Jump to main content of pageaccessibility informationSitemap
16 Nov 2019

News

Black Monday in the mortgage market

Michelle Slade, analyst at Moneyfacts.co.uk, comments:

“Monday saw one of the largest declines in mortgage products ever seen in a day, with 11.4% of products being culled. At the start of Monday there were 3,914 mortgage products on the market, today there are just 3,469.

 

Product Numbers 29/09/08

Product Numbers 30/09/08

Residential Mortgages

3,252

2,988

Buy-to-Let

662

481

Total

3,914

3,469

Source: Moneyfacts.co.uk

"The buy-to-let sector has been hardest hit since the turmoil began with 85% of products being withdrawn in a year, but residential mortgages are not far behind with a loss of 60% of products.

“Bradford & Bingley and Mortgage Express pulled their entire range, along with UCB Home Loans and The Mortgage Works, which have temporarily withdrawn their products due to unprecedented business volumes.

“Halifax, Bank of Scotland Mortgages, Bristol & West Mortgages, Intelligent Finance and Newcastle BS have also restricted the range of products that they now have on offer.

“This news will be another blow for mortgage borrowers, as not only do they now have a more restricted choice, but the insecurity in the money markets has caused many lenders to increase their mortgage rates.

“If more lenders decide to take the same stance and withdraw their range on a temporary basis, it is likely to cause a bottleneck for the remaining lenders.

“As the pressure on these lenders increases, service is likely to suffer. As a result we may see further lenders being forced temporarily to withdraw their range.

“Coupled with the liquidity problems in the markets, it may be that we see further increases with this phenomenon in other aspects of lending, such as loans and overdraft rates.

“It appears that lenders are slowly turning the tap off on the number of mortgage products available and their appetite to lend. If the problems continue we have to start asking the question, will the tap will be turned off completely until stable markets return?”

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry. 

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.

Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600

We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £500

Remortgages | Mortgage Repayment Guide Remortgage Guide | Life Insurance | Mortgage Protection Life Insurance | Decreasing Term Life Insurance | Accident Sickness Unemployment | Accident Sickness Unemployment Cover | Builds and contents quote | Conveyancing Online | BTL Mortgage | Mortgage Repayment Calculator | Free Mortgage Advice | Online Mortgage Application | Shared ownership mortgages