a response to struggling lenders dealing with rising rates.
Santander emailed brokers to say it is temporarily removing all 60% and 85% LTV products. The bank also said that the majority of loans would be going up by between 0.3 and 0.4 per cent. The change came into effect at 10pm yesterday. However, customers who had already applied for mortgage will not be affected.
The building society said it is increasing two, three, five and ten-year fixed rates by between 0.90% and 1.20%.
The lender’s rates now start at 4.89% for a 10-year fixed rate mortgage with a LTV of 60% or below.
Santander And Other UK Lenders Are Feeling The Pain Of Rising Rates And Inflation
This came a day after Halifax, the UK’s biggest lender, said it was removing all products that come with a fee as a result of “significant changes” to the market amid warnings of skyrocketing interest rates.
As of Tuesday, Santander had 3,596 residential mortgage programs available for their customers. This is 284 fewer than before the British Pound took a beating on Monday morning. At the end of 2021, prospective British homeowners had 5,315 Santander products to choose from.
The financial markets are anticipating that the Bank of England’s base rate could rise as high as 6% by March 2023. The hope is that it will curb inflation in the UK.
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