You have to have reflexes like a cheetah to keep up with what is happening in the mortgage market right now.
With mortgage arrangement fees on the up, various lenders increasing their rates and fixed rate mortgages reaching a 10 year high, it’s mortgage mayhem wherever you look.
And as if that wasn’t enough, the mortgage market continues to throw up more uncertainty when one mortgage lender was forced to pull nearly 25% of its mortgages just a day after it launched a new range of deals!
Bristol & West last Friday removed 7 of its 29 types of mortgage; mostly fixed-rate and buy-to-let deals that it launched last Tuesday. It said it it had to take the decision in response to "unprecedented volumes of business received during the past week".
Then just to throw another spanner in the mortgage works, First Direct has now raised the cost of what had been Britain's cheapest 2 year fixed-rate mortgage.
First Direct said its rate would rise from 5.49% to 5.99%; although you will still have to fork out a 20% deposit and a £1,499 fee.
These moves do not help may of you who are desperately trying to find a reasonably priced mortgage. Mortgage prices are changing so fast, that those of you who bother to stop and check rates are now finding the best deals have gone already!
Still hunting for a good mortgage deal? You should use an impartial adviser who can search all mortgage lenders, some you may never have heard of, to find the best deal for your situation.
Ray Boulger of the mortgage broker John Charcol commented on the mortgage mayhem saying:
“It's all a bit crazy out there. Some of these changes have been a delayed reaction to the big increase in swap rates that led both the Nationwide and Woolwich to re-price their rates upwards at the start of the week."
He said that despite recent predictions of a higher bank rate, he considered it was in no way a "done deal".
He said: "I can't see rates rising by more than a quarter point; if at all. I'm predicting they will fall away quite considerably next year, making tracker rates probably the way to go for those who don't need the security offered by a fixed-rate deal."
Also last week, the Council of Mortgage Lenders (CML) said that mortgages remained "slow" in May, with total lending down 19% over the year.
So,do you think there is mayhem in the mortgage market right now?
Have you been finding the best deals disappearing almost as fast as they appear?
(Please note that articles on Money Hospital do not constitute regulated financial advice. The articles are intended to provide general personal financial information. We urge you to consult an Independent Financial Adviser (IFA) before making any important decisions about your finances! All rates are correct at time of printing but are subject to change without notice.)
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