This week, Skipton Building Society made the decision to withdraw its popular range of 5 yr fixed rate mortgages. The move included the withdrawal of the lender’s Best Buy 90% loan to value option.
According to the Yorkshire-based lender, the decision was made as a direct result of ‘unprecedented demand’ over the last couple of days. The product range was withdrawn immediately.
As interest rates have remained low, it has been claimed by some that borrowers have become too complacent with the situation, having an unrealistic expectation of the rates that should be offered on fixed rate mortgages and believing that interest rates will remain low or only increase by a percentage point over the next year or two.
This report from Skipton Building Society, whose market leading range included an interest rate of just 5.78% combined with an arrangement fee of just £995 for both remortgages and purchases, would appear to suggest that borrowers are beginning to listen to the talk of rising interest rates that could occur later this year.
A number of mortgage advisors have been annoyed at the immediacy of the move as some were processing mortgage applications this week. The range is set to be re-launched on Friday but this will no doubt come with higher interest rates.
In other news recently, several high street mortgage lenders increased their own interest rates on fixed and tracker deals.