Santander has become the latest lender to withdraw new mortgage deals as it reassesses the market ahead of more expected interest rate increases by the Bank of England.
The lender removed all rates for new borrowers yesterday, with a refreshed range to be launched on Wednesday.
It comes as the Bank of England is forecast to raise interest rates to 5.5% by the end of the year, as policymakers struggle to bring down persistent inflation.
Jonathan Haskel, a member of the Monetary Policy Committee that decides rates, said yesterday that further increases cannot be ruled out because prices are still rising faster than the Bank’s 2pc target.
A Santander spokesman said: “Due to current market conditions, we’re temporarily withdrawing all our new business residential and buy-to-let fixed and tracker rates at 7.30pm on Monday 12 June. Our product transfer range will still be available. We’re relaunching our full new business range on Wednesday 14 June.”
Nick Mendes, mortgage technical manager at broker John Charcol, said increases in swap rates, which determine lenders’ borrowing costs, are pushing lenders to reprice.
HSBC pulls all its mortgage deals for new customers
