I read that Skipton is withdrawing its five year fixed rate mortgages. Will other banks withdraw its fixed rate mortgages?
SimplyFinance Answers is a great place to start your research, but it is not a substitute for personalised, professional
advice. Please review our Terms of Use or Sign Up to ask a question or comment on an existing question. If you would
like to speak to an expert directly, use our Adviser Search to find an adviser in your area and contact them directly through SimplyFinance.
Is this a sign that rates will start increasing soon?
Richard
1 year ago
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
not necessarily.
to be honest you'll find that almost a lender a day will withdraw deals and reprice.
if the new rates are higher it might be a sign that the cost of funding is becoming more expensive (but that could be a cost particular to that lender and its standing in the market). it could equally be a sign that the lender is overly busy dealing with current applications, has hit its desired level of new business and wants to slowly reduce its inflows in order that it doesnt negatively impact on service standards.
so really, you cannot read too much into that. and it only really impacts on you if you are needing a new mortgage within the next 3 months, if not, who knows what the future will bring.
more commonly now, remortgage offers are only valid for 3 months once produced and this is to stop borrowers applying too soon on a good deal when they might still have 6 months to go on their current package.
its different with "purchase" mortgage offers, they will still tend to be good for 6 months to allow for the purchase process and length of chain.
report abuse
to be honest you'll find that almost a lender a day will withdraw deals and reprice.
if the new rates are higher it might be a sign that the cost of funding is becoming more expensive (but that could be a cost particular to that lender and its standing in the market). it could equally be a sign that the lender is overly busy dealing with current applications, has hit its desired level of new business and wants to slowly reduce its inflows in order that it doesnt negatively impact on service standards.
so really, you cannot read too much into that. and it only really impacts on you if you are needing a new mortgage within the next 3 months, if not, who knows what the future will bring.
more commonly now, remortgage offers are only valid for 3 months once produced and this is to stop borrowers applying too soon on a good deal when they might still have 6 months to go on their current package.
its different with "purchase" mortgage offers, they will still tend to be good for 6 months to allow for the purchase process and length of chain.
Expert Financial Adviser Answer
Dr David Carter FPFS
answered 1 year ago
Lenders also withdraw deals if they are not popular enough, or are too popular, and may replace them with similar products with marginal changes. The rates they set are dependent upon a raft of factors, including how keen they are to attract business, their need for profit, and what it costs them to secure the funds from other sources.
I also see no sign that fixed rate deals are diminishing, or are becoming more expensive. But mortgage availability can change very rapidly and different kinds of loan can wax and wane in their attractiveness, so nothing is set in stone. Personally, I am not expecting rapid mortgage changes at the moment, because, although economic outlooks are fairly gloomy and uncertain, things have been fairly stable for some months - if anything improving slightly.
report abuse
I also see no sign that fixed rate deals are diminishing, or are becoming more expensive. But mortgage availability can change very rapidly and different kinds of loan can wax and wane in their attractiveness, so nothing is set in stone. Personally, I am not expecting rapid mortgage changes at the moment, because, although economic outlooks are fairly gloomy and uncertain, things have been fairly stable for some months - if anything improving slightly.
Expert Financial Adviser Answer
Paul Ross DipPFS CII(MP&ER)
answered 1 year ago
I don't think so. Of the 5,500 mortgage deals available on my sourcing system, 754 are for 5 year+ fixed rate deals
Darren is quite right, where mortgage companies offer deals and withdraw them all the time with revamped terms
report abuse
Darren is quite right, where mortgage companies offer deals and withdraw them all the time with revamped terms
