Many fixed-rate mortgages 'vanish' following interest rate rise

16-Jan-2007

Following last week's decision by the Bank of England to raise interest rates, many first time buyers may have noticed a reduced availability in the range of fixed-rate mortgages.

According to research released by Moneyfacts, following last weeks interest rate rise, 12 lenders have withdrawn a number of fixed-rate mortgages from their range, potentially putting first time buyers at an increased level of financial pressure.

So far, these lenders have either withdrawn a selected number of fixed-rate mortgages from their portfolio or have opted to abandon the range entirely, leading to speculation that some lenders are looking for an opportunity to increase their profit margins.

"With a further rate rise still on the cards for 2007, those consumers on a tight budget will need to act quickly before more of the current best buy fixed-rate deals vanish," said Julia Harris, a mortgage analyst at Moneyfacts.

"The next few months will be an interesting time in the mortgage market," she added.

The lenders who have opted to withdraw their entire fixed-rate mortgage range include Cumberland Building Society, Mansfield Building Society and the Progressive Building Society.

To find out about those mortgages specifically aimed at first time buyers, see our best buys for first time buyers table.

Moneyfacts offers financial comparisons on a range of financial products, including current accounts and personal loans.

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