moneysupermarket.com comments lenders' withdrawal of fixed-rate mortgages

Commenting on lenders' withdrawal of fixed-rate mortgages, Louise Cuming, head of mortgages at moneysupermarket.com said:

"It may seem like a rash decision to remove fixed rate deals from the market, but it probably would have happened anyway".

"Tuesday's inflation announcement has simply brought it forward a few weeks".

"It all comes back to first-time buyers - without them the market stagnates".

"Fixed rates have to be the best advice for first time buyers because many have to borrow to their upper limits".

"Now those fixed rate products have been withdrawn we can expect lenders will soon announce a raft of new deals with increased fixed rates".

"This will surely impact on first-time buyers and, in turn, the market".

"In light of this, people might also begin to think twice about moving".

"It's hard to see how the market won't come to a standstill, or at least grind slowly to a halt." The lenders that have so far announced the withdrawal of fixed-rate products in the last week are: Skipton 3 Year Fix 95% LTV 5.69%, 5 Year Fix 75% LTV 5.59%, 5 Year Fix 95% LTV 5.69%.

Newcastle Building Society: 2 year fixed - 5.22%, 10 year fixed rate - 5.35%.

Newbury Building Society: 5 year fixed rate mortgage (fixed until 31 Jan 2012), 5 year fixed rate shared ownership mortgage (fixed until 31 Jan 2012).

Principality Building Society: 10 year 5.59 fixed rate product, 1 year 4.79% fixed rate product.

Alliance and Leicester: Low Start 1 Year Fixed - 2.99%, 2 Yr Fixed - 4.99%, 2 Yr Fixed - 4.79%, min LTV 91.01%, 2 Yr Fixed - 5.14%, 2 Yr Fixed Feesaver - 5.69%, Low Start 2 Yr Fixed - 4.89%, 3 Yr Fixed - 5.29%, 3 Yr Fixed Feesaver - 5.74%, 5 Yr Fixed - 5.33%, 5 Yr Fixed Feesaver - 5.79%, Premier 2 yr Fixed - 4.79%, Premier 2 yr Fixed - 4.99%, Premier 5 yr Fixed - 5.23%.

Northern Rock: 11/2 Year Flexible Fixed Rates from 4.99%, 2 Year Flexible Fixed Rates from 5.09%, 2 Year Flexible Fixed Rates from 4.09%,Together 11/2 Year Fixed Rates from 5.85%, Together 2 Year Fixed Rates from 5.95%.

Halifax: Details TBC.

Yorkshire Building Society - Products to be withdrawn 13th April: Offset 5.79% Fixed Rate until 30/04/09, Offset 5.69% Fixed Rate until 30/04/12, Offset 5.99% Fixed Rate until 30/04/12, Offset 6.09% Fixed Rate until 30/04/12, 3 year BoE Tracker + 0.15%, 3 year BoE Tracker + 0.49%, 4.79% Fixed Rate until 30/04/09, 5.39% Fixed Rate until 30/04/09, 6.09% Fixed Rate until 30/04/09 5.39% Fixed Rate until 30/04/10 6.09% Fixed Rate until 30/04/10 5.49% Fixed Rate until 30/04/12 5.99% Fixed Rate until 30/04/125.35% Fixed Rate until 30/04/17, 5.79% Fixed Rate until 30/04/17, 2.10% discount for 2 years, 1.40% discount for 2 years.

West Bromwich Building Society: Buy to Let - 2 Year Fixed - 5.08% fixed until 30/04/2009, Buy to Let - 2 Year Fixed - 5.45% fixed until 30/04/2009.

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