Bad news for fixed rate mortgage deals

28 March 2003
The Woolwich, and the National Counties and Lambeth Building Societies, have pulled a number of current fixed rate mortgage deals.

A sharp rise in money market rates has seen the companies forced to increase rates.

The Woolwich it means that the 3.59 per cent, 2-year fix recently on offer will now rise to 3.99 per cent.

The move is to be expected after 2-year swap rates - the rate at which lenders borrow money - rose by 0.7 per cent.

With the Woolwich's latest deal selling out quickly, the mortgage bank has been forced into introducing new fixed rate deals this week with a higher tariff.

If money market rates continue the current trend other lenders are expected to follow suit.