Borrowers looking for a cheap, fixed-rate mortgage deal will be disappointed as lenders like Abbey, Alliance & Leicester and Bristol & West withdraw their fixed-rate deals.
There is normally a glut of cheap deals around Christmas as lenders try to meet their annual sales targets, but this year’s increase in swap rates means that many borrowers will not get the bargain they were hoping for.
However, mortgage brokers like Lambeth Building Society and Skipton Building Society look set to continue offering cheap rates to consumers during the festive period.
James Cotton from London & Country told the Daily Mail: "It seems that while most lenders are worried about swap rates and are adjusting interest rates upwards to account for this, others are still keen to meet their sales targets by offering very low rates."
However, some mortgage experts have warned people should not wait for mortgage lenders to drop their rates as they may miss out on other competitive rates on offer.
People who miss out on fixed-rate mortgages before Christmas may have to wait until the New Year before they have a chance at getting a good deal.
"Lenders will eventually want to replace the deals they have pulled to regain market share, so customers who miss out now will have to wait and see," said Mr Cotton.To read more about Mortgage News, click here.
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