Mortgage Products Pulled as a result of credit crunch
More and more mortgage products are being withdrawn from the market by lenders due to the ongoing credit squeeze.Over 2000 products have disappeared from the marketplace over the last month, causing real difficulties in people securing good rates on mortgages or remortgages. First Direct and The Co-operative Bank have been forced to withdraw mortgage offers to new customers in response to a massive increase in demand due to the shortage of products. Both banks advise that they will resume business as normal once they have cleared a backlog in applications.
Other lenders will increase rates in an attempt to deter new applications as their access to funds become restricted.
Millions of Britons will face significantly higher mortgage repayments as a result of this when they come off short term fixed rate and tracker mortgage this year.
